Trial to begin in Nokia, Qualcomm licensing fight

By Diane Bartz

WASHINGTON (Reuters) - Nokia (NOK1V.HE), the world's largest cell-phone maker, and wireless chip supplier Qualcomm (QCOM.O) go to court on Wednesday in hopes of resolving a licensing fight that involves hundreds of millions of dollars and has spawned lawsuits on three continents.

The case is based on a 1992 licensing agreement that allowed Nokia to use Qualcomm's patents in its phones. That license expired on April 9, 2007, after Nokia paid Qualcomm $1 billion in fees and considered it to be paid up.

But Qualcomm disagreed, and is asking the Delaware Court of Chancery, which hears business disputes, to rule that Nokia extended that agreement by continuing to buy its patented products on the same terms.

Nokia says that under the deal between the two companies the cross-licensing agreement can only be extended in writing.

Nokia also maintains that Qualcomm failed to live up to obligations incurred when a standard setting body chose as the standard Qualcomm's patents for CDMA -- a digital radio system that allows a cell-phone user to send voice, data and information such as a dialed telephone number between mobile telephones and cell sites.

"Essentially, we are seeking to prevent Qualcomm from imposing on Nokia the licensing terms of an old agreement contrary to the terms of that agreement and based on a vague allegation of use of patents that have never been identified," said Nokia spokeswoman Laurie Armstrong.

She also argued that Nokia should have access to the patents.

"Further, we are asking the court's clarification on acceptable corporate behavior in a standard-setting environment," she said. "We believe this means you should not be entitled to seek court injunctions for essential patents."