Nokia, Qualcomm End Patent Disputes - InformationWeek

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7/23/2008
08:08 PM
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Nokia, Qualcomm End Patent Disputes

The companies have entered into a 15-year agreement regarding wireless technology patents, and have dropped all litigation.

On the heels of their courtroom drama Wednesday, Nokia and Qualcomm announced a new licensing agreement regarding various wireless technologies, and have settled all litigation between the companies.

Under the terms of the 15-year agreement, Nokia has been granted a license for all of Qualcomm's patents to use in mobile phones and its Siemens Networks infrastructure equipment. The patents regard GSM, EDGE, CDMA, HSDPA, OFDM, WiMax, LTE, and other technologies.

Additionally, Nokia has agreed to not use any of the patents directly against Qualcomm.

"We believe this agreement is positive for the industry, enabling the market to benefit from innovation and new technologies," said Olli-Pekka Kallasvuo, CEO of Nokia, in a statement. "The positive financial impact of this agreement is within Nokia's original expectations and fully reflects our leading intellectual property and market positions."

The legal settlement also includes an up-front payment and ongoing royalties to Qualcomm. The phone manufacturer will also be assigning ownership of patents to Qualcomm, including patents declared essential to WCDMA, GSM, and OFDMA. Financial details were not disclosed.

The new deal and settlement come as the long-awaited court trial between the two companies was set to begin. Nokia had been paying substantial royalties for various Qualcomm patents, and sought legal means to reduce the rate. The phone manufacturer was paying an estimated $500 million a year to Qualcomm to license its patents.

The case stemmed from a 1992 licensing agreement between the companies, and the battle had garnered so much interest that Courtroom View Network was poised to televise the trial over the Internet for a $400 fee.

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