Now I’ve been reading a lot of articles lately that basically say Nokia and Qualcomm have issues. They’ve all been vague, lacking content and haven’t included a lot of back story. This article from Infoworld outlines the issue perfectly, clearly, and concisely. They come to a conclusion that, after all the material I’ve read on this topic, makes the most sense.
In a report to U.S. regulators on Wednesday, Qualcomm said a licensing agreement that allows Nokia to use Qualcomm’s CDMA (Code Division Multiple Access) patents expires in April 2007, and that there’s no certainty a new contract will be signed by that time.
Without access to the patents, Nokia can’t sell 3G (third generation) phones or other handsets that use Qualcomm’s CDMA technology. Nokia would also be prevented from selling equipment to operators for 3G and CDMA networks.
Analysts expect an agreement to be reached eventually, since the patents are seen as essential to Nokia’s business. The handset maker may be creating noise in an effort to reduce the licensing fees it pays to Qualcomm, which some vendors have complained are too high.