RIM Loses Nokia Patent Lawsuit, Blackberry Ban Probable Unless Royalties Are Paid

Blackberry manufacturer Research In Motion (RIM) was riding high stock prices until news that a pending ban on all Blackberry devices could hit the company in the near future. News that RIM lost a patent dispute against Nokia hit stock holders yesterday causing the stock value to plummet. More bad news came in today, as RIM could see a ban on all of its devices unless they agree to pay royalties to Nokia.

The lawsuit was centered around Nokia patents that cover mobile WLAN technology. An arbitrator on Wednesday ruled that “RIM was in breach of contract and is not entitled to manufacture or sell WLAN products without first agreeing royalties with Nokia.” Here’s what Nokia had to say about the ruling:

Nokia and RIM agreed a cross-license for standards essential cellular patents in 2003, which was amended in 2008. In 2011, RIM sought arbitration, arguing that the license extended beyond cellular essentials. In November, the arbitration tribunal ruled against RIM. It found that RIM was in breach of contract and is not entitled to manufacture or sell WLAN products without first agreeing royalties with Nokia. In order to enforce the Tribunal’s ruling, we have now filed actions in the US, UK and Canada with the aim of ending RIM’s breach of contract.

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