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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 174.76+0.3%Dec 23 3:59 PM EST
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From: Ken S.4/12/2007 6:05:15 AM
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Nokia reiterates has paid royalty rate of under 3 pct on WCDMA handsets UPDATE

(updates with Nokia position on Qualcomm talks, background)

HELSINKI (Thomson Financial) - Nokia reiterated that until 2007 it has paid cumulative royalties of under 3 pct on mobile phones based on the wideband CDMA standard under all its patent license agreements, including those made with Qualcomm up until this year.

Qualcomm, which is embroiled in a long-running legal wrangle with Nokia over licensing fees, last week disputed that claim.

The US chipmaker believes the rate is higher and has said its standard rate is about 5 pct of a handset's wholesale price.

But Nokia said: 'This number (3 pct) represents Nokia's aggregate gross royalty payments made under all the numerous patent license agreements applicable to its WCDMA handsets. It excludes infrastructure-related royalties and all royalty income collected by Nokia.'

The group also updated the market on the position it is taking in ongoing talks with Qualcomm to renew a cross-licensing deal that partially expired Monday.

'From April 9, 2007, Nokia contractually has a fully paid up license covering Qualcomm's early patents and thus those patents are licensed to Nokia royalty-free for its handsets going forward in perpetuity,' it said.

'Therefore Nokia's licensing agreements with Qualcomm for the future will focus only on the terms for Qualcomm's newer patents.'

hemscott.com
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