Qualcomm and Nokia:an end to the patent war

May 18, 2008, 7:11 am

   Iznuritelnaya patent war between Qualcomm and Nokia, which took place in the courts of three continents, has finally been ended on Wednesday. The company Nokia issued a press release, which reported the settlement of patent rights with Qualcomm, related to mobile technologies GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMax, LTE and several others. The agreement was the result of the final settlement of reciprocal judicial disputes between companies, including Nokia claims its own withdrawal from the package antitrust claims filed by several companies in the European Commission against Qualcomm.
According to the new 15 - year contract between the companies, Nokia has agreed to licensing and patent royalties in favor of Qualcomm for technology used by the company in Nokia mobile devices and network infrastructure equipment Nokia Siemens Networks. Moreover, Nokia has agreed not to use any of Qualcomm technology directly against the interests of Qualcomm, thus allowing Qualcomm to integrate their own technology in Nokia chipsets Qualcomm. The financial side agreement includes future royalty payments and systematic in favor of Qualcomm. Nokia has also agreed to establish ownership of several patents in favor of Qualcomm, including a number of technology standards regarding WCDMA, GSM and OFDMA.
The rest specifics financial agreements, of course, has remained outside scenes - as happens in such cases, but some analysts believed that Nokia has won in this case. Furthermore, Nokia officials argue that the patent royalties in favor of Qualcomm under the new agreement will be even lower than they had to pay under the old license.
Recall that Qualcomm chips are used near the world`s largest manufacturers of mobile equipment and carrier equipment, including Samsung Electronics, LG Electronics. Key competitors are Qualcomm Texas Instruments, Broadcom and Infineon Technologies. Nokia sought to reduce the rate of Qualcomm patent royalties from April 2007, when the previous agreement expired. Analysts estimate the size of allocations at the level of 4-5%.
Well, even a bad peace is better than a good war, but in this case the world has turned out very good, judging from the fact that left both sides satisfied. Moreover, such a positive stock does not go unnoticed by investors, resulting in Qualcomm shares on NASDAQ on the same day, climbed to 1, 6%;shares of Nokia U. S. also closed at a level slightly above the previous figures.


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