Nokia 2011 Annual Report Download - page 188

Nokia’s accused products. On review of the Administrative Law Judge’s opinion, the ITC affirmed the
finding of non-infringement and took no position on whether or not the patents were invalid. IDT
appealed the Commission’s decision to the Court of Appeals for the Federal Circuit. Oral argument
before the Federal Circuit was held on January 13, 2011, and we are awaiting a decision in this matter.
In July 2011, IDT filed another complaint against Nokia with the ITC alleging infringement of seven
declared essential WCDMA patents, amending the complaint later to add another codefendant. The
same patents 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. An evidentiary hearing before the Administrative Law Judge is currently scheduled to be held
October 22 through November 2, 2012, with a target date for completion of the ITC investigation
currently set for June 28, 2013.
We believe that the allegations of IDT described above are without merit, and we will continue to
defend ourselves vigorously against these actions.
IPCom
In December 2006, we filed an action in Mannheim, Germany for a declaration that Robert Bosch
GmbH was obliged to grant Nokia a license on fair, reasonable and non-discriminatory (“FRAND”)
terms, thereby especially referring to Bosch’s earlier licensing practice. In 2007, Bosch’s patent
portfolio was sold to IPCom GmbH & Co KG, and IPCom was joined to the action. Bosch, supported by
IPCom, counterclaimed against us demanding payment of excessive royalties. In April 2009, the
Mannheim Court dismissed all claims. Both IPCom and Nokia appealed, but in 2011 the Karlsruhe
Appeal Court dismissed both appeal and counter-appeal. This decision is now final.
From December 2007 onwards, IPCom has filed actions against Nokia and members of the Nokia
Leadership Team in Mannheim and Düsseldorf, Germany claiming infringement of 17 patents and two
utility models. All but one of these have reached trial at first instance, and a number are on appeal.
Nokia has responded by filing nullity actions in the German Patents Court and oppositions before the
German and European Patent Office (“EPO”) in relation to these patents, utility models, and other
patents included in IPCom’s list of patents. To date, all patents and utility models of IPCom that have
reached trial have been found to be invalid and/or not infringed, except for one patent, which has been
found to be infringed by certain Nokia products. However, in Germany there are separate court
proceedings for infringement and validity of patents, and the decision on the validity of the one patent
has not been reached yet. Nokia’s opposition to the patent is pending with the EPO as well. We will
pursue all of our appeal rights.
Since September 2008, Nokia has commenced revocation proceedings in England against 30 of
IPCom’s UK patents. IPCom has responded by bringing infringement actions in relation to some of the
patents in issue. On January 18, 2010, the two IPCom patents that were subject to the first trial were
found invalid. IPCom appealed this ruling. The Court of Appeal has dismissed the appeal in relation to
both. IPCom has conceded that 23 other patents should be revoked. Three cases remain on-going at
first instance. In one case (the parallel to Germany) certain of Nokia’s older devices were found to have
infringed an IPCom patent, but the court ruled that Nokia’s devices currently on the market do not
infringe. The non-technical defences have not yet been heard. Nokia is appealing the finding that the
patent was valid, and that older devices infringe. The appeal hearing was held in February 2012; a
decision is expected in April 2012.
In Italy, IPCom filed criminal complaints against Nokia and some Nokia individuals for allegedly
infringing IPCom patents. IPCom requested seizures of Nokia devices. The complaints were
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