There’s just over two weeks to go until the April 9 deadline for Qualcomm and Nokia to work out their WCDMA licensing woes, and Qualcomm Chief Executive Paul Jacobs is not optimistic about getting the situation sorted out before that deadline. “We’re still talking but I’m still in the same place. I’m not optimistic we’ll come to an agreement by April 9,” Jacobs told Reuters on the sidelines of the CTIA wireless conference. Considering April 9 is Easter Monday I hope for their sake they’re not negotiating up to the last minute…
The latest move from Nokia is a court filing that some of its licenses from Qualcomm in Europe are fully paid up. ABI Research reckons this is a classic case of brinkmanship, and neither party will back down until there’s a court ruling or share prices are hit. For those who came in late, the basic argument from Nokia is that it has more patents for WCDMA than when the license deals were originally made, and should get lower royalties as a result. Qualcomm responds that its patents are really good, and the licensing fee should remain the same.
There’s an interesting quote from ABI’s wireless research director Stuart Carlaw that “even if Nokia wins this battle, the average cumulative royalty rate for WCDMA multi-mode terminals will not be decreased a great deal, due to the need to support GSM and its royalty structure. At best there will be a 1 percent difference by 2011, with a cumulative rate likely to be around 7.4 percent”. (release)
–<a href="http://www.moconews.net/entry/419-qualcomm-responds-to-nokias-exhausted-claim/" title="Qualcomm Responds To Nokia