Nokia 2015 Annual Report Download - page 171

169
Financial statements
NOKIA IN 2015
Litigation and proceedings
Beijing Capital
In 2010, Beijing Capital Co., Ltd. (“Beijing Capital”), a former shareholder in a Chinese joint venture, Nokia Capital Telecommunications Ltd.,
initiated an arbitration against Nokia China Investment Co., Ltd. (“Nokia China”) in respect of dividends it claims are owed. The Group disputes
that dividends are owed to Beijing Capital or otherwise payable by Nokia China.The Group prevailed in the arbitration. Beijing Capitel challenged
the award before the Beijng Second Intermediary People’s Court. On February 19, 2016, the Court dismissed the challenge in a reasoned
opinion.
Irish Broadband
In 2010, the Imagine group (IBB Internet Services& Irish Broadband Internet Services trading as Imagine Networks) (“IBB”) served a claim
inthecommercial court of Ireland for breach of contract and tort against Motorola Limited. The claim was later amended to add Imagine
Communications Group as an additional plainti. In 2011, Nokia Siemens Networks acquired certain assets and liabilities including this matter
from Motorola Solutions Inc. (“Motorola”). Among other things, IBB claims that WiMax network equipment purchased from Motorola failed to
perform as promised. The Group disputes these allegations. In 2015, the same claim was made against the Group directly for any amount of the
claim that is deemed irrecoverable against Motorola by virtue of the assignment. The case is still in the discovery phase and no date for trial has
been set.
Vertu
Vertu was a United Kingdom-based business division of the Group that specialized in the provision of luxury mobile phones. The Group divested
the Vertu business to Crown Bidco Ltd in 2013. In 2014, Crown Bidco Ltd served a claim in the commercial court in London alleging breach
ofcontract in relation to the transfer of IT assets and breach of warranties under the sale agreement. The Group disputes these allegations.
During the process certain counter claims have arisen and the trial is not expected until 2017 in order to accommodate these claims.
Pars Iratel
In 2005, Pars Iratel was contracted as a general contractor to the Mobile Communications Company of Iran (“MCCI”) to deliver and implement
part of a network expansion in Iran. The Group provided equipment and certain services to Pars Iratel. Pars Iratel became liable for damages to
MCCI and suered other losses. Pars Iratel owes the Group for some of the equipment and services provided and has made claims against the
Group for losses it claims to have suered. In 2010, Nokia Siemens Tietoliikenne Oy (“NSTL”) commenced ICC arbitration against Pars Iratel.
Thematter was heard in Zurich in 2013. On the request of the parties, the arbitration tribunal stayed the proceedings to allow for settlement
discussions. In March 2016, the parties entered into a binding settlement agreement and asked the arbitration tribunal to issue an award
byconsent.
Intellectual property rights litigation
Samsung
In 2013, the Group and Samsung agreed to extend their existing patent license agreement for ve years from December31, 2013. According
tothe agreement, Samsung will pay additional compensation to the Group from January1, 2014. In January 2016, the International Court of
Arbitration of the International Chamber of Commerce issued its award for the arbitration between the Group and Samsung. The award covers
part of the Nokia Technologies patent portfolio until December 31, 2018. The full terms of the agreement are condential.
LG Electronics
In June 2015, LG Electronics agreed to take a royalty-bearing smartphone patent license from Nokia Technologies. The detailed royalty payment
obligations are subject to arbitration, expected to conclude within one to two years. Terms of the agreement are condential.