Nokia and Qualcomm Enter Into a New Agreement
24/07/2008 01:20
PR Newswire
ESPOO and SAN DIEGO, July 24 /PRNewswire/ --
- Companies Agree to Settle All Litigation -
Nokia (NYSE: NOK) and Qualcomm (Nasdaq: QCOM) today announced that they
have entered into a new agreement covering various standards including GSM,
EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMAX, LTE and other technologies. The
agreement will result in settlement of all litigation between the companies,
including the withdrawal by Nokia of its complaint to the European
Commission.
Under the terms of the new 15-year agreement, Nokia has been granted a
license under all Qualcomm's patents for use in Nokia mobile devices and
Nokia Siemens Networks infrastructure equipment. Further, Nokia has agreed
not to use any of its patents directly against Qualcomm, enabling Qualcomm to
integrate Nokia's technology into Qualcomm's chipsets. The financial
structure of the settlement includes an up-front payment and on-going
royalties payable to Qualcomm. Nokia has agreed to assign ownership of a
number of patents to Qualcomm, including patents declared as essential to
WCDMA, GSM and OFDMA. The specific terms are confidential.
"We believe that this agreement is positive for the industry, enabling
the market to benefit from innovation and new technologies," said Olli-Pekka
Kallasvuo, CEO of Nokia Corporation. "The positive financial impact of this
agreement is within Nokia's original expectations and fully reflects our
leading intellectual property and market positions."
"I'm very pleased that we have come to this important agreement," said
Dr. Paul E. Jacobs, CEO of Qualcomm. "The terms of the new license agreement,
including the financial and other value provided to Qualcomm, reflect our
strong intellectual property position across many current and future
generation technologies. This agreement paves the way for enhanced
opportunities between the companies in a number of areas."
About Nokia
Nokia is the world leader in mobility, driving the transformation and
growth of the converging Internet and communications industries. We make a
wide range of mobile devices with services and software that enable people to
experience music, navigation, video, television, imaging, games, business
mobility and more. Developing and growing our offering of consumer Internet
services, as well as our enterprise solutions and software, is a key area of
focus. We also provide equipment, solutions and services for communications
networks through Nokia Siemens Networks.
About Qualcomm
Qualcomm Incorporated (http://www.qualcomm.com) is a leader in developing
and delivering innovative digital wireless communications products and
services based on CDMA and other advanced technologies. Headquartered in San
Diego, Calif., Qualcomm is included in the S? 500 Index and is a 2008
FORTUNE 500(R) company traded on The Nasdaq Stock Market(R) under the ticker
symbol QCOM.
Nokia Forward-Looking Statements
It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A) the
timing of product, services and solution deliveries; B) our ability to
develop, implement and commercialize new products, services, solutions and
technologies; C) expectations regarding market growth, developments and
structural changes; D) expectations regarding our mobile device volume
growth, market share, prices and margins; E) expectations and targets for our
results of operations; F) the outcome of pending and threatened litigation;
G) expectations regarding the successful completion of contemplated
acquisitions on a timely basis and our ability to achieve the set targets
upon the completion of such acquisitions; and H) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed," "plans," "will" or similar expressions are forward-looking
statements. These statements are based on management's best assumptions and
beliefs in light of the information currently available to it. Because they
involve risks and uncertainties, actual results may differ materially from
the results that we currently expect. Factors that could cause these
differences include, but are not limited to: 1) competitiveness of our
product, service and solutions portfolio; 2) the extent of the growth of the
mobile communications industry and general economic conditions globally; 3)
the growth and profitability of the new market segments that we target and
our ability to successfully develop or acquire and market products, services
and solutions in those segments; 4) our ability to successfully manage costs;
5) the intensity of competition in the mobile communications industry and our
ability to maintain or improve our market position or respond successfully to
changes in the competitive landscape; 6) the impact of changes in technology
and our ability to develop or otherwise acquire complex technologies as
required by the market, with full rights needed to use; 7) timely and
successful commercialization of complex technologies as new advanced
products, services and solutions; 8) our ability to protect the complex
technologies, which we or others develop or that we license, from claims that
we have infringed third parties' intellectual property rights, as well as our
unrestricted use on commercially acceptable terms of certain technologies in
our products, services and solution offerings; 9) our ability to protect
