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BlackBerry to Pay $137 Million to Nokia on Contract Dispute

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BlackBerry Ltd. (BB - Free Report) has lost a payment dispute with Nokia Corp. (NOK - Free Report) due to which, the former will pay approximately $137 million to the latter.

Per The International Court of Arbitration, BlackBerry has failed to make certain payments to Nokia under a patent license contract. Consequently on Nov 29, the arbitration panel had ruled in favor of Nokia.

BlackBerry will record a GAAP charge on its results. Nokia has already realized a major portion of the amount.

Meanwhile, BlackBerry is pursuing a separate patent infringement complaint against Nokia in the United States and Germany. The smartphone maker claims that Nokia infringed on 11 of its patents. However, the Finnish network equipment maker says the claims are without merit.

 

A similar patent violation story was heard of late, wherein Qualcomm Inc. (QCOM - Free Report) filed three new patent infringement complaints against tech giant, Apple Inc. (AAPL - Free Report) .

Earlier in the year, this Zacks Rank #3 (Hold) company received $940 million from Qualcomm in a similar case of dispute. This repayment plan helped set up BlackBerry’s stock buyback of 31 million common shares. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has been making continued efforts to expand its footprint. To this end, it has inked several deals of late. On a positive note, BlackBerry is entitled to receive royalties from watchmaker Timex, courtesy of its contract with the latter. Also, it signed an agreement with Appdome, the first cloud hub for mobile app integration. This contract would allow codeless integration of secure voice, video and messaging functions.

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