International Court of Arbitration of the International Chamber of Commerce ruled BlackBerry has to pay $137 million to Nokia over a patent licensing dispute between the two, the Finnish tech giant confirmed in an emailed statement. While the nature of BlackBerry and Nokia's preferred method of dispute resolution means its exact contents remain private, both companies previously confirmed the issue at hand was related to an existing patent licensing deal between the two and not any patent infringement allegations. Whereas the reasoning behind the decision of the competent body wasn't publicized for the same reasons, Nokia was quick to notify the media about the result of the proceeds, unsurprisingly welcoming the court's decision to rule in its favor and award it a significant sum that isn't believed to include damages but just what the firm originally claimed it was owed under its existing deal with the Canadian tech company.
The court's decision is a validation of Nokia's claims that BlackBerry failed to complete a number of payments mandated by their previously signed agreement, according to the Finnish firm. The two are believed to have multiple patent licensing agreements currently in force and the exact one that BlackBerry was now found to have violated remains unclear. The development is understood to have little to no effect on Nokia's forecast for the current fiscal year, with the firm revealing that "a significant portion" of the $137 million sum was already accounted for in its consolidated financial reports for the previously concluded quarters. The decision to do so signals Nokia's counsel was highly confident in its predicted outcome of the case, with that belief now proving to have been correct.
The case was initiated by Nokia in the April of 2016 and decided this Wednesday, though it wasn't until earlier today that both companies announced its outcome. BlackBerry accepted the ruling while still disagreeing with it, noting that the sum awarded to Nokia will be recorded by its accounting as a one-time GAAP-only charge and that the development doesn't affect the ongoing legal battles between the two over patent infringement which BlackBerry started in Germany and the United States.