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Nokia sues handset makers, sets goals

Nokia Corp. announced it has taken legal action against two European handset manufacturers for alleged patent infringements and intellectual property rights. In a separate action, the firm also set new goals for itself for the next several years.

Nokia, the largest producer of mobile phones in the world, charged Spanish manufacturer Vitelcom with violating patents covering GSM and GPRS technology. The suit seeks to halt the sale of some Vitelcom phones as well as unspecified monetary damages.

The Finnish firm also sued Sagem, claiming its French rival’s X5-2 handset design is simply too similar to Nokia models, infringing on intellectual property rights. That suit, filed in Germany, also seeks monetary damages, and calls for Sagem to withdraw the model. Just last week, Sagem announced plans to merge with a French aerospace company.

At a meeting in New York, Nokia said it expects the mobile device industry to grow 10 percent in volume next year, and believes the global mobile subscriber base will surpass 2 billion users in 2006. The firm set goals for mobile device operating and infrastructure margins and said it hoped to lower its cost of research and development.

“Industry dynamics have shifted, and we have been adapting our mindset, customer approach, product portfolio and technologies to sharpen our competitive position,” said Jorma Ollila, Nokia’s chairman and chief executive officer.

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