Companies agree to settle all litigation
ESPOO, Finland and SAN DIEGO, July 23 /PRNewswire-FirstCall/ -- 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's 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
Paul 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&P 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 the Siemens >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.
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SOURCE Nokia Corporation
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Related links:
http://www.nokia.com
CONTACT:
Media and Investors, Nokia Communications,
Anne Eckert, + 85 269 716918, or Nokia, North America
Communications, Laurie Armstrong, +1-914-368-0423, or Nokia
Communications, +358 7180 34900, press.services@nokia.com, or
Investor Relations Europe, +358 7180 34289, or Investor Relations
US, +1-914-368-0555; or Qualcomm, Christine Trimble, Corporate
Communications, +1-858-845-5959, corpcomm@qualcomm.com, or John
Gilbert, Investor Relations, +1-858-658-4813, ir@qualcomm.com
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