Qualcomm and Nokia fight over patents again

[admin_mvu]

Qualcomm and Nokia fight over patents again

Mon Jun 12, 2006 7:53pm ET
NEW YORK/HELSINKI, June 12 (Reuters) - Wireless technology company Qualcomm Inc. said on Monday it had filed a complaint with the U.S. International Trade Commission against mobile phone maker Nokia relating to six patents, the latest volley in their battle over intellectual property.

Qualcomm's complaint to the ITC asked for a ban on theimport and sale of some Nokia products, which it said included technology that infringed its patents.

Qualcomm accused Nokia, the world's biggest maker of handsets, of infringing six patents related to GSM, the most popular mobile phone system around the world.

Nokia said in a statement it would respond "as necessary" to the third legal action Qualcomm had taken against it in the last eight months.
Qualcomm's stock closed down more than 5 percent after the news.

Qualcomm expects the ITC investigation to start in July and for the case to be heard in the first half of next year.

"So much of Qualcomm's business is tied up in royalties that if the litigation starts casting uncertainty over the future investors start getting skittish," Ed Snyder of Charter Equity Research said.

Nokia said it believed the patents in the latest action were covered by a prior license agreement. The two parties are currently in negotiations about extending that agreement, which is due to expire next April.

"These repetitive legal actions, over GSM technologies that have been in the market for many years, reflect Qualcomm's concern over the current 3G UMTS patent negotiations," Nokia said.

The Finnish company added that it believed it had a very strong position in the standard for UMTS, a third-generation mobile communications system.
Nokia and Qualcomm have an acrimonious history over technology licensing and patent infringement cases. Nokia is one of a group of companies that complained last year to European regulators about Qualcomm's competitive practices.

The European Commission has not yet said whether it would launch a formal investigation of the complaints but Qualcomm's Chief Executive Paul Jacobs told the Financial Times in an interview published on Monday that he expected an inquiry

While some analysts believed that a formal investigation was widely expected among investors, others noted that Jacobs' comments may have added to investor anxiety.

"It doesn't help for Qualcomm to overtly admit that the European complaint will drag on," Snyder said.

Qualcomm said last month it had filed a suit against Nokia alleging it had infringed on two patents in Britain.