Qualcomm, Nokia Patent Agreement Ends Next Week
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."
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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...
The dispute is that WCDMA was developed independent of Qualcomm, and it was found that patents were infringed, ...
Nokia Patent agreement