Nokia, Qualcomm inevitably make a patent deal

24 Jul 2008
00:00

Nokia and Qualcomm have finally - inevitably - settled their patent disputes out of court.

The two have exchanged lawsuits in several jurisdictions across the Atlantic over the past two years because of the expiry in April 2007 of their licensing agreement.

Under terms of the settlement, Nokia will make an up-front payment to Qualcomm and pay ongoing royalties. It is licensed to use Qualcomm technologies in its mobile devices and in Nokia Siemens Networks infrastructure.

Qualcomm is allowed to integrate Nokia technology into its chipsets.

The deal covers GSM, EDGE, CDMA, W-CDMA, HSDPA, OFDM, WiMax, LTE and other technologies, the companies said.

Other financial terms are confidential, but the agreement is a much bigger deal for chip specialist Qualcomm than for Nokia, the 800-lb gorilla of the mobile market.

Investors clearly think so - Qualcomm's stock shot up 18.7% to $53.20 in after-hours trading.

Qualcomm has been embroiled in a number of legal disputes in recent years, most spectacularly losing a patent dispute against Broadcom. The US chip firm has actually set aside an entire part of its website for "legal newsroom".

The announcement followed the release of Qualcomm's quarterly result, which although showed a 6% fall in net income, came within guidance.

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