numerous Nokia and Nokia Siemens Networks patented, standardized or
proprietary technologies from third-party infringement or actions to
invalidate the intellectual property rights of these technologies; 10) Nokia
Siemens Networks' ability to achieve the expected benefits and synergies from
its formation to the extent and within the time period anticipated and to
successfully integrate its operations, personnel and supporting activities;
11) whether, as a result of investigations into alleged violations of law by
some current or former employees of Siemens AG ("Siemens"), government
authorities or others take further actions against Siemens and/or its
employees that may involve and affect the carrier-related assets and
employees transferred by Siemens to Nokia Siemens Networks, or there may be
undetected additional violations that may have occurred prior to the
transfer, or ongoing violations that may have occurred after the transfer, of
such assets and employees that could result in additional actions by
government authorities; 12) any impairment of Nokia Siemens Networks customer
relationships resulting from the ongoing government investigations involving
carrier-related operations transferred to Nokia Siemens
Networks; 13) occurrence of any actual or even alleged defects or other
quality issues in our products, services and solutions; 14) our ability to
manage efficiently our manufacturing and logistics, as well as to ensure the
quality, safety, security and timely delivery of our products, services and
solutions; 15) inventory management risks resulting from shifts in market
demand; 16) our ability to source sufficient amounts of fully functional
components and sub-assemblies without interruption and at acceptable prices;
17) any disruption to information technology systems and networks that our
operations rely on; 18) developments under large, multi-year contracts or in
relation to major customers; 19) economic or political turmoil in emerging
market countries where we do business; 20) our success in collaboration
arrangements relating to development of technologies or new products,
services and solutions; 21) the success, financial condition and performance
of our collaboration partners, suppliers and customers; 22) exchange rate
fluctuations, including, in particular, fluctuations between the euro, which
is our reporting currency, and the US dollar, the Chinese yuan, the UK pound
sterling and the Japanese yen, as well as certain other currencies; 23) the
management of our customer financing exposure; 24) allegations of possible
health risks from electromagnetic fields generated by base stations and
mobile devices and lawsuits related to them, regardless of merit; 25)
unfavorable outcome of litigations; 26) our ability to recruit, retain and
develop appropriately skilled employees; 27) the impact of changes in
government policies, laws or regulations; and 28) our ability to effectively
and smoothly implement our new organizational structure; as well as the risk
factors specified on pages 10-25 of Nokia's annual report on Form 20-F for
the year ended December 31, 2007 under "Item 3.D Risk Factors." Other unknown
or unpredictable factors or underlying assumptions subsequently proving to be
incorrect could cause actual results to differ materially from those in the
forward-looking statements. Nokia does not undertake any obligation to update
publicly or revise forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent legally
required.
Qualcomm Forward-Looking Statements
Except for the historical information contained herein, this news release
contains forward-looking statements that are subject to risks and
uncertainties, including Qualcomm's ability to successfully design and have
manufactured significant quantities of CDMA components on a timely and
profitable basis, the extent and speed to which CDMA is deployed, change in
economic conditions of the various markets the Company serves, as well as the
other risks detailed from time to time in the Company's SEC reports,
including the report on Form 10-K for the year ended September 30, 2007, and
most recent Form 10-Q.
Qualcomm is a registered trademark of Qualcomm Incorporated. All other
trademarks are the property of their respective owners.
Qualcomm Contacts:
Christine Trimble, Corporate Communications
Phone: +1-858-845-5959
Email: corpcomm@qualcomm.com
John Gilbert, Investor Relations
Phone: +1-858-658-4813
Email: ir@qualcomm.com
Nokia Contacts:
Nokia, Communications
Anne Eckert
Phone: +85-269-716918
Nokia, North America
Communications
Laurie Armstrong
Phone: +1-914-368-0423
Nokia
Communications
Phone: +358-7180-34900
Email: press.office@nokia.com
Investor Relations Europe
Phone: +358-7180-34289
Investor Relations US
Phone: +1-914-368-0555
Web site: http://www.qualcomm.com
Christine Trimble, Corporate Communications, +1-858-845-5959, corpcomm@qualcomm.com, or John Gilbert, Investor Relations, +1-858-658-4813, ir@qualcomm.com, both of Qualcomm Incorporated; or Nokia, Communications, Anne Eckert, + 85-269-716918, Nokia, North America, Communications, Laurie Armstrong, +1-914-368-0423, Nokia Communications, +358-7180-34900, press.office@nokia.com, Investor Relations Europe, +358-7180-34289, or Investor Relations US, +1-914-368-0555, all of Nokia
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