Nokia claims $1
billion Qualcomm
payments
Posted: 13-Mar-2008
[Source: Reuters]
[Nokia says in a
recent court filing it
has paid $1 billion
over 15 years for
access to Qualcomm
patents and they are
now paid up and
royalty-free.]
by Tarmo Virki,
Helsinki (Reuters) --
Nokia has paid
Qualcomm around $1
billion over 15 years
for full access to the
U.S. chip maker's
early mobile
technology patents,
the world's top
handset maker said in
court documents.
Nokia said in a
public version of a
court filing in
Delaware that the
patents are now paid
up and royalty-free,
according to the terms
of 1992 and 2001
agreements with
Qualcomm.
Qualcomm was not
immediately available
for comment.
The companies have
been at legal
loggerheads since
failing to renew a
technology license
pact that expired on
April 9, 2007.
Analysts estimate that
Nokia pays around $500
million a year for use
of Qualcomm patents
and it wants to reduce
the sum.
Qualcomm has said
that by continuing to
ship products using
its patents Nokia has
agreed to continue on
the same terms, but
Nokia said in the
court filing that the
deals between the two
firms say the
cross-licensing
agreement can only be
extended in writing.
The companies have
not disclosed the
timeframe of so-called
"early" patents, which
stem from Qualcomm's
time as the leading
developer of CDMA
wireless technology.
CDMA technology,
widely used in the
United States and some
Asian countries,
failed to gain global
adoption when
competing against
European GSM
technology -- but it
has gained wider
adoption in later,
third-generation
forms.
Nokia and Qualcomm
have more than a dozen
legal fights pending
on three continents.
Analysts see these
cases as efforts by
both companies to gain
leverage in the terms
of an eventual
license-pact renewal.
But their expensive
legal battles have
worried investors on
both sides of the
Atlantic.
(Reporting by Tarmo
Virki; Editing by
David Cowell) |