Qualcomm said Monday it’s suing Nokia, alleging the cell phone maker infringed on a dozen patents.
, alleging the cell phone maker infringed on a dozen patents.
Qualcomm is alleging that Nokia is making cell phones and network equipment based on Qualcomm’s patents without paying the licensing fees and royalties. Qualcomm, based in San Diego, makes cell phone chips but gets most of its revenue from licensing its technologies, which are widely used in the cell phone business.
“It now appears that a cooperative resolution for these issues is quite unlikely and we must move forward with the litigation in order to protect our rights and to get these issues resolved,” said Louis M. Lupin, Qualcomm’s general counsel.
The lawsuit, filed in a federal court in San Diego, is the latest spat between the two companies. On October 28, Nokia joined five other companies in complaining to the European Commission about Qualcomm’s business practices.
Shares of both companies fell in recent trading. Nokia shares slipped $0.06 to $17.10 while Qualcomm shares dipped $0.13 to $44.67.
Dominant Position
Nokia, along with companies such as Texas Instruments, NEC, and Ericsson, accused Qualcomm of using its dominant position in the cell phone industry to levy excessive royalties and eliminate competition by refusing to license certain technologies (see Qualcomm Faces Antitrust Woes).
Texas InstrumentsQualcomm Faces Antitrust WoesNokia issued a response to Qualcomm’s lawsuit and noted that the litigation came just after the E.C. complaint. While Mr. Lupin said Qualcomm has been trying to get Nokia to pay for the patents, Nokia contended that negotiations for the patents in question have not taken place.
“Nokia is disappointed that Qualcomm has taken this step given they have yet to engage in any licensing negotiations concerning these matters,” the company said in a statement. “Qualcomm has not provided Nokia with any proposed terms for a license in compliance with its obligations.”
In the lawsuit, Qualcomm alleges that Nokia has made GSM cell phones and network equipment using patents owned by Qualcomm and Qualcomm’s subsidiary, SnapTrack. SnapTrack, based in Campbell, California, develops software and licenses its technologies for adding global positioning ability in handsets and servers.
Qualcomm is asking the court to stop Nokia from selling products with the disputed patents in the United States and order Nokia to pay yet-to-be-specified damages.
Qualcomm also has filed a federal lawsuit on July 11 against Broadcom over six of the same patents. Broadcom, a communications chip maker in Irvine, California, joined Nokia in the complaint with the E.C.
Broadcom earlier this year also filed two suits against Qualcomm accusing Qualcomm of infringing on its patents and excluding competition by charging high royalties or demanding unfair licensing terms (see Broadcom Sues Qualcomm.)
Broadcom Sues Qualcomm