Nokia loses appeal in InterDigital case

Wireless technology developer InterDigital Communications Corporation confirmed that a federal district court judge has ruled against an appeal by Nokia to a June 2005 international abitrator decision that awarded InterDigital royalties from Nokia amounting to between $232 million and $252 million.

This week's ruling occurred in the U.S. District Court for the Southern District of New York, and confirmed in its entirety the award rendered in June 2005 by the Arbitral Tribunal operating under the auspices of International Court of Arbitration of the International Chamber of Commerce.

As part of the earlier ruling, the Arbitral Tribunal established royalty rates applicable to Nokia's sales of covered products for the period beginning January 1, 2002 through December 31, 2006, and reflected Nokia's leading position in the handset market.

Nokia reportedly was studying its options in wake of its lost appeal, but barring any further appeals or court action, this week's ruling may bring to end a dispute that began in July 2003, when Nokia sought arbitration because its disagreed with royalty payment terms established by InterDigital. The framework for those royalty terms had been set by an earlier licensing agreement InterDigital had signed with Nokia competitor SonyEricsson, according to InterDigital.

InterDigital is based in King of Prussia, Penn.