The tension is getting thicker between Qualcomm and Nokia over negotiations to renew a mutual licensing agreement that is due to expire in a year. Qualcomm has brought a patent-infringement lawsuit against Nokia in the U.K., alleging that Nokia infringes on two patents there related to GPRS/EDGE devices that don't have any W-CDMA capabilities. Qualcomm is looking for an injunction and damages for phones already sold. A similar suit was filed in the U.S. against Nokia last November. UBS believes the suit is part of a negotiation ploy with Nokia over a licensing agreement set to expire next year that allows Nokia to sell CDMA and W-CDMA handsets and Qualcomm to sell GSM chips that rely on Nokia patents. The two are at a standoff over renewed terms. The lawsuits are similar to a move Ericsson and Motorola made when they were trying to negotiate terms with Qualcomm in the late 1990s, UBS notes. Watch the lawsuits and counter suits fly in the next couple of months.
To read more about Qualcomm's lawsuit against Nokia in the U.K.:
- check out this article from The Register