Sierra Wireless filed a complaint against Nokia with the European Commission (EC) for anticompetitive behaviour with regard to its “dominant position” in GSM and 3G standard essential patents.

The Canadian company claimed Nokia is discriminating against it by charging “unfavourable and unreasonable” royalty terms to use standard essential patents that are putting it at a competitive disadvantage.

In addition, the Finnish company has apparently refused to licence 3G standard essential patents for wireless modules to Sierra Wireless despite repeated requests and an obligation to do so.

The complaint also alleges that the Finnish company applies different and unfair royalty rates to companies for the same standard essential patents to make identical wireless modules.

Nokia’s behaviour breaches Article 102 of the Treaty on the Functioning of the European Union which outlines the policies and operation of the EU, according to Sierra Wireless.

The Finnish company is also accused of failing to meet its obligation to grant standard essential patent licences on a fair, reasonable and non-discriminatory (FRAND) basis as required by the European Technology Standards Institute (ETSI).

The Canadian company said it has tried to resolve the royalty rate issue with Nokia, but with no clear response, decided to file a complaint to the EC.

Sierra Wireless wants the EC to reveal the pricing imposed on other licensees, sanction Nokia and end its breaches of FRAND regulations, and require the company to grant patent licences on FRAND terms.

The US Federal Trade Commission (FTC) has been made aware of the EC complaint with Sierra Wireless requesting it open an investigation into Nokia breaching FRAND rules and US fair trade and monopoly laws.

“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,” said Pierre Cosnier, senior director of legal affairs for Sierra Wireless.

Along with Qualcomm and Ericsson, Nokia is one of the top patent holders in the mobile industry, having invested billions of Euros in research and development over several decades.