Nokia and Qualcomm Enter Into a New Agreement

Tag : Nokia CDMA Phone

- Companies Agree to Settle All Litigation -
ESPOO and SAN DIEGO, July 23 /PRNewswire-FirstCall/ -- Nokia and Qualcomm today announced that they have entered into a new agreementcovering various standards including GSM, EDGE, CDMA, WCDMA, HSDPA,OFDM, WiMAX, LTE and other technologies. The agreement will resultin settlement of all litigation between the companies, includingthe withdrawal by Nokia of its complaint to the EuropeanCommission.
Under the terms of the new 15-year agreement, Nokia has beengranted a license under all Qualcomm's patents for use in Nokiamobile devices and Nokia Siemens Networks infrastructure equipment.Further, Nokia has agreed not to use any of its patents directlyagainst Qualcomm, enabling Qualcomm to integrate Nokia's technologyinto Qualcomm's chipsets. The financial structure of the settlementincludes an up-front payment and on-going royalties payable toQualcomm. Nokia has agreed to assign ownership of a number ofpatents to Qualcomm, including patents declared as essential toWCDMA, 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 newtechnologies," said Olli-Pekka Kallasvuo, CEO of Nokia Corporation."The positive financial impact of this agreement is within Nokia'soriginal expectations and fully reflects our leading intellectualproperty 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 newlicense agreement, including the financial and other value providedto Qualcomm, reflect our strong intellectual property positionacross many current and future generation technologies. Thisagreement paves the way for enhanced opportunities between thecompanies in a number of areas."
About Nokia
Nokia is the world leader in mobility, driving the transformationand growth of the converging Internet and communicationsindustries. We make a wide range of mobile devices with servicesand 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 offocus. We also provide equipment, solutions and services forcommunications networks through Nokia Siemens Networks.
About Qualcomm
Qualcomm Incorporated ( http://www.qualcomm.com ) is a leader in developing and delivering innovative digitalwireless communications products and services based on CDMA andother advanced technologies. Headquartered in San Diego, Calif.,Qualcomm is included in the S&P 500 Index and is a 2008 FORTUNE500(R) company traded on The Nasdaq Stock Market(R) under theticker symbol QCOM.
Nokia Forward-Looking Statements
It should be noted that certain statements herein which are nothistorical facts, including, without limitation, those regarding:A) the timing of product, services and solution deliveries; B) ourability to develop, implement and commercialize new products,services, solutions and technologies; C) expectations regardingmarket growth, developments and structural changes; D) expectationsregarding our mobile device volume growth, market share, prices andmargins; E) expectations and targets for our results of operations;F) the outcome of pending and threatened litigation; G)expectations regarding the successful completion of contemplatedacquisitions on a timely basis and our ability to achieve the settargets upon the completion of such acquisitions; and H) statementspreceded by "believe," "expect," "anticipate," "foresee," "target,""estimate," "designed," "plans," "will" or similar expressions areforward-looking statements. These statements are based onmanagement's best assumptions and beliefs in light of theinformation currently available to it. Because they involve risksand uncertainties, actual results may differ materially from theresults that we currently expect. Factors that could cause thesedifferences include, but are not limited to: 1) competitiveness ofour product, service and solutions portfolio; 2) the extent of thegrowth of the mobile communications industry and general economicconditions globally; 3) the growth and profitability of the newmarket segments that we target and our ability to successfullydevelop or acquire and market products, services and solutions inthose segments; 4) our ability to successfully manage costs; 5) theintensity of competition in the mobile communications industry andour ability to maintain or improve our market position or respondsuccessfully to changes in the competitive landscape; 6) the impactof changes in technology and our ability to develop or otherwiseacquire complex technologies as required by the market, with fullrights needed to use; 7) timely and successful commercialization ofcomplex technologies as new advanced products, services andsolutions; 8) our ability to protect the complex technologies,which we or others develop or that we license, from claims that wehave infringed third parties' intellectual property rights, as wellas our unrestricted use on commercially acceptable terms of certaintechnologies in our products, services and solution offerings; 9)our ability to protect numerous Nokia and Nokia Siemens Networkspatented, standardized or proprietary technologies from third-partyinfringement or actions to invalidate the intellectual propertyrights of these technologies; 10) Nokia Siemens Networks' abilityto achieve the expected benefits and synergies from its formationto the extent and within the time period anticipated and tosuccessfully integrate its operations, personnel and supportingactivities; 11) whether, as a result of investigations into allegedviolations of law by some current or former employees of Siemens AG("Siemens"), government authorities or others take further actionsagainst Siemens and/or its employees that may involve and affectthe carrier-related assets and employees transferred by Siemens toNokia Siemens Networks, or there may be undetected additionalviolations that may have occurred prior to the transfer, or ongoingviolations that may have occurred after the transfer, of suchassets and employees that could result in additional actions bygovernment authorities; 12) any impairment of Nokia SiemensNetworks customer relationships resulting from the ongoinggovernment investigations involving the Siemens >carrier-relatedoperations transferred to Nokia Siemens Networks; 13) occurrence ofany actual or even alleged defects or other quality issues in ourproducts, services and solutions; 14) our ability to manageefficiently our manufacturing and logistics, as well as to ensurethe quality, safety, security and timely delivery of our products,services and solutions; 15) inventory management risks resultingfrom shifts in market demand; 16) our ability to source sufficientamounts of fully functional components and sub-assemblies withoutinterruption and at acceptable prices; 17) any disruption toinformation technology systems and networks that our operationsrely on; 18) developments under large, multi-year contracts or inrelation to major customers; 19) economic or political turmoil inemerging market countries where we do business; 20) our success incollaboration arrangements relating to development of technologiesor new products, services and solutions; 21) the success, financialcondition and performance of our collaboration partners, suppliersand customers; 22) exchange rate fluctuations, including, inparticular, fluctuations between the euro, which is our reportingcurrency, and the US dollar, the Chinese yuan, the UK poundsterling 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 fieldsgenerated by base stations and mobile devices and lawsuits relatedto them, regardless of merit; 25) unfavorable outcome oflitigations; 26) our ability to recruit, retain and developappropriately skilled employees; 27) the impact of changes ingovernment policies, laws or regulations; and 28) our ability toeffectively and smoothly implement our new organizationalstructure; as well as the risk factors specified on pages 10-25 ofNokia's annual report on Form 20-F for the year ended December 31,2007 under "Item 3.D Risk Factors." Other unknown or unpredictablefactors or underlying assumptions subsequently proving to beincorrect could cause actual results to differ materially fromthose in the forward-looking statements. Nokia does not undertakeany obligation to update publicly or revise forward-lookingstatements, whether as a result of new information, future eventsor otherwise, except to the extent legally required.
Qualcomm Forward-Looking Statements
Except for the historical information contained herein, this newsrelease contains forward-looking statements that are subject torisks and uncertainties, including Qualcomm's ability tosuccessfully design and have manufactured significant quantities ofCDMA components on a timely and profitable basis, the extent andspeed to which CDMA is deployed, change in economic conditions ofthe various markets the Company serves, as well as the other risksdetailed from time to time in the Company's SEC reports, includingthe report on Form 10-K for the year ended September 30, 2007, andmost recent Form 10-Q.
Qualcomm is a registered trademark of Qualcomm Incorporated. Allother trademarks are the property of their respective owners.



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