Judge Confirms Arbitration Ruling Against Nokia

A New York federal judge has confirmed an arbitration ruling that could lead to Nokia Corp. paying InterDigital Communications Corp. as much as $252 million in royalties, the latter company says.

The Wednesday decision confirms the June ruling by the International Court of Arbitration of the International Chamber of Commerce, which established royalty rates for Nokia products using InterDigital's wireless technology from Jan. 1, 2002, through Dec. 31, 2006.

InterDigital estimates that royalty obligations for covered infrastructure and handset sales would be in the range of $232 million to $252 million.

"I am pleased with today's court decision," William J. Merritt, president and chief executive of InterDigital, said in a statement. "We have always believed that any challenge to the final award would ultimately fail. In rejecting all of Nokia's arguments, the federal court confirmed our belief."

Merritt said if the Finnish handset maker doesn't follow the arbitration decision, which stems from a licensing dispute between the companies, then InterDigital would "continue to pursue all legal remedies to secure payment.""We remain confident that Nokia will pay the amounts due, either of its own accord or by court order," he said.

The licensing dispute stems from a February 1999 technology development and patent license agreement between the two companies, InterDigital said.