Nokia and Qualcomm settle their differences

Nokia and Qualcomm settle their differences

The agreement will result in settlement of all litigation between the companies, including Nokia's withdrawal of its complaint to the European Commission.

Under the terms of the new fifteen-year agreement, Nokia has been granted a licence under all Qualcomm's patents for use in Nokia's mobile devices and Nokia Siemens Networks infrastructure equipment. Further, Nokia has agreed not to use any of its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia's technology into Qualcomm's chipsets.

The financial structure of the settlement includes an up-front payment and on-going royalties payable to Qualcomm. Nokia has agreed to assign ownership of a number of patents to Qualcomm, including patents declared as essential to WCDMA, GSM and OFDMA. The specific terms are confidential.

The agreement must be quite a relief for Qualcomm, since the company has yet to beat Nokia in any patent litigation action, despite having filed eleven lawsuits around the world during a two-year period. As recently as March 2008, a UK High Court judge ruled in favour of Nokia after deciding that all of Qualcomm's asserted GSM patent claims were invalid and that Nokia did not need to compensate Qualcomm for these patents.

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