Nokia 2010 Annual Report Download - page 166

See Note 31 to our consolidated financial statements included in Item 18 of this annual report.
7C. Interests of Experts and Counsel
Not applicable.
ITEM 8. FINANCIAL INFORMATION
8A. Consolidated Statements and Other Financial Information
8A1. See Item 18 for our consolidated financial statements.
8A2. See Item 18 for our consolidated financial statements, which cover the last three financial years.
8A3. See page F1 for the audit report of our accountants, entitled “Report of Independent Registered
Public Accounting Firm.”
8A4. Not applicable.
8A5. Not applicable.
8A6. See Note 2 to our audited consolidated financial statements included in Item 18 of this annual
report for the amount of our export sales.
8A7. Litigation
Intellectual Property Rights Litigation
InterDigital
In 1999, we entered into a license agreement with InterDigital Technology Corporation and
InterDigital Communications Corporation (together “IDT”). The license provided for a fixed royalty
payment through 2001 and most favored licensee treatment from 2002 through 2006. In April 2006,
Nokia and IDT resolved their contract dispute over the patent license terms related to 2G products,
with Nokia obtaining a fully paidup, perpetual, irrevocable, worldwide license to all of IDT’s current
and future patents, for purposes of making or selling 2G products. The IDT settlement terms did not
address any prospective 3G license terms; however, our sale of 3G products was fully released
through the date of the settlement agreements.
Nokia Corporation and Nokia Inc. (referred collectively as “Nokia”) and IDT currently have pending
legal disputes in the United States regarding IDT’s alleged 3G patents. Among them, in August 2007,
IDT filed a complaint against Nokia with the US International Trade Commission (“ITC”) alleging
infringement of two declared essential WCDMA patents, amending the complaint later to add two
additional patents. The consolidated action includes four patents, which were also asserted against
Nokia in a parallel case in the United States District Court for the District of Delaware. The Delaware
case is stayed pending the ITC action. Through its ITC action, IDT is seeking to exclude certain of our
WCDMA handsets from importation and sale in the United States.
A hearing on the merits of IDT’s ITC case was conducted in May 2009. On August 14, 2009, the
Administrative Law Judge (“ALJ”) issued an opinion finding the patents valid, but not infringed by
Nokia’s accused products. On review of the ALJ’s opinion, the ITC affirmed the finding of non
infringement and took no position on whether or not the patents were valid. IDT appealed the
Commission’s decision to the Court of Appeals for the Federal Circuit, and briefing for the appeal was
completed on August 30, 2010. Oral argument before the Federal Circuit was held on January 13, 2011
and we expect a ruling later this year.
We believe that the allegations described above are without merit, and we will continue to defend
ourselves against these actions vigorously.
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