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Qualcomm, Nokia Still Sparring

Qualcomm rejects a unilaterally determined royalty payment.

Qualcomm (QCOM) - Get Qualcomm Inc Report says it has rejected Nokia's (NOK) - Get Nokia Oyj Report $20 million advance payment of mobile phone royalties.

The two wireless giants have squared off over a licensing agreement that was set to expire Monday. Nokia had hoped Qualcomm would accept the payment to cover fees up until June.

Qualcomm says it rejected the $20 million offer because it contained too many conditions and because it "is a fraction of the royalty to which Nokia agreed."

A week ago, when Nokia made its $20 million gesture, Qualcomm replied by seeking an arbitrated settlement to this long-running patent licensing despute.

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Nokia has said it wants to pay less or nothing in fees to Qualcomm and has received an extension of the existing contract to 2008. Qualcomm collects an estimated 4.5% royalty for every phone sold that uses its patent.

Qualcomm shares rose 62 cents to $42.72, and Nokia was down 2 cents to $23.36.