Nokia takes legal action to ban sale of Blackberry WiFi devices in US

Nokia is taking legal action in the US to block the sale of RIM's Blackberry products that use WiFi connections.

The IDG news service is reporting that RIM has apparently reneged on an agreement to pay Nokia royalties.

Nokia and RIM both declined to comment on Nokia's request, a copy of which was obtained by IDG News Service, but such a filing is typically made after two parties settle a dispute through arbitration but one party does not follow through on the agreement.

The arbitration took place over nine days in September at the Stockholm Chamber of Commerce in Sweden, which acts as a neutral arbiter in commercial disputes. Before arbitration can begin, both sides agree to be bound by the findings.

Among the conclusions, according to Nokia's petition, is that RIM "is not entitled to manufacture or sell products compatible with the WLAN standard without first agreeing with Nokia on the royalty to be paid for its manufacture and/or sale of subscriber terminals compatible with such standards."

Most of RIM's phones implement the 802.11 wireless LAN standard.

The two companies have yet to reach such an agreement, Nokia said in its petition, which was filed Monday at the U.S. District Court in San Jose.

"RIM and its U.S. subsidiary RIM Corporation nevertheless continue to violate the award and breach the underlying agreement, through actions including but not limited to the unauthorized manufacture and sale of WLAN products within this district [Northern California] and throughout the United States."

(Source: IDG via ComputerWorld)