Arbitrators Presiding Over Nokia’s Arbitration with InterDigital Issue Split Decision

Arbitrators Presiding Over Nokia’s Arbitration with InterDigital Issue Split Decision

Espoo, Finland – On July 1, 2005, Nokia Corporation received a decision from the International Chamber of Commerce’s International Court of Arbitration in its pending arbitration with InterDigital Communications Corporation and InterDigital Technology Corporation. In the award, a split ICC arbitration panel purported to set royalty rates payable by Nokia to InterDigital on certain handsets and infrastructure equipment sold by Nokia.

The arbitration involved a license agreement entered into by Nokia and InterDigital in 1999 and Nokia’s most favored licensee rights under that agreement following InterDigital’s execution of licenses with Telefonaktiebolaget LM Ericsson and Sony-Ericsson Mobile Communications.

One of the three arbitrators presiding over the arbitration issued a lengthy and detailed dissent that raises significant issues regarding the enforceability of the decision. Nokia is currently evaluating its options in light of the dissent.

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