Qualcomm is the largest user of Nokia technology and patents

[Nikos Kartalis]

Nokia rejected Qualcomm's public statements that it does not use Nokia patents. Nokia has for the last fifteen years contributed its technology to industry standards, such as GSM, WCDMA and CDMA. If Qualcomm's products comply with industry standards it is in the same position as any other supplier of mobile technology in that it needs access to Nokia's patents covering standardized technologies.

Nokia believes that Qualcomm is currently using over one hundred of Nokia's GSM/WCDMA and CDMA2000 essential patents in its chipsets. Nokia and Qualcomm are yet to agree on the compensation payable by Qualcomm for such patents. With its more than 200 million units annually, Qualcomm is the largest user in the world of Nokia's technology and patents. Nokia's request for royalty payments from Qualcomm is based on royalty levels which are fair, reasonable and non-discriminatory (FRAND).

Since the early 1990's Nokia has invested over $35 billion in R&D and built one of the wireless industry's strongest and broadest IPR portfolios with over 11,000 patent families.

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.

Nokia and Qualcomm continue to be in cross-license negotiations aimed at reaching a mutually acceptable agreement in a timely manner.