2008: Nokia Corp. v. Qualcomm Inc., CA2330, Delaware Chancery Court (Wilmington, DE)
Standing Down and Consolidating ... The companies will combine the case in Delaware Chancery Court with an arbitration currently pending in Los Angeles. A court order outlined what it called a ``stand down'' on patent infringement litigation. The two companies agreed to halt procedures in patent lawsuits and not to file new patent litigation. The agreement doesn't cover a case pending before the U.S. International Trade Commission in Washington, a dispute in the U.K (already tried awaiting decision). or pursuit of antitrust claims. The adversaries will go to trial July 21 in Delaware.
• "We hope that a resolution of these issues can help facilitate a dialogue that will ultimately result in an agreement between the two companies." - QUALCOMM Spokeswoman -
• [The issue before the court is] "the proper interpretation of the parties' 2001 cross-license agreement and certain parts of standardization rules. ... The Delaware case is one step which could help the companies reach common ground on certain issues that are in dispute. However, it is unlikely the case will resolve the overall licensing negotiations between the companies." - Nokia Spokeswomen -
>> Nokia, Qualcomm Will `Stand Down' on Patent Suits
Phil Milford (Wilmington, DE)
Susan Decker (Washington, DC)
Bloomberg
February 23, 2008
tinyurl.com
Nokia Oyj, the world's biggest maker of mobile phones, and microchip-producer Qualcomm Inc. agreed to put some of their patent-infringement disputes on hold pending resolution of contract claims by a Delaware judge.
Qualcomm rose as much as 5 percent on the news and closed up $1.05 to $43.47 in Nasdaq trading. American depositary receipts of Nokia, each worth one ordinary share, rose as much as 2.3 percent and closed up 63 cents to $36.84 in New York Stock Exchange composite trading.
The two companies have been fighting in courts on three continents as they try to work out a licensing agreement on the newest generation of chips that run mobile phones. A previous licensing agreement expired last April.
"The Delaware case is one step which could help the companies reach common ground on certain issues that are in dispute," said Nokia spokeswoman Laurie Armstrong in an e-mail. "However, it is unlikely the case will resolve the overall licensing negotiations between the companies."
The companies will combine the case in Delaware Chancery Court with an arbitration currently pending in Los Angeles. Nokia, based in Espoo, Finland, sued Qualcomm in Delaware Chancery Court in 2006, claiming it's entitled to use Qualcomm chip inventions on "fair, reasonable and non-discriminatory terms."
"We hope that a resolution of these issues can help facilitate a dialogue that will ultimately result in an agreement between the two companies," Qualcomm spokeswoman Christine Trimble said in an e-mail.
Revenue: $3.1 Billion: San Diego-based Qualcomm, which surpassed Texas Instruments Inc. last year to become the world's largest maker of chips for mobile phones, collected $3.1 billion or about a third of its revenue for the year ended Sept. 30 from licensing fees.
The issue before the court is "the proper interpretation of the parties' 2001 cross-license agreement and certain parts of standardization rules," Armstrong said.
The order outlined what it called a ``stand down'' on patent infringement litigation. The two companies agreed to halt procedures in patent lawsuits and not to file new patent litigation. The agreement doesn't cover a case pending before the U.S. International Trade Commission in Washington, a dispute in the U.K. or pursuit of antitrust claims, according to a document signed today by Delaware Chancery Court Judge Leo Strine Jr.
Strine will have the same authority as an arbitration panel that was going to hear some of the claims in California, and the companies agreed to terminate the arbitration within a week.
Lawyers for Nokia and Qualcomm will file court documents that lay out how the case will proceed, according to the order. Strine earlier this month set trial for July 21.
Nokia and Qualcomm are involved in patent litigation in courts in California, Wisconsin, Texas, the U.K., Germany, the Netherlands, France, Italy and China, according to court papers.
The case is Nokia Corp. v. Qualcomm Inc., CA2330, Delaware Chancery Court (Wilmington). ###
The Reuters View from Helsinki ...
>> Nokia: Delaware Case Unlikely To Solve Qualcomm Row
Nokia has repeatedly said it was looking for a timely solution to the battle, but not at any cost.
Tarmo Virki (Helsinki)
Reuters
February 24, 2008
tinyurl.com
Cellphone maker Nokia (NOK1V.HE) said on Sunday its agreement in a U.S. court in Delaware with Qualcomm was unlikely to solve the major legal battle over patent fees between the two technology heavyweights.
Nokia and Qualcomm (QCOM.O) agreed late on Friday to consolidate their arbitration case in Los Angeles with the legal case in Delaware, on topics of that case, and put on hold ongoing and potential patent litigations between the two firms.
Shares in Qualcomm rose more than 5 percent on the news on Friday, and closed 2.5 percent higher at $43.47.
"The Delaware case is one step which could help the companies reach common ground on certain issues that are in dispute; however, it is unlikely the case will resolve the overall licensing negotiations between the companies," said Nokia spokeswoman Anne Eckert.
The issues to be decided in Delaware include interpretation of their 2001 technology licensing agreement, and certain parts of standardization rules, as well as topics of the arbitration filing made by Qualcomm.
Nokia, the world's largest cellphone maker, and San Diego-based chip firm Qualcomm have more than a dozen legal fights pending on three continents. The two firms' expensive legal battle is worrying investors and the industry on both sides of the Atlantic.
The companies have been at legal loggerheads since they failed to renew a part of their 2001 technology licensing pact that expired last April. Analysts have estimated Nokia pays around $500 million to Qualcomm annually for patents and wants to cut the sum.
Qualcomm's head of European operations, Andrew Gilbert, told Reuters in an interview earlier this month, the company did not see smaller payment as an option.
"We want them to pay what they should be paying ... as soon as possible," Gilbert said in an interview at Mobile World Congress trade show. ###
• The Delaware Court of Chancery here ...
courts.delaware.gov
• This is Nokia's original August 9, 2006 filing in Delaware Chancery Court ...
qualcomm.com
• This is from QUALCOMM's latest Quarterly SEC 10-Q Filing ...
>> Nokia Corporation and Nokia Inc. v. QUALCOMM Incorporated: On August 9, 2006, Nokia Corporation and Nokia Inc. filed a complaint in Delaware Chancery Court seeking declaratory and injunctive relief relating to alleged commitments made by the Company to wireless industry standards setting organizations. The Company has moved to dismiss the complaint. On April 12, 2007 and June 5, 2007, the Company filed counterclaims seeking declarations that, among other things, the Company’s 2001 license agreement with Nokia fulfilled and/or superseded any ostensible obligations to offer or grant patent licenses to Nokia allegedly arising from the Company’s participation in certain standards setting organizations. Both parties have moved to dismiss the other’s complaints, but the parties have also discussed and are negotiating, at the Court’s suggestion, an agreement in which the arbitration filed by the Company would be consolidated into the Delaware case discussed above. ###
Progress has been made.
- Eric - |
