Nokia has a service called MOSH that is essentially a P2P service in your pocket. People can upload applications, pictures, videos and even music to share with everyone. This scares the pants off Warner Music because piracy is what prevents these guys from sleeping at night. They are not going to cooperate with Nokia’s Music Store. I can only imagine what Nokia’s Multimedia division is saying (read: screaming) to the MOSH people.
My best guess of what is really happening is that Warner just wants more money than Nokia’s initial offer would have given them. We will all be reading a press release within six months that states Warner Music is proud to join Nokia’s Music Store. This of course depends on how much Nokia wants their music store to succeed and how serious they are about the claim that they want to offer all the music that is out there.