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Qualcomm Rejects Nokia's 'Partial Payment' For Patents

Nokia maintains that Qualcomm is charging too much for its IP portfolio while Nokia's patents have grown in value.
The Qualcomm-Nokia intellectual property battle became more intractable than ever Thursday as Qualcomm reported it rejected Nokia's latest payment offer.

The $20 million quarterly compensation and the terms upon which Nokia conditioned the payment fell far short of the $125 million Nokia reportedly has been paying to use Qualcomm's intellectual property.

"The attempted payment also represents only a small fraction of the well established value of Qualcomm's patent portfolio -- a value which has been repeatedly validated by the more than 70 royalty-bearing WCDMA license agreements Qualcomm has signed with the world's largest vendors of wireless products," Qualcomm said in a statement.

The two mobile phone firms have been embroiled in IP litigation for months and important licensing pacts between the two expired earlier this week.

Nokia maintains that Qualcomm is charging too much for its IP portfolio while Nokia's patents have grown in value.

The two firms have been suing each other in different jurisdictions in the U.S. and Europe for months and Finland's Nokia has enlisted other European vendors including wireless infrastructure pacesetter Ericsson in complaining to the European Commission over what they maintain are Qualcomm's overpriced royalties.

Ericsson's chief executive Carl-Henric Svanberg spoke out on the deepening patent conflict earlier this week and said he hoped "patent fees cannot become an obstacle for the development of this industry." According to media reports, Svanberg said also: "Patent payments in the industry are split in a wrong way. Traditional and larger players, like Qualcomm, can demand too high payments while others don't get even what they deserve."

Qualcomm has recommended that the patents dispute be mediated by the American Arbitration Association.

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