Finnish handset maker Nokia Corp. has announced that it has hit a new patent licensing agreement with Canadian smartphone rival Research in Motion (RIM), putting an end to all existing litigation between the two companies.

The agreement includes a one-time payment and on-going payments - all from the Canadian manufacturer to Nokia.

Nokia had sued RIM last month, alleging that the BlackBerry maker had breached its cellular patent contract that the two companies had signed in 2003, in Britain, Canada and the United States.

The BlackBerry maker argued that the license that covered patents on standards-essential technologies should also have covered patents for non-essential technologies, but the Arbitration Institute of Stockholm Chamber of Commerce turned down the Canadian manufacturer's claims.

Nokia, which claims around 10,000 patent families, has already pocketed $565 million in royalty payment from Cupertino-based technology giant Apple Inc to settle long-standing patent disputes.

The Finnish handset maker has also filed patent suits HTC Corporation and Viewsonic Corporation in Germany and the United States, alleging that products from these two companies breach several of its patents.

Nokia claims that it has invested around Euro 45 billion in research & development (R&D) during the last two decades.

Nokia's share shed 3.5 per cent to Euro 3.05 apiece on the Helsinki Stock Exchange.