KING OF PRUSSIA, Pa.-InterDigital Communications Corp. said an arbitral tribunal in its case with Nokia Corp. has established royalty rates applicable to covered Nokia products dating back to Jan. 1, 2002, and continuing through the end of 2006.
The Arbitral Tribunal operates under the International Court of Arbitration of the International Chamber of Commerce. Its ruling is part of a final award in the arbitration proceeding between InterDigital, its wholly owned subsidiary, InterDigital Technology Corp., and Nokia.
InterDigital said it estimates Nokia’s royalty obligations for covered infrastructure and handsets from 2002 through the end of 2003 to be about $112 million, based on established royalty rates. The company further estimates Nokia’s royalty obligations for the period between Jan. 1, 2004, and the end of 2006 will be between $120 million and $140 million.
The award relates to royalty obligations as part of Nokia’s second-generation GSM/TDMA and 2.5-generation GSM/GPRS/EDGE products included in its existing patent license agreement with InterDigital Technology, said the company.
William J. Merritt, president and chief executive officer of InterDigital, said the company has filed an action against Nokia in the U.S. District Court for the Southern District of New York to compel compliance with the award. The company also said it expects the award to have a significant impact on pending arbitration with Samsung Electronics Co. Ltd.
