Google wants its video coding programme, called VP8, to be a core part of the WebM project that is making web-centred video production tools.
Nokia, however, says it owns key patents that define parts of VP8 and has filed an official objection to Google's plan.
According to the BBC, the independent WebM project was started to create video production and playback software specifically designed for use online.
Many of the tools currently used to do this are cut-down versions of similar programmes used in TV stations and can be expensive to use.
By contrast, WebM tools would be free to use and the software would take account of the needs of websites, browsers and smartphones, the report said.
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