After a nearly three-year legal battle, Qualcomm and Nokia on Wednesday reached a 15-year deal regarding Qualcomm patents.
Under the deal, Nokia has been granted a Qualcomm license that lets the handset maker include Qualcomm's patented technology in its mobile devices and infrastructure equipment. Nokia will make an undisclosed up-front payment and ongoing royalty payments to Qualcomm as part of the agreement.
Nokia has also agreed to acknowledge the Qualcomm owns patents relating to WCMDA, GSM, and OFDMA.
The deal officially concludes any litigation between the companies, including Nokia's complaint to the European Commission.
"This agreement paves the way for enhanced opportunities between the companies in a number of areas," Paul E. Jacobs, chief executive of Qualcomm, said in a statement.
"The positive financial impact of this agreement is within Nokia's original expectations and fully reflects our leading intellectual property and market positions," said Olli-Pekka Kallasvuo, CEO of Nokia.
The agreement comes a day after a German Federal Patent Court ruled that a Qualcomm GSM patent dispute against Nokia was invalid.
Qualcomm first sued Nokia in November 2005 for infringing on 11 Qualcomm patents and one patent owned by Qualcomm subsidiary SnapTrack. Qualcomm said Nokia was infringing on its patents by making and selling products in the United States based on the GSM standard, and requested monetary damages and an injunction against the sale of infringing Nokia products.
GSM is a 2G standard, while CDMA is 3G. GSM has been enhanced over the years to support improved data capabilities, which has produced the GPRS and EDGE standards. Qualcomm said that Nokia's GSM, GPRS, and EDGE products infringed on its patents.
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