Nokia, the world's largest handset maker, and Qualcomm, the world's largest maker of chips that run cell phones, agreed to settle a high-stakes licensing dispute and drop all legal complaints against each other in the U.S., Europe and Asia.
The 15-year licensing deal gives Nokia rights to a wide portfolio of Qualcomm's patents. Nokia will pay Qualcomm an upfront sum and ongoing royalties, but the companies did not elaborate on the terms.
Nokia, based in Finland, said it will withdraw its antitrust complaint filed against Qualcomm at the European Commission. Nokia filed the complaint in October 2005 with five other companies, which led to a flurry of lawsuits between Qualcomm and its rivals and several regulatory probes into Qualcomm's licensing practices.
The stakes were especially high for Qualcomm, which gets about two-thirds of its profits from licensing fees on its patents. Nearly all the rest of its profit comes from making chips.
"We believe that this agreement is positive for the industry, enabling the market to benefit from innovation and new technologies," said Olli-Pekka Kallasvuo, Nokia CEO.
"I'm very pleased that we have come to this important agreement." said Paul Jacobs, Qualcomm CEO. "This agreement paves the way for enhanced opportunities between the companies in a number of areas."
The deal, which ends all legal cases between the two firms, covers the world's most widely used mobile phone technologies and some key emerging ones. The companies did not reveal specific financial details.
