Nokia filed a complaint Friday with the U.S. International Trade Commission requesting that imports be blocked of several Qualcomm CDMA and WCDMA/GSM chipsets on the grounds that they violate five Nokia patents. "The patents in question relate to technologies that improve the performance and efficiency of wireless communication devices as well as enabling lower manufacturing costs, smaller product size and increased battery life," Nokia said. The company is also requesting that handsets containing the chipsets be barred from entry. "There is significant evidence to warrant an ITC investigation into Qualcomm's business conduct," said Nokia CFO Rick Simonson. "We are seeking the same remedies Qualcomm has sought against Nokia in multiple venues around the world. Nokia will continue to ensure its rights and competitive advantage is protected." Qualcomm filed a similar complaint against Nokia last year, seeking to block import of Nokia handsets that allegedly infringe Qualcomm patents. Nokia and Qualcomm are already embroiled in a dispute over how much Qualcomm is entitled to receive in royalties for third-generation Internet-accessible phones. A cross-licensing agreement expired April 9, and Nokia argues that it should now pay Qualcomm lower fees.
Sources: Reuters, LA Times, Bloomberg, Dow Jones
Commentary: Nokia Arms The Competition Against Qualcomm • Nokia Shares Higher on New Chip Strategy, Despite InterDigital Patent Claim • Qualcomm: Friend and Foe Alike Keeping Their Distance
Stocks/ETFs to watch: NOK, QCOM. Competitors: MOT, ERIC. ETFs: FVI
Earnings call transcripts: Nokia Q2 2007, QUALCOMM F3Q07
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