RIM dished out a one-time payment of $65 million to Nokia in patent license agreement

Ian Hardy

December 26, 2012 10:52 am

RIM and Nokia settled all their patent infringement issues last week. Nokia was granted a one-time payment plus ongoing royalties. At the time the terms of the deal were not disclosed, but according to a Securities and Exchange Commission filing (form 6-K) RIM has paid out a one-time payment of $65 million.

“On December 21, 2012, Nokia and RIM announced that they have entered into a new patent license agreement. The agreement will result in the settlement of all patent litigation between the companies and Nokia’s dismissal of all pending actions in the United States, United Kingdom, Canada and Germany. The financial structure of the agreement includes a lump sum €50 million (approximately $65 million) one-time payment, which has been recorded in the Company’s consolidated statement of operations in the third quarter of fiscal 2013.”

There was no word on the ongoing royalty payments. $65 million is still a big chunk of money, but in perspective, RIM recently announced their Q3 results and declared they have $2.9 billion in cash with no debt. RIM will be showing their new BlackBerry 10 OS and two new BlackBerry 10 smartphones on January 30th, 2012.

Source: WMPU

  • djino

    BB10?

    • som

      When the announcement rolls around I want you and all you pals who do the same thing and post “BB10?” or “Is this BB10?” come right on here and post the same comment.

      I want to be the first to say it to you and your “BB10 POSTING PALS – BB10PP” that it’s a BB10, it’s the sh#t and has all the apps that BB10 users need.

      You can then go ahead and make an informed reply or make the same a## comment. You can also make a comment that it has nothing on iOS or Android. Then I’ll say, “you’re right, it’s new, doesn’t have rounded corners and doesn’t have as many fart apps, I’m quite happy with it”

      Thank you and have a Happy New Year

      I’ll see you and your “BB10PP’s” comments after the announcement.

    • Dilbert

      RIP RIM.

    • Go RiM!!!!!

      RIMM stock is on the rise again today!
      Things are ramping up for a huge launch.

  • Miknitro

    One time payment, I like that.
    Reasonable agreement between reasonable parties.

    • hoo dat

      I agree, patent battles have become contentious and bitter battles far removed from the spirit of why patent laws were created in the first place.

      In this case both partied got off pretty lightly and with their dignity still intact. Lawyers fees alone would probably have hit more than the agreed upon sum.

    • babablacksheep

      Baaaa Baaaa Blackberry fans lol. This is more than a one-time payment, there will be ONGOING payments as well. Apple also makes payments to the KING of the phone market, Nokia.

      Also LOL at this mobilesyrup circle jerk for RIM. How much “syrup” did you guys use? LOL

      RIM is growing cash, and has no debt? HOW? Cutting jobs costs money, contrary to sheep belief. WHERE is this so called “cash” coming from? RIM is losing a lot of money on Playbooks, and they are selling old Blackberries at fire sale prices.

      So we are to believe their cash on hand is close to their market value, they have no debt and their cash is growing? It makes zero sense, but of course the bbaaaa baaa Blackberry fans will believe everything they hear.

    • monsterduc1000

      “…one-time payment plus ongoing royalties.”

      Except this denotes it is not a one time payment…

      One time payment means, well, one time payment doesn’t it?

    • Toto

      Wouldn’t 5 times payment of $13m be better because they would earn back some interest before each consecutive payments?

  • Rich

    Did they even put much effort into negotiating this figure down? Seemed like it was a quick settlement…

  • MattZ10

    proof that cell companies can settle out of court…cough*apple*cough

  • xenrobia

    I don’t know what kind of settlement the arbitrator recommended, but it’s good to see that it’s done and over with. I have a feeling this settlement is somewhat less then what was awarded by the arbitrator and Nokia accepted it rather than dragging the whole issue through the courts where they may have gotten a less favourable result – minus the inherent legal fees.

  • Slimjim

    Merry bankruptcy RIM.

  • hendrix

    About time! Canada’s RIM will once again rise!

  • 2cf

    RIP RIM!!!!! :D :D

  • Finance101

    babablacksheep if you don’t know how RIM is growing their cash balances I think you should read the basic Finance 101 section on Cash Flow. I’m sure your only like 14 so I understand why this might not make sense to you.

    • babablacksheep

      Typical sheep comment.

      Playbooks are selling at a loss, phones are sold at fire sale prices. HOW is that generating profit?

      Now they are going to eat into their cash to build up BB10 inventory and for BB10 marketing.

  • aryana

    Blackberry. Yum Yum <3

    • babablacksheep

      I want to yum yum you

  • Moose

    Wouldn’t it be grand, if we could understand the legal jargon of these rulings. I am very happy this was a “lump sum” payment rather than some further agreement that could threaten future profitability. Here is to hoping that this “legal trend” subsides so companies can have time to breathe. I understand it is warranted in some cases, but for a company that is trying so hard to survive their transition, give them room to breathe. I will, however, make some effort to understand the basis of this ruling. I don’t see RIM dishing out this kind of sum if it wasn’t warranted in some legal sense. Billion Dollar Plus Companies should have a new years resolution to commit to ‘best practices’ of which they advocate internally, and ease up on the legal battles.

  • REDRUM

    I actually think RIM has a lot going for them. Surprised? :)

  • Raid

    @Babablacksheep Do you realize that the vast majority of RIM’s profits come from their BES servers and licensing fees to corporations and governments?