Nokia 2012 Annual Report Download - page 41

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, 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, share price, reputation and brand value. 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 twelve years we have 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 All of those cases have been withdrawn or dismissed. In
addition, Nokia and several other mobile device manufacturers and network operators were named in
twelve lawsuits by individual plaintiffs who allege that radio emissions from mobile devices caused or
contributed to each plaintiff’s brain tumor. A hearing on the admissibility of the plaintiffs’ proffered
general causation evidence will likely occur in the fourth quarter of 2013, at the earliest.
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.
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’ sales and profitability depend on its success in the mobile
broadband infrastructure and related services market. Nokia Siemens Networks may fail to
effectively and profitably adapt its business and operations in a timely manner to the
increasingly diverse service needs of its customers in that market.
A key component of Nokia Siemens Networks strategy to focus on the mobile broadband infrastructure
and related services market is the provision of related essential services which it believes will be a key
driver of general sales and profitability. If Nokia Siemens Networks is not successful in implementing its
services business strategy and achieving the desired outcomes in a timely manner or if the mobile
broadband services market fails to develop in the manner currently anticipated by it, or if there are
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