Nokia 2010 Annual Report Download - page 34

of litigation, the ultimate outcome or actual cost of settlement may vary materially from estimates.
We believe that our provisions for pending litigation are appropriate. The ultimate outcome, however,
may differ from the provided level which could have a positive or negative impact on our results of
operations and financial condition.
See Item 8A7. “Litigation” for a more detailed discussion about litigation that we are party to.
Allegations of possible health risks from the electromagnetic fields generated by base stations
and mobile devices, and the lawsuits and publicity relating to this matter, regardless of merit,
could have a material adverse effect on our sales, results of operations, share price,
reputation and brand value by leading consumers to reduce their use of mobile devices, by
increasing difficulty in obtaining sites for base stations, or by leading regulatory bodies to set
arbitrary use restrictions and exposure limits, or by causing us to allocate additional
monetary and personnel resources to these issues.
There has been public speculation about possible health risks to individuals from exposure to
electromagnetic fields from base stations and from the use of mobile devices. A substantial amount
of scientific research conducted to date by various independent research bodies has indicated that
these radio signals, at levels within the limits prescribed by safety standards set by, and
recommendations of, public health authorities, present no adverse effect on human health. We
cannot, however, be certain that future studies, irrespective of their scientific basis, will not suggest a
link between electromagnetic fields and adverse health effects that could have a material adverse
effect on our sales, results of operations and share price. Research into these issues is ongoing by
government agencies, international health organizations and other scientific bodies in order to
develop a better scientific and public understanding of these issues.
Over the past ten years Nokia has been involved in several class action matters alleging that Nokia
and other manufacturers and cellular service providers failed to properly warn consumers of alleged
potential adverse health effects and failed to include headsets with every handset to reduce the
potential for alleged adverse health effects. All but one of these cases have been withdrawn or
dismissed, with one dismissal currently on appeal. In addition, Nokia and other mobile device
manufacturers and cellular service providers were named in five lawsuits by individual plaintiffs who
allege that radio emissions from mobile phones caused or contributed to each plaintiff’s brain tumor.
Although Nokia products are designed to meet all relevant safety standards and recommendations
globally, we cannot guarantee we will not become subject to product liability claims or be held liable
for such claims or be required to comply with future regulatory changes in this area that could have a
material adverse effect on our business. Even a perceived risk of adverse health effects of mobile
devices or base stations could have a material adverse effect on us through a reduction in sales of
mobile devices or increased difficulty in obtaining sites for base stations, and could have a material
adverse effect on our reputation and brand value, results of operations as well as share price.
Nokia Siemens Networks
In addition to the risks described above, the following are risks primarily related to Nokia Siemens
Networks that could affect Nokia.
Nokia Siemens Networks may be unable to execute effectively and in a timely manner its plan
designed to improve its financial performance and market position and increase profitability
or Nokia Siemens Networks may be unable to otherwise continue to reduce operating
expenses and other costs.
Nokia Siemens Networks announced in 2009 a plan designed to improve its financial performance
and market position and increase profitability. The plan included a reorganization of Nokia Siemens
Networks’ business units to provide a more customerfocused structure, which came into effect on
January 1, 2010, as well as extensive operating expense, production overhead and procurement cost
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