RIM's initial patent agreement payment to Nokia comes in at $65 millionAlex Wagner - Deputy Managing Editor, News Desk
Nokia and RIM may have opted not to divulge any of the financial information of its recent patent licensing agreement, but that doesn't hasn't stopped the world from finding out some of the juicy details anyway. In a recent filing with the Securities and Exchange Commission, RIM has revealed that the initial one-time payment that it'll be making to Nokia weighed in at €50 million, which works out to around $65 million. There's no mention in the filing of how much RIM's ongoing payments to Nokia will be.
For those that may have missed the pre-settlement tiff, this situation began when RIM believed that one of its existing patent cross-licensing agreements with Nokia should cover WLAN patents. RIM sought arbitration to help settle the matter, and the tribunal involved sided with Nokia, which led Nokia to file suits against RIM in the U.S., U.K. and Canada to enforce the ruling and potentially ban RIM products. The two companies ultimately came to a new agreement in which RIM would make ongoing royalty payments to Nokia as well as an initial one-time fee, which we now know set the BlackBerry manufacturer back around $65 million. That's a pretty large sum, but hey, it's probably better than facing a product ban, right?