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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (13322)	7/3/2001 4:15:26 PM
From: S100	Respond to of 34857

Qualcomm settles 3G dispute with Nokia By Dan Roberts, Telecommunications Correspondent Published: July 3 2001 18:18GMT \| Last Updated: July 3 2001 18:45GMT Qualcomm, the US mobile phone chip designer, has settled a long-running dispute with Nokia, the world's largest handset manufacturer, over the technology behind third-generation phones. Their agreement over intellectual property rights represents a breakthrough in the battle between competing US and European mobile phone standards and helped Qualcomm shares climb six per cent to $63.7 in New York. It also allows Nokia to complete the delivery of third-generation infrastructure, vital to European mobile phone operators. However, it remained unclear last night what concessions either side was forced to make in their dispute over royalty payments due to Qualcomm for its work on technology known as CDMA (Code Division Mobile Access). CMDA lies at the heart of both major standards used to operate the next, or third, generation of mobile phones but has been more popular in the US than Europe as a second generation technology. Qualcomm was therefore keen to extract higher royalties from European manufacturers as they evolved from a rival second-generation standard known as GSM to a third-generation standard built around CDMA. Nokia argued that an existing agreement dating back to 1992 for second-generation CDMA equipment covered third-generation technology too and meant it did not need to increase licence payments. On Tuesday, the two companies said they had agreed a new deal covering all intellectual property surrounding CDMA technology used in mobile phone base stations. Nokia said it would continue to pay royalties to Qualcomm at the same rate established under the 1992 agreement and did not believe there was any need for further negotiations on royalties for handsets. Qualcomm declined to comment, and neither side would reveal the terms of the licence agreements. news.ft.com