Qualcomm Incorporated (NASDAQ: QCOM) and Philips Consumer Communications LP (PCC) today announced that they have entered into a Code Division Multiple Access (CDMA) royalty-bearing, cross-license agreement together with Philips Electronics NV. Under terms of the agreement, Qualcomm granted PCC a license under certain of its patents to develop, manufacture and sell CDMA subscriber units including those for cdmaOne applications, and for the proposed European Telecommunications Standards Institute (ETSI) Universal Mobile Telephone System (UMTS) standard being referred to as "W-CDMA." Philips granted Qualcomm a license under certain of Philips' patents for its own use and for sale of CDMA products.
The agreement also amicably settles litigation between Qualcomm and U.S. Philips Corporation which addressed the validity of certain of Philips' patents and sought a determination that Qualcomm's products are not infringing.
"We are pleased to be able to settle our differences with Philips and expect to continue the important positive business relationships that the companies have established over the years," said Harvey White, president of Qualcomm. "With Philips' resources and reputation as a manufacturer of high-quality consumer products, we expect Philips to make a major contribution to the overall worldwide growth of the CDMA market."
Added Terry Vega, PCC's executive vice president, wireless products, "PCC is a technology neutral company that is committed to advancing all of the current infrastructure standards and we believe that this agreement will aid us in further establishing ourselves in the important CDMA technology sector."
Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar™ low-earth-orbit (LEO) satellite communications system. Other Company products include the Eudora Pro™ electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information, please visit www.qualcomm.com.
Philips Consumer Communications, a Lucent Technologies and Philips Electronics joint venture, designs, manufactures and markets a complete range of personal communications products including digital and analog cellular and cordless phones, corded phones, answering machines, screenphones and pagers. The union of the two businesses has created a company that is a world leader in corded and cordless phones and answering machines. The partnership was formed October 1, 1997 with 60 percent interest held by Philips Electronics and 40 percent held by Lucent Technologies. Philips Consumer Communications maintains a site on the World Wide Web at www.philipsconsumer.com.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development, 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 28, 1997 and most recent Form 10-Q.
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