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12 minutes ago by addiegibson on topsyZDNet is available in the following editions:
Following the expiration of the licensing agreement Monday, Qualcomm files an arbitration demand asking for continued payments from the handset maker.
A key licensing agreement between the world's number one mobile handset maker Nokia and mobile giant Qualcomm, which prompted a bitter court battle between the two, has expired.
The agreement, under which Nokia licensed patents pertaining to the CDMA and W-CDMA mobile standard, has been the subject of protracted legal wrangling between the two. The licensing deal officially ran out on April 9.
Qualcomm has now filed an arbitration demand with the American Arbitration Association, claiming Nokia's continued use of the Qualcomm-patented technology in handsets constitutes an acceptance by the handset maker to continue licensing the patents. As such, the arbitration demand states Nokia must continue its payments to Qualcomm.
The arbitration demand requests Qualcomm's right to terminate all of Nokia's patents rights and licenses if the Finnish manufacturer sues Qualcomm for patent infringement after April 9.
Nokia last week made a royalty payment to Qualcomm of US$20 million, which it said would cover patent licensing for the second quarter of this year.
But the payment has not been entirely welcomed by Qualcomm, which said: "Nokia has no more right to unilaterally set a price than the average consumer has a right to walk into a store, take a product off the shelf, and walk out with it after leaving only a fraction of the established price on the counter. Leaving some money on the counter does not make the act any less unlawful."
A Nokia spokesman told Silicon.com the two mobile giants are still talking and hope to come to a timely resolution. "These types of negotiations take time and it would be premature to speculate on the outcome while we are in negotiations," he said.
Jo Best of Silicon.com reported from London.
EcommerceInternet Jobs ZDNet Asia: Wanted Architecture security IT pros ยท Spore directs $3.9B to enhance productiv... http://bit.ly/cp11MK
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