BlackBerry to Pay $137 Million to Nokia Over a Disputed Contract

Blackberry

BlackBerry is a cybersecurity software and services company dedicated to security enterprises. It has its base in Waterloo, Ontario,  and was founded in 1984. However, after years of expansion, it now operates from countries such as North America, Europe, Asia, Australia, Middle East, Latin America and Africa. The Company trades under their ticker symbols of “BB” showcased at the Toronto and New York Stock Exchange.

On April 28, 2016, Nokia had filed a Request at the Arbitration with the International Chamber of Commerce International Court of Arbitration regarding a dispute related to payments alleged under a patent license contract between Blackberry and Nokia. Thus, on November 29 this year, the arbitration panel awarded Nokia approximately $137 million, that is to be paid by Blackberry.

Statements made by Blackberry are

BlackBerry is disappointed that the Court of Arbitration did not agree with our arguments in the case but we accept their decision. This ruling does not change BlackBerry’s assertion that Nokia is infringing on our intellectual property and we are continuing to vigorously pursue legal remedies in both the U.S. and Germany.

The former has been accusing their rival, Nokia of infringing on eleven of their patents among mobile networking products. We all know that IP is and has always been a cornerstone of BlackBerry’s business models, but now has become even more important as they no longer make their own hardware, like the past.

Blackberry's CEO John Chen, is of the view that the mobile company’s patent portfolio works as a key to their strategy because BlackBerry has redirected its plans towards other mains such as software, security and licensing to companies such as TCL, which has begun to release products under its name.

We all know that Blackberry and Nokia have been fierce smartphone rivals, both having dominated the market once in their lifetime. This dispute goes way back to 2016 and was developed over a patent licensing contract. The details of the contract are yet to be cleared out, but Blackberry had to pay the amount agreed on by the International Court of Arbitration. But the fact is that this whole intellectual property lawsuit is not getting over anytime soon.

References- Market Wired, Tech Crunch, Blackberry, 9to5Mac