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Qualcomm, Nokia Patent Agreement Ends Next Week

Article Comments  10  

Apr 2, 2007, 12:38 PM   by (staff)

Nokia and Qualcomm are still at odds over the terms of a new license agreement for 3G technologies, even as the current agreement is set to run out in one week. Qualcomm. Because WCDMA incorporates CDMA technology, Nokia and all other manufacturers who sell 3G handsets must pay royalties to Qualcomm, which owns CDMA patents. Nokia's leading share of the 3G market could see that company pay $1 billion per year in royalties at current rates according to analysts. Nokia claims rates should be lower because Qualcomm's patents play less of a role in WCDMA than CDMA. Qualcomm has not offered a counter-argument but CEO Paul Jacobs says the company is hoping to "avoid Armageddon and a massive escalation."

more info at MSNBC »



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Apr 2, 2007, 2:31 PM

Nokia's CFO

Nokia's CFO said "You don't want everybody to have 4.5 per cent royalty rates so that when you add it up the device has an unbearable tax on it."

First, I don't know if his sentence really makes sense. Second, this is a key component of ALL CDMA devices. Call it a tax or whatever. It is a price you pay to use this technology. All phone vendors that use this technology pay this "tax", so it is an even playing field within each carrier. This *should* create a price advantage for the GSM carriers. If the CDMA profit margin is too small because of attempts to compete with the GSM prices, then don't make CDMA phones (not like Nokia actually makes them anyway). The carrier decides which technology to use. If it costs the phone vendor mo...
This is actually about Nokia wanting smaller royalties due on WCDMA devices (GSM 3g), not Nokia complaining about their CDMA division(like BT Guy said, Pantech) paying royalties
The patent dispute is not with CDMA2000 phones, it is with WCDMA, or Wideband CDMA, the progression in the GSM family of technologies.

The dispute is that WCDMA was developed independent of Qualcomm, and it was found that patents were infringed, ...

Apr 2, 2007, 3:44 PM

Nokia Patent agreement

Something tells me Qualcomm just wants to make money regardless of other companies contributions to WCDMA. Why can't QC just let it go? Yes, we know greed. It's bad enough the royalty payments vary from vendor to vendor. Eventually there will be more carriers moving into UMTS as they have started already. Broadcomm was right on their gripes and Nokia is just staying the course and not budging on this patent issue. Keep up the great work Nokia. Broadcom and Nokia with be the two big giants in the future. Keep up the great work Nokia and Broadcom. ss.php?fm=p&ff=2152&fi=n#
well put...except i don't think QC is going anywhere
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