HELSINKI, Finland and SAN DIEGO, CA. -- (July 3, 2001) -- Nokia (NYSE: NOK) and Qualcomm Incorporated (Nasdaq: QCOM) today announced that they have expanded the terms of their existing CDMA subscriber cross-license agreement.
Under the terms of the multi-million dollar expansion, Nokia has also been granted a royalty-bearing license under Qualcomm's patents to make and sell infrastructure equipment for all CDMA wireless systems while Qualcomm is granted rights under Nokia's CDMA-related and other patents to market and sell CDMA components, including multi-mode integrated circuits.
As part of the agreement, Nokia will continue to pay royalties to Qualcomm for subscriber equipment at the same rates established by the terms of the original cross-license agreement in 1992, irrespective of the CDMA standard implemented.
"Nokia's industry-leading technology base, patent portfolio and cross-licensing arrangements have historically enabled us to offer innovative products to our consumer and carrier customers. We welcome the enhancement of our longstanding technology relationship with Qualcomm and we look forward to the success of new, global third-generation wireless solutions," said Yrjo Neuvo, chief technology officer at Nokia Mobile Phones and member of the Executive Board, Nokia Group.
"Over the last decade, Nokia has successfully expanded their telecommunications business and has become the world's leading handset supplier," said Steve Altman, executive vice president of Qualcomm and president of Qualcomm's Technology Alliance division. "We welcome the enhancement of the original Nokia-Qualcomm patent agreement to include all CDMA standards for infrastructure equipment as well as subscriber equipment."
Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet, Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include CDMA integrated circuits and system software; technology licensing; the Binary Runtime Environment for Wireless™(BREW™) applications platform; Eudora® e-mail software; digital cinema systems; and satellite based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS and OmniExpress. Qualcomm owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2001 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company'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 24, 2000, and most recent Form 10-Q.