Sierra Wireless Files with European Commission and U.S. Federal Trade Commission against Nokia for Abuse of Dominant Position in

  Sierra Wireless Files with European Commission and U.S. Federal Trade
  Commission against Nokia for Abuse of Dominant Position in GSM and 3G
  Essential Patents

Business Wire

VANCOUVER, British Columbia -- November 21, 2013

Sierra Wireless (NASDAQ:SWIR) (TSX:SW) today announced it has submitted a
complaint with the European Commission (EC) against Nokia for anti-competitive
behavior and a request for the U.S. Federal Trade Commission (FTC) to start a
formal investigation.

The EC complaint says Nokia is discriminating against Sierra Wireless and
abusing its dominant position as a GSM and 3G standard essential patent (SEP)
holder. Sierra Wireless alleges that Nokia applies widely different, and
therefore unfair, royalty rates for the same SEPs to make identical GSM
wireless modules; that Nokia is imposing unfavorable and unreasonable royalty
terms that put Sierra Wireless at a competitive disadvantage; and that Nokia
has refused to license 3G SEPs for wireless modules in spite of its clear
obligation and repeated requests from Sierra Wireless to do so.

Sierra Wireless believes that Nokia is in breach of Article 102 of the Treaty
on the Functioning of the European Union and Nokia’s obligation to grant SEP
licenses on fair, reasonable and non-discriminatory terms (FRAND) as required
by the European Technology Standards Institute (ETSI).

Sierra Wireless has been seeking a mutually acceptable resolution of the
royalty rate issues and a license to use Nokia’s 3G SEPs. With no clear
response from Nokia, Sierra Wireless believes the best way to resolve this
matter and clarify royalty discrepancies is to file a complaint with the EC.
In addition, Sierra Wireless has notified the U.S. Federal Trade Commission
(FTC) of the complaint and requested the FTC open an investigation into
Nokia’s breach of FRAND rules and U.S. laws on fair trade and monopoly
practices. The company has also requested the ETSI to investigate Nokia’s
behaviour in breaching its commitment to the FRAND rule with another ETSI

Pierre Cosnier, Senior Director, Legal Affairs for Sierra Wireless said: “We
are acting to protect our customers and ourselves from the unreasonable
actions of some standard essential patent holders, which result in unresolved
patent license disagreements that we want to remedy on fair, reasonable and
non-discriminatory terms.”

Sierra Wireless is urging the EC to investigate and require Nokia to reveal
the pricing for 2G and 3G SEP licenses with other licensees, end the breaches
outlined in the complaint, sanction Nokia, and require these patent licenses
to be granted on FRAND terms.

About Sierra Wireless

Sierra Wireless (NASDAQ:SWIR) (TSX:SW) is the global leader in
machine-to-machine (M2M) devices and cloud services, delivering intelligent
wireless solutions that simplify the connected world. We offer the industry’s
most comprehensive portfolio of 2G, 3G and 4G embedded modules and gateways,
seamlessly integrated with our secure M2M cloud services. Customers worldwide,
including OEMs, enterprises, and mobile network operators, trust our
innovative solutions to get their connected products and services to market
faster. Sierra Wireless has more than 850 employees globally and has R&D
centers in North America, Europe and Asia. For more information, visit

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Sierra Wireless
Sharlene Myers
T: +33 (0)1 46 29 41 49
onechocolate communications
Daniel Couzens
T: +44 (0)20 7437 0227
M: +44 (0)7971 593 907
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