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BlackBerry loses payment dispute with Nokia, to pay $137 million


By Jussi Rosendahl and Alastair Sharp

HELSINKI/(Reuters) - An arbitration ordered smartphone pioneer Ltd to pay $137 million to to settle a payment dispute and the Canadian company said it would pursue a separate patent infringement case against the Finnish firm.

The International of Arbitration ruled earlier this week that had failed to make certain payments to under a patent licence contract, said on Friday.

The ruling, in a previously undisclosed disagreement over a smartphone technology licensing deal signed in 2012, highlights the financial risks technology companies face from disputes over intellectual property, which are sometimes resolved through confidential arbitration processes unknown to investors.

won a $940 million payout from chipmaker Qualcomm Inc earlier this year in a similar case of disputed payments.

has previously said it is looking to generate more revenue from its portfolio of some 40,000 by licensing them to other technology companies, and in November said that U.S.-based Marconi Group would help it license out a broad range of its

It is often difficult for investors to value a company's patent portfolio given the opaque nature of licensing deals and disputes.

"Patent issues are going to come up from time to time and as one-offs," said Todd Coupland, an analyst at CIBC World Markets. "Getting in front of them, unless there is some detail, is going to be tough."

shares were down 1.9 percent in midday trading, closed 2 percent lower in Helsinki.

disclosed in February that it had filed separate patent infringement complaints against Nokia, alleging that several of the Finnish network equipment maker's base stations and related software infringed on 11 of its

Nokia, which sells these products to telecom operators, said in a statement on Friday that it believes those infringement claims "are without merit."

said it would take a GAAP charge on its results, but did not say when the ruling would hit its financials.

said a significant portion of the amount awarded had already been recognised in its financials.

sold its once-dominant phone business in 2014, sticking to its network equipment business and broad patent portfolio. It has licensed technology to smartphone makers Samsung Electronics, Apple, Xiaomi Technology and LG Electronics.

(Reporting by Alastair Sharp in and Jussi Rosendahl in Helsinki; Additional reporting by Ahmed Farhatha in Bengaluru; Editing by Jim Finkle and Grant McCool)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 01 2017. 23:14 IST