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RIM may end up owing Nokia $5 per phone

Many of the news headlines lately have been detailing the war between Samsung and Apple. As these are the market leaders, it is understandable. Under the radar however, Nokia and Research In Motion (RIM) are embroiled in their own wireless patent battle.

Nokia have said that RIM “is not entitled to manufacture or sell products compatible with the WLAN standard without first agreeing with Nokia on the royalty to be paid for its manufacture and/or sale of subscriber terminals compatible with such standards.”

In 2003, the two companies signed an agreement. RIM are arguing that the license “should have covered patents for non-essential parts.”

Peter Misek, an analyst for Jeffries has said that a victory by Nokia would mean that RIM will end up owing between $2 and $5, for every phone, in royalty payments. RIM are not in a position right now to pay this amount of money and it would cause them some serious operational issues.

RIM have a lot riding on the release of their new Blackberry 10 operating system. If this is a success they may be able to pull themselves from the mire.

Kitguru says: Are the glory days of Research In Motion gone for good?

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