BlackBerry-maker Research In Motion, loses WLAN-related patents case against Nokia Corporation (NYSE:NOK) on Wednesday. The judgment ruled that RIM will have to pay royalties for handsets.
Nokia Corporation (NYSE:NOK) filed suit in the US, UK and Canada with the intention to put an end to its licensing issues.
Research In Motion Limited got this bad news on Wednesday; it has only a 4.3% share of the global smartphone market in third-quarter. In last trading session, RIMM plunged more than 10% at $10.72 after it receives negative comments from Morgan Stanley (NYSE:MS).
Nokia Corporation (NYSE:NOK) and RIM decided to cross-license standards-necessary patents in 2003, which was then modified in 2008. In 2011, Nokia declared that RIM disputed these patents, which cover WLAN technologies widened beyond cellular essentials and thus the two firms headed to court arbitration.
Earlier on Wednesday, Nokia reported that the hearing had ruled against RIM, stating that it was not allowed to manufacture or sell WLAN products without first approving royalties with Nokia.
This could have a noteworthy financial impact, plus all BlackBerry devices support WLAN, even though the volumes are at present very low in major countries, according to IDC analyst Francisco Jeronimo.
RIM refused to comment on the ruling. As on Tuesday Research In Motion (NASDAQ:RIMM)’s shares plunged after AllThingsD blog declared that Ehud Gelblum analyst at Morgan Stanley gave more bearish comments on the Blackberry maker.
Gelblum recommended the BlackBerry maker improved than anticipated second quarter earnings were just an irregularity, and not the start of a trend, and was negative regarding the release of the BlackBerry 10 in the new year.
Financial Performance; Nokia Corporation (NYSE:NOK)’s shares surged about 2% before market on Wednesday as in last trading section NOK traded at $3.17 by plummeting 5.56% or 0.19 cent with traded volume of 75.55 million compare to the average volume of 45.28 million.
In addition, shares of Research In Motion Limited (NASDAQ:RIMM) slipped -1.26 dollars or -10.52% to closed at $10.72. The Beta factor was calculated as 1.64%. The sales of RIMM was $15.05 billion with net income of -$613.00 million and not yet offer a dividend.
Research In Motion’s stock surged during the last trade to the maximum level at $12.00 and during the session traded at the lowest level of $10.71 after opening at $11.98. RIMM has earning per share of -$1.17 while it has 524.16 billion shares outstanding with institutional ownership of 65.57%.