RIM's patent payment to Nokia starts at $65M
The patent peace between the two companies comes at a financial cost to BlackBerry maker Research In Motion.
Research In Motion is making an initial payment of $65 million toas part of the settlement of the patent dispute between the two companies.
RIM and Nokia, saying that RIM has agreed to make a one-time payment to the Finnish phone maker along with "ongoing payments" for the right to use Nokia's patents. At the time, they did not disclose the value of any of the payments.
The new patent license agreement brings an end to all of the patent litigation between the companies and Nokia's dismissal of all pending actions in the United States, United Kingdom, Canada and Germany, according to the SEC filing.
Nokia patents that had been cited in lawsuits against RIM touched on a number of technologies including the following, according to the SEC filing: power consumption in a mobile station; a network activation service scheme using point-to-point short messaging service; and a security improvement scheme for packet-mode transmission in a mobile communication system.
The one-time lump sum of 50 million euros (approximately $65 million) was recorded in RIM's consolidated statement of operations for the third quarter of its fiscal 2013. RIM announced the results for that quarter on December 20,of $14 million, or 3 cents a share, thanks largely to a favorable tax settlement, as revenue fell by nearly half to $2.72 billion and as the company shed 1 million BlackBerry customers.
RIM is hoping for a return to former glory in 2013 with the long-anticipatedoperating system in late January.
The SEC filing does not disclose the amount of the ongoing license payments from RIM to Nokia.
RIM declined to provide additional comment.