Nokia asks ITC to bar Qualcomm chip imports to US, alleges patent infringement

Nokia has filed a complaint with the United States International Trade Commission (ITC) alleging that Qualcomm has engaged in unfair trade practices by infringing five Nokia patents in its CDMA and WCDMA / GSM chipsets.

Nokia has asked ITC to initiate an investigation and issue an exclusion order to bar imports to the United States of the infringing Qualcomm chipsets, and products such as handsets and PDAs, containing these chipsets.

"There is significant evidence to warrant an ITC investigation into Qualcomm''s business conduct," said Rick Simonson, chief financial officer, Nokia. "We are taking this action to stop Qualcomm''s practice of copying Nokia''s patented technology, without permission, and making these innovations available to its chipset customers.

Nokia, which makes over one-third of all mobile handsets sold globally, says Qualcomm''s unfair trade practices include importing products such as handsets, that infringe Nokia patented technology in certain Qualcomm GSM / WCDMA and CDMA2000 chipsets.

The patent dispute relates to technologies that improve the performance and efficiency of wireless communication devices as well as enabling lower manufacturing costs, smaller product size and increased battery life. Nokia says these technologies are important to Nokia''s success as they allow its products to have competitive advantages over those of competitors.

The two transatlantic rivals have been locked in legal battles since part of a cross-licensing deal over technology patents expired on April 9. The dispute revolves around Nokia''s use of Qualcomm patents for high-speed 3G wireless technology, but it also has a bearing on Qualcomm''s chips business, which Nokia says uses many Nokia-patented technologies.

Analysts say Nokia has paid Qualcomm about $500 million per year and wants this reduced though Nokia avers that its patent portfolio is much stronger now than 15 years back, when the original cross-licensing deal was agreed by the two manufacturers.

Any technology licensing deal between the two would impact the future of 3G technologies.

"We are seeking the same remedies Qualcomm has sought against Nokia in multiple venues around the world. Nokia will continue to ensure its rights and competitive advantage is protected," Simonson added. In In 2005 Qualcomm had filed a lawsuit against Nokia alleging patent infringement of 12 of its patents pertaining to GSM technology.

Qualcomm has also been fighting over patents with rival Broadcom Corp, with ITC ruling against Qualcomm in that dispute, banning imports of new advanced phones using chips the ITC said infringed on Broadcom patents.