Nokia & Qualcomm Enter Into a New Agreement

ESPOO and SAN DIEGO - Nokia and Qualcomm announced that they have entered into a new agreement covering various standards including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMAX, LTE and other technologies.

According to a press release by Qualcomm, the agreement will result in settlement of all litigation between the companies, including the withdrawal by Nokia of its complaint to the European Commission.

Under the terms of the new 15-year agreement, Nokia has been granted a license under all Qualcomm's patents for use in Nokia mobile devices and Nokia Siemens Networks infrastructure equipment.

Further, Nokia has agreed not to use any of its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia's technology into Qualcomm's chipsets.

The financial structure of the settlement includes an up-front payment and on-going royalties payable to Qualcomm.

Nokia has agreed to assign ownership of a number of patents to Qualcomm, including patents declared as essential to WCDMA, GSM and OFDMA. The specific terms are confidential.

"We believe that this agreement is positive for the industry, enabling the market to benefit from innovation and new technologies," CEO of Nokia Corporation Olli-Pekka Kallasvuo said.

"The positive financial impact of this agreement is within Nokia's original expectations and fully reflects our leading Intellectual Property and market positions," he added.

"I'm very pleased that we have come to this important agreement," Qualcomm CEO Dr. Paul Jacobs said.

"The terms of the new license agreement, including the financial and other value provided to Qualcomm, reflect our strong Intellectual Property position across many current and future generation technologies,” he continued.

“This agreement paves the way for enhanced opportunities between the companies in a number of areas," Jacobs pointed out.

Nokia is the world leader in mobility, driving the transformation and growth of the converging Internet and communications industries.

Qualcomm Incorporated is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies.