Qualcomm Says Nokia Infringed Six Patents
Qualcomm Inc.’s legal clashes with Nokia Corp., which have become more bitter during the last few months, have heated up again.
In a complaint filed with the U.S. International Trade Commission on Friday, San Diego-based Qualcomm alleged that the Espoo, Finland-based wireless manufacturer infringed six Qualcomm patents.
The move strains an already tense relationship between the two. Despite a licensing agreement binding the parties, Qualcomm has filed several lawsuits against Nokia, putting their future relationship in jeopardy.
Qualcomm, which makes chips for cellphones and holds the patents on key wireless technologies, seeks to halt the importation and sale of some Nokia handsets. The company says it expects the investigation to begin in July and the case to be tried in the first half of next year.
Nokia, the world’s largest cellphone maker, said Monday that it was evaluating the filing and “will respond as necessary.”
The legal action revolves around the use of global standard for mobile communications, or GSM. It is the dominant wireless technology in Europe and Asia and is also used in the U.S. by carriers such as Cingular Wireless and T-Mobile USA.
This is the third complaint that Qualcomm has filed against Nokia. In November, Qualcomm filed a suit in San Diego alleging that Nokia infringed 11 of its patents. Last month, Qualcomm filed a similar suit in Britain.
Nokia argues that many of the allegedly infringed patents fall under its existing licensing agreement with Qualcomm. The deal expires in April and the companies have been working to extend or replace it.
The legal actions add uncertainty over whether a new deal will be struck, which was a focus of analysts and investors at Qualcomm’s last analyst conference in May. At the time, Chief Executive Paul Jacobs said the patent-related litigation would not distract the company from day-to-day operations.
Qualcomm holds many patents for second-generation cellphone technology, particularly for code-division multiple access, or CDMA, and derives a fair amount of revenue from licensing agreements.
The company has fewer patents covering third-generation networks that are rolling out, although Jacobs has argued that the number of patents will not affect the company’s royalty revenue.
In addition to Nokia, Qualcomm has a bitter patent dispute with Irvine-based Broadcom Corp., with various lawsuits filed by both sides.
Qualcomm shares fell $2.25 to $41.19. Nokia’s U.S. shares fell 49 cents to $19.57.
