Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, announced that on July 7, 2006, the United States International Trade Commission (ITC) has commenced an investigation into whether Nokia Corporation and Nokia Inc. have engaged in unfair trade practices by the importation and sale of certain mobile telephone handsets, wireless communication devices and components that infringe one or more claims of six Qualcomm patents. Qualcomm, in a complaint filed with the ITC on June 9, 2006, is requesting that the ITC issue an Exclusion Order to bar importation of infringing Nokia handsets and other products. Qualcomm also seeks a Cease and Desist Order to bar further sales of infringing Nokia products that have already been imported and to halt the marketing, advertising, demonstration, warehousing of inventory for distribution and use of such imported products in the United States. The accused products include handsets for use in GSM/GPRS/EDGE networks.
The case has been referred to the Honorable Robert L. Barton, Jr., as the presiding administrative law judge, who will schedule and hold an evidentiary hearing and then make an initial determination which is expected to be issued in the first half of 2007. If an exclusion order is entered, Nokia's infringing products would be barred from importation into the United States.
In addition to the complaint filed with the ITC, on November 4, 2005, Qualcomm and its SnapTrack subsidiary filed suit against Nokia Corporation and Nokia Inc. in federal court in San Diego for infringement of 11 of Qualcomm's patents and one patent owned by SnapTrack. Qualcomm's lawsuit alleges infringement of patents that are essential for the manufacture or use of equipment that complies with the GSM, GPRS and EDGE cellular standards (the GSM family of standards). Three of the patents included in Qualcomm's ITC complaint are also being asserted in the San Diego litigation.
Qualcomm has also sued Nokia for patent infringement in the United Kingdom. That lawsuit, commenced on May 24, 2006, alleges that Nokia's sales of products which are capable of operating in accordance with the GPRS and/or EDGE standards infringe two of Qualcomm's patents in the U.K.
Qualcomm has offered to license its essential patents for Nokia's GSM/GPRS/EDGE products under terms that are fair, reasonable and free from unfair discrimination. Nokia has refused this offer and continued to sell infringing products around the world, leaving Qualcomm no choice but to enforce its patent rights through legal proceedings.
Qualcomm Incorporated (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 2006 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.