Seeking Alpha

Nokia (NOK) and Research In Motion (RIMM) settle a dispute over patent licenses to end their...

Nokia (NOK) and Research In Motion (RIMM) settle a dispute over patent licenses to end their legal wrangling. Though specific terms of the agreement weren't disclosed, Research In Motion will make a one-time payment to Nokia as well as licensing payments in the future.
Comments (9)
  • Abu Bakr Hussain
    , contributor
    Comments (595) | Send Message
     
    Does anyone know if it will be possible to glean royalty payment figures from Nokia's next earnings report?
    21 Dec 2012, 06:14 AM Reply Like
  • Leont68
    , contributor
    Comments (1365) | Send Message
     
    its a 65 million usd lump sum payment and ongoing royalties, its in form 6-k that rimm filed http://1.usa.gov/RSeSzL
    26 Dec 2012, 12:22 PM Reply Like
  • ericmeister
    , contributor
    Comments (350) | Send Message
     
    Nordea analyst Sami Sarkamies estimated that on-going royalties will be no more than 100 million euros / year from RIM, and one time payment will be few hundred million euros.
    21 Dec 2012, 06:41 AM Reply Like
  • Dantes_Will
    , contributor
    Comments (341) | Send Message
     
    Keep in mind that this is on top of the $5 per phone RIM is already paying NOK for licensing.

     

    Analysts' guess is that this will bump payments to roughly $9 per unit, not including back payments.

     

    Too bad RIMM only managed to sell 7M phones last quarter. Oh well... more money for NOK at least.
    21 Dec 2012, 11:15 AM Reply Like
  • kmi
    , contributor
    Comments (4030) | Send Message
     
    This is huge vis a vis the low cost emerging markets where NOK and RIM compete pretty intensely, and will hurt RIM margins to NOK's benefit there.

     

    I suspect one of the reasons Asha is so cheap for NOK is because NOK may not be paying much if any royalties on it. For a product line in the sub-$100 range, like Nokia's Asha line, a $5 royalty is not insignificant.
    21 Dec 2012, 12:09 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8609) | Send Message
     
    Perhaps this will make Nokia a profitable company, no?
    21 Dec 2012, 07:51 AM Reply Like
  • ericmeister
    , contributor
    Comments (350) | Send Message
     
    @Dvl

     

    After judge will rule the similar case HTC vs Nokia in favor of Nokia, the ongoing royalties will be over $1 billion a year (largely depending on how many iDevices Apple will sell). So yeah, you could say patent portfolio is one good income source, regardless how much Nokia sells its own devices
    21 Dec 2012, 11:41 AM Reply Like
  • Zhang Fei
    , contributor
    Comments (606) | Send Message
     
    Maybe Eddie Lampert will swoop in and do for RIMM what he's done for Sears and K Mart.
    21 Dec 2012, 12:56 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5584) | Send Message
     
    (NOK) wins. (RIMM) loses.
    21 Dec 2012, 10:12 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector