First patent settlement payment by RIM to Nokia over $65M
updated 08:54 am EST, Fri December 28, 2012
Ongoing fees between $2 and $5 per handset expected in future
The first part of Research In Motion's settlement with Nokia has been paid, a week after the two companies agreed to end all of their outstanding patent battles. The one-off payment of 50 million euro ($65 million) by RIM will be followed by currently-unknown ongoing payments, as part of a patent licensing agreement between the mobile phone manufacturers.
A filing by RIM with the Securities and Exchange Commission shows the $65 million payment, “which has been recorded in the Company's consolidated statement of operations in the third quarter of fiscal 2013”, according to All Things D. While a previous statement from Nokia makes the settlement seem to weigh heavily in its favor, it isn't clear how much the ongoing payments will cost RIM. It is speculated that the royalty rate could be between $2 and $5 per handset, though the large initial payment could end up making the eventual fee drift towards the lower end of the scale.
Nokia earns a considerable amount off its almost 10,000 patent families. Aside from one-off payments such as RIM's $65 million, it is thought that Nokia take in around 500 million euro ($658 million) per year, just in ongoing royalties.
