Nokia and RIM Sign License Agreement, Settle Wi-Fi Patent Dispute

Nokia and RIM have finally reached an agreement to resolve the alleged patent infringement issues between both the tech giants. Nokia reportedly alleged that RIM has violated patent law pertaining to the design of Wi-fi network feature in Blackberry models.

The company even called for the sales injunction of RIM's Blackberry over this infringement claim. Now it seems that both companies have decided to end these patent litigation issues between them by getting into a licensing agreement.

Though both companies have not disclosed many details regarding the terms and exact nature of the agreement, sources report that Nokia will be receiving a one-time license fee as well as some periodic payments.

Nokia and RIM are witnessing sharp decline in sales and margins and hence this legal litigation issues between the firms was being looked upon with much interest by the experts. Nokia seems to have won the battle for the time being enforcing RIM to agree for setting into a licensing agreement.

On the other side, this could be a blow to RIM financially as they just announced 50% YoY decline in their Blackberry sales in last Q3 of 2012.

Experts believe that since the patent infringement claim was on Wifi capabilities, the licensing agreement could be covering all the RIM's mobile handset portfolio, which would mean a heavy financial commitment from RIM to Nokia.

Though Nokia has been doing bad when it comes to smartphone segment, it is still one of those companies who spend the most in terms of R&D and holds to around 10,000 patents in and around mobile communication and handset technologies.