As more and more companies conduct business across international borders, questions of tax revenue recognition and transfer pricing taxes become more and more salient. Tax authorities in different nations, fighting over which country gets to tax the multi-national corporation's income, enter into sometimes-heated disputes over where that income should be recognized, leading to costly and time-consuming litigation.
Finnish company Nokia Oyj recently commenced what could be a protracted battle to enforce an international arbitration award won last month against Blackberry-maker Research in Motion Ltd. ("RIM"). In late November, Nokia sued RIM in federal court in California to enforce the Swedish arbitrator's decision, which stated that Nokia is entitled to receive royalties on RIM's sale of WLAN-compliant mobile devices. "Wireless local access network systems" or "WLAN" technology allows mobile devices to connect to WiFi networks.