(RTTNews) - Qualcomm Inc. (QCOM), a provider of digital wireless
telecommunications products and services, reported the filing of an arbitration
demand with the American Arbitration Association on its license dispute with
Nokia. The company, in its appeal, has sought a ruling that would require
Cellular Telephone Company, Nokia to extend its current license agreement with
Qualcomm, which expires on April 9, 2007, for the continued usage of the
company's patents in Nokia's CDMA cellular handsets. The company further
requested for a ruling demanding Nokia to pay the same royalties mentioned in
the present license agreement, for the extended term. The company also sought
permission to cancel the license agreement with Nokia if Nokia asserts patent
infringement claims against the company.
However, the San Diego, California based Qualcomm said Nokia, in its latest
statement, has indicated its obligation to compensate Qualcomm for the extended
use of its patents beyond the April 9 expiry date. The company further noted
that even though Nokia agreed to pay an arbitrary sum for the extended use of
the patents, it offered only a part of the original price for the extensive
patent portfolio and does not wish to comply with all of the terms of the
existing agreement. In response to Nokia's claim of not having paid Qualcomm
more than 3% royalties on WCDMA products sold until 2007, Qualcomm asserted that
the statement was misleading as Nokia had been paying more than 3% royalties to
the company on WCDMA products.
Additionally, Qualcomm believed that Nokia has contradicted its policy on rates
for Qualcomm patents it claimed to be fair and reasonable, by its unjust demands
for royalties for its own patents.
Qualcomm further noted that, in its current license agreement for CDMA products
signed with Nokia in July 2001, Nokia holds a right to extend the agreement
exercisable until the end of 2008. However, if the agreement is not extended
beyond its expiry date, Nokia's rights to sell certain subscriber products under
most of Qualcomm's patents will expire, added the company.
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