Nokia Pays Qualcomm $20m for UMTS

By Ed Oswald | Published April 5, 2007, 11:37 AM

Although it means essentially nothing to the ongoing litigation between the two companies, Nokia said Thursday it had made a $20 million payment to Qualcomm for the use of its UMTS patents.

The company also plans to make future payments and would announce them as necessary. Nokia said the payments do not extend an agreement over patents that partially expires on April 9.

It noted that most of Qualcomm's UMTS patents exist only in the United States, and in many of Nokia's biggest markets for the technology, Qualcomm holds few or no patents.

Nokia said the payments are for licenses that Qualcomm provides through the European Telecommunication Standardization Institute (ETSI), which controls UMTS. It feels the sum is fair, and said it is well positioned to offset claims by its competitor to ask for more money.

Additionally, with the agreement's expiration, several of the earliest patents would also expire as well, meaning Qualcomm could no longer collect royalties on the technology.

"It is important to note that as of April 9, 2007, Qualcomm's entire chipset business becomes exposed to Nokia's extensive GSM, WCDMA and CDMA patent portfolios and Nokia will use all rights from those portfolios when defending itself against any new Qualcomm litigation," Nokia chief financial officer Rick Simonson warned.

Thursday's announcement is only the latest in a string of suits and public relations efforts by both companies.

Most recently, Qualcomm added five additional claims to its patent infringement suit against Nokia earlier this week. Prior to that, Nokia filed suit in the Netherlands and Germany in March arguing that Qualcomm was attempting to get paid twice for use of its technologies.

View comments by with a score of at least

Google Chrome 4: Yes, it's fast, but is it usable?

As Betanews readers have responded to our stories about Chrome's JavaScript superiority...Does that mean we'd actually use this browser? Well...

Video: Netflix on PlayStation 3

Netflix has come to the PlayStation 3 via Blu-ray and BD-Live.

Verizon Wireless launches new Android, Chocolate, and ruggedized phones

The lower-priced Eris joins the Droid, while the Chocolate gets a touchscreen and more music playback.

Early sales figures for Windows 7 nicely high, but do we know why?

Fans of triple-digit surges in figures quoted by Betanews will love this one, as it appears Microsoft rediscovered how to pull off a software launch.

Myka announces its latest Linux-based 'net top box'

Myka's ION brings Boxee, XMBC, and much more to HDTVs.

What hath Mac wrought? A remembrance after a quarter-century

The reason there's a Macintosh today is not because of some brilliant flash of engineering genius, but because Apple had the audacity to learn from its mistakes.

Early build of Moblin 2.1 improves connectivity, but not device support

The Linux Foundation's Atom-centric OS yesterday received a major overhaul with the project release of Moblin 2.1 for netbooks and nettops.

The iPhone's China syndrome: Sales of 5,000 and climbing

There's actually a country where Apple's device is not a godsend, where sales can be measured in the dozens.

New European counterpart to FCC will ensure 'a more neutral net'

Late Thursday night, the ruling telecom administrators of the EU's member nations signed away their final authority to a new entity overseen by the EC.

Sophos study suggests Windows 7 UAC's default setting is self-defeating

Without any anti-virus installed, a Sophos test showed, User Account Control was only capable of thwarting just one malware package out of ten samples chosen.

Indiscreet tweet trips awareness of Web SSL vulnerability

A group of high-level security engineers had been making progress on thwarting a low-level threat to the Web, until somebody blurted it all out on Twitter.