Nokia and Research In Motion have decided to settle all outstanding patent litigation between the two sides as each plots its own strategy to close the widening gap in mobile market share created by Apple and Samsung. While the terms of the licensing agreement remain confidential, RIM will pay its Swedish competitor a one-time fee this quarter plus ongoing royalties.
According to Reuters, Nokia has amassed an impressive patent portfolio following its collective $60 billion investment in mobile technology research and development during the past two decades. However, lagging sales and downgraded credit ratings have placed the company in a precarious financial situation in recent years.
"We are very pleased to have resolved our patent licensing issues with RIM and reached this new agreement, while maintaining Nokia's ability to protect our unique product differentiation," Nokia chief intellectual property officer Paul Melin stated.
On the other side of the negotiating table, RIM is preparing for what could be a pivotal few months. According to CNET, the company recently saw its stock price take a double-digit hit just a day after a better-than-expected quarterly earning report. This news followed speculation that the company may have to slash its traditional security service surcharges in an effort to boost interest in its BlackBerry 10 product line, which debuts next month.