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Cellular Phone Maker Says It Will Continue Sales Despite Ruling

August 31, 1989

BASKING RIDGE, N.J. (AP) _ Finnish phone maker Nokia Inc. said Wednesday it would modify the two mobile telephone components a U.S. administrative law judge said may infringe on a U.S. rival’s patents.

Nokia President Jan Loeber said it can continue selling the cellular phones after posting a bond required by the International Trade Commission. The ITC also set a bond for Motorola Inc. of Schaumburg, Ill., which challenged the Nokia patent.

Whichever company loses the patent battle loses its bond. The amount of the bonds is confidential.

Loeber said his company wanted to fulfill customers’ orders, and made the modifications so imports could continue. He said Nokia, which has its North American headquarters here, is the world’s leading cellular phone maker.

Judge John J. Mathias in Washington, D.C., recommended two weeks ago that the commission deny Nokia’s patents for two of the phone’s devices: one that lights the keypad and another that allows circuitry to function despite internal temperature changes.

Mathias upheld the phones’ overall design, but ruled that the patents for the two devices may infringe on Motorola’s patents.

The ITC on Tuesday ordered Nokia to stop importing the phones or selling them without posting a bond.

Nokia said it hopes to persuade the ITC to change its mind before the commission’s final order is issued next spring. Motorola also challenged the patents in federal court in Chicago. That case is pending.

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