Qualcomm, Nokia Settle Patent Fight - TheStreet

Qualcomm, Nokia Settle Patent Fight

A new 15-year agreement is established.
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SAN FRANCISCO -- Something was up with Qualcomm's (QCOM) - Get Report earnings postponement after all.

Just hours after the San Diego chipmaker's delay of its third-quarter earnings report drove speculation of a legal settlement with

Nokia

(NOK) - Get Report

, the companies announced such an agreement late Wednesday.

Qualcomm said the 15-year agreement grants Nokia a license under all Qualcomm's patents for use in Nokia 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 of the agreement are confidential.

The move settles all litigation between the companies, including the withdrawal by Nokia of a complaint with the European Commission -- and a Delaware trial that was to begin today, but had been delayed.

Shares of Qualcomm shot higher in after-hours trading after the company said it was delaying its earnings scheduled for late Wednesday to Thursday morning. Traders took the stock higher on the idea that the two companies were working on a settlement.

Qualcomm was up nearly 16% to $51.06. Shares of Nokia closed Wednesday down 7 cents to $26.70.

As reported in the

Wall Street Journal

, the companies have been in court since a 2001 patent licensing agreement expired in April 2007.

This article was written by a staff member of TheStreet.com.