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Nokia, Qualcomm Extend 3G Technology License

Electronic News -- Electronic News, 7/3/2001

Mobile phone maker Nokia Corp. has extended its next generation technology cross-licensing deal with san Diego-based Qualcomm Inc., Electronics Weekly, an e-inSITE affiliate, reports.

Valued as a multi-million dollar agreement, the deal also means that Nokia (nyse: NOK) has been granted a royalty-bearing license under Qualcomm's (nasdaq: QCOM) patents to make and sell infrastructure equipment for all wireless systems based on Qualcomm's Code Division Multiple Access (CDMA) digital radio technology.

Qualcomm is granted rights under Nokia's CDMA-related and other patents to market and sell CDMA components, including multi-mode ICs.

"We welcome the enhancement of our longstanding technology relationship with Qualcomm and we look forward to the success of new, global third generation wireless solutions," said Yrjo Neuvo, chief technology officer at Nokia Mobile Phones.

CDMA is the digital radio protocol which will be the basis of 3G mobile phone systems including the European UMTS standard.

Qualcomm is a pioneer of the technology and holds a number of key patents. Manufacturers expect to introduce CDMA-based handsets by 2003 or 2004.

"We welcome the enhancement of the original Nokia-Qualcomm patent agreement to include all CDMA standards for infrastructure equipment as well as subscriber equipment," said Steve Altman, executive vice president of Qualcomm.

As part of the new agreement, Nokia will continue to pay royalties to Qualcomm for subscriber equipment at the same rates established by the terms of the original cross-license agreement in 1992, irrespective of the CDMA standard implemented. 

 

Electronics Weekly is a United Kingdom based affiliate.