The Wall Street Journal-20080215-Patent Rivals Near Terms

Return to: The_Wall_Street_Journal-20080215

Patent Rivals Near Terms

Full Text (215  words)

Qualcomm Inc. and Nokia Corp. are close to an agreement on procedural issues relating to a court case between them, the two companies said.

The cellphone technology giants have been waging legal battles over issues related to a 2001 patent-licensing agreement, which expired in April 2007. Qualcomm charges patent royalties to makers of cellular handsets, which Nokia and some other companies contend are excessive.

The case in Delaware Chancery Court, filed by Nokia, focuses on whether Qualcomm abided by patent-licensing rules set by an industry group that defined technology standards in so-called third-generation cellular networks. The companies have also been preparing to fight a separate arbitration proceeding, sought by Qualcomm, that stems from the breakup of their licensing relationship.

At the court's suggestion, the companies have been negotiating an agreement in which the arbitration would be consolidated into the Delaware case.

Nokia said lawyers for the companies discussed ways to resolve certain issues common to all potential cases between them. Nokia said the issues relate to interpretation of the 2001 cross-license agreement and certain parts of standardization rules.

Qualcomm issued its own statement. "Qualcomm is pleased that the issues with Nokia are moving toward a prompt resolution," it said.

If the procedural agreement is reached, a trial in the Delaware case is expected in July.