Qualcomm and Nokia are set to go to battle in the US over hundreds of millions of dollars in potential royalty fees. This Wednesday, Qualcomm will argue in a Delaware court that Nokia owes them royalties on CDMA technology patents, with Nokia will defend their position that 
they’ve doled out over $1 billion in payments over the years and isn’t obligated to abide by the expired patent licensing deal.
The two companies are keeping a handful of other patent lawsuits on hold pending the results of this trial. The outcome of the Delaware trial will determine which side, Nokia or Qualcomm, is in the right.
Qualcomm claims that Nokia implicitly extended their patent-licensing deal upon is expiration in 1997. Nokia’s continued use of the patents are claimed to be grounds for an implied contract on the same licensing-terms that were originally inked in 1992.
Nokia, however, contends that they were free-and-clear of the licensing deal upon the expiration of the deal, and after paying over $1 billion in licensing fees. Furthermore, Nokia argues that Qualcomm’s patent holdings have decreased in value as the wireless industry has moved forward, and that Nokia should be allowed to have access to these patents.
“Essentially, we are seeking to prevent Qualcomm from imposing on Nokia the licensing terms of an old agreement contrary to the terms of that agreement and based on a vague allegation of use of patents that have never been identified,” said Nokia spokeswoman Laurie Armstrong.
Nokia is seen as being at a disadvantage in the face of industry precedent for Qualcomm’s demands for royalties. Qualcomm has secured royalty deals, amounting to 5% of a handset’s cost, from 90 other industry members. These deals could make it hard for Nokia to walk away from this trial without having to pay Qualcomm on each of their CDMA handsets. And, the trial’s outcome will likely have negative impacts on the outstanding lawsuits still in limbo on three different continents.
[Via: Reuters]