Nokia 2012 Annual Report Download - page 179

HTC
On April 27 and 28, and May 2, 2012, Nokia commenced patent infringement proceedings against HTC
in relation to 20 non-essential patents in the District Courts of Mannheim, Munich and Düsseldorf,
Germany. In addition, on May 2, 2012, Nokia commenced patent infringement proceedings against
HTC in respect of 9 non-essential patents in the ITC, and 18 non-essential patents in three separate
suits in the United States District Court for the District of Delaware. Nokia has voluntarily dropped one
of the asserted patents in the ITC action to date and a second patent has been dismissed from the
action pending the outcome of an arbitration.
The ITC instituted the action on June 4, 2012 and set a target date to complete the investigation by
January 23, 2014. The initial trial is expected to be held May 31, 2013 through June 7, 2013 before the
ITC. The Delaware Federal District Court case involving the same patents as before the ITC remains
stayed pending resolution of the ITC action. The actions against HTC in the Delaware Federal District
Court involving patents not before the ITC are proceeding and one or more Delaware trials on the
merits are likely to be scheduled for the first half of 2015.
HTC filed nullity actions with the Federal Patent Court in Munich and commenced revocation
proceedings against Nokia in the UK High Court in May, June, July and December 2012. On July 18,
2012, S3 Graphics Co. Ltd, a subsidiary of HTC, filed an action for patent infringement against Nokia
GmbH in Mannheim. On the same date, HTC filed a patent infringement action against Nokia GmbH in
Mannheim. On July 23, 2012, HTC initiated parallel infringement proceedings in Munich against Nokia
Corporation in respect of the same patent brought in Mannheim. The first decision on infringement
against HTC is expected March 8, 2013 in Mannheim.
We intend to pursue our claims in these actions to protect Nokia’s interests. However, the final
outcome, including the ability to recover damages, is uncertain due to the nature and inherent risks of
such legal proceedings. Further, we believe that the allegations of HTC described above are without
merit and we will defend ourselves against these actions.
BlackBerry (formerly Research In Motion)
On April 27, and May 2, 2012, Nokia commenced patent infringement proceedings against BlackBerry
in the District Courts of Mannheim, Munich and Düsseldorf, Germany. BlackBerry filed respective
nullity actions with the Federal Patent Court in Munich.
On November 6, 2012, a final and conclusive arbitration award was made against BlackBerry by the
Arbitration Institute of the Stockholm Chamber of Commerce relating to the arbitration BlackBerry
commenced against Nokia on March 7, 2011 in relation to a dispute as to the scope of a patent license
agreement between the parties. On November 26 and 27, 2012, Nokia applied for permission to
enforce the award against BlackBerry in Canada, the US and the UK.
On December 21, 2012, before any of the cases in Germany reached final judgment, the parties
entered a new patent license agreement. The agreement resulted in settlement of all existing patent
litigation between the companies and withdrawal of pending actions in the US, UK and Canada related
to the arbitration tribunal decision. The financial structure of the license agreement includes a one-time
payment payable by BlackBerry and on-going payments to be paid by BlackBerry to Nokia.
Digitude
On December 2, 2011, Digitude Innovations LLC filed two complaints against Nokia. The first action
was pending in the US Federal District Court for the District of Delaware and alleged that certain of our
Lumia smartphones infringed four of Digitude patents and sought unspecified damages. Digitude also
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