Nokia and Qualcomm Settle On Courthouse Steps
From the Los Angeles Daily Journal: Qualcomm, Nokia Settle Licensing Dispute
By Craig Anderson
Daily Journal Staff Writer
San Diego-based Qualcomm Inc. will get a big payout from Nokia Corp. to settle a long-running dispute over how much money it should receive to allow the Finland-based cell phone maker to license its patents.
The settlement was announced shortly after a trial between the two companies, set to begin Wednesday in the Delaware Court of Chancery, was abruptly postponed.
News of the 15-year licensing agreement sent Qualcomm stock soaring more than 18 percent in after-hours trading on Wednesday afternoon. Specific financial terms were not disclosed, but the deal includes an upfront payment and ongoing royalties.
As part of the settlement, Nokia will drop an antitrust complaint it had filed against Qualcomm before the European Commission.
The major sticking point between the companies were the royalties charged by Qualcomm to use its patented technology in Nokia cell phones and other devices. Nokia argued that the rates were too high.
"I'm very pleased that we have come to this important agreement," said Dr. Paul E. Jacobs, CEO of Qualcomm in a prepared statement.
"The terms of the new license agreement, including the financial and other value provided to Qualcomm, reflect our strong intellectual property position across many current and future generation technologies. This agreement paves the way for enhanced opportunities between the companies in a number of areas."
As part of the deal, Nokia has been granted a license under all Qualcomm's patents for use in Nokia mobile devices and Nokia Siemens Networks infrastructure equipment, according to the announcement. Nokia will not use any of its patents "directly" against Qualcomm.
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