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Qualcomm: Keeping Nokia
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Qualcomm expects total shipments of CDMA phones to jump 30 percent to about 507 million in 2008. Shipments of wide-band CDMA phones, the technology at the center of the Nokia dispute, will overtake regular CDMA shipments for the first time next year, rising 56 percent to 284 million.
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Qualcomm faces numerous court cases in the coming year involving both Broadcom and Nokia and the chip company’s attorneys have characterized the pending outcomes in those cases as playing a major role in crosslicensing negotiations between Qualcomm and the other parties. Cross-licensing agreements, although difficult to reach, typically preclude serial litigation between rivals or in vendor-customer relations. Both Broadcom and Nokia have consistently said that each legal case is based on its individual merits.
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Qualcomm filed its complaint on June 9, 2006 alleging infringement by Nokia of six Qualcomm patents. Prior to the hearing, which began on September 10, 2007, Qualcomm voluntarily withdrew three of the six patents from its complaint. The remaining three patents relate to an invention Qualcomm claims it made when developing CDMA technology. Qualcomm declared the three remaining patents as essential to the GSM standard and subsequently attempted to withdraw its declaration on one of those patents.
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Although 1992 represented the third straight year in which Qualcomm suffered a net loss, its sales continued to climb and its future continued to brighten. In 1992 it prepared for the rollout of CDMA in 1993 by signing a technology agreement with Nokia and a licensing agreement with Northern Telecom; by promoting CDMA in Korea, Australia, Switzerland, and Germany; and by opening regional offices in Pittsburgh, Dallas, Atlanta, Salt Lake City, and Washington, D.C. It secured a license from the FCC to tailor CDMA technology for the new personal communications service (PCS) niche of the cellular industry and created a PCS corporate group to create applications for this market. By bundling traditional cellular phone service with paging, messaging, fax, and email service all from a single all-purpose "pocket communicator," PCS appeared to have become the future of CDMA and of the cell phone industry as a whole.
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— Qualcomm today announced that the District Court in The Hague has dismissed a complaint filed by Nokia seeking to limit Qualcomm’s intellectual property rights. In the action, Nokia sought a declaration from the court that Qualcomm’s European patents are exhausted with respect to chips placed on the European market by Texas Instruments (TI) in light of the Patent Portfolio Agreement entered into between Qualcomm and TI in 2000.
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A legal victory for either Qualcomm or Nokia may be required to break the deadlock in talks over a licensing deal. The companies have sued each other, citing patent infringement, after an earlier agreement expired.
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