The legal
spat between
Qualcomm
and Nokia
over royalty payments has intensified following a court filing from Nokia
claiming that some of its licences from Qualcomm in Europe are fully paid.
Analysts at
ABI
Research believe that Nokia's move is "brinkmanship" that will reach a
crescendo after 9 April when the technology sharing licence between the two
companies expires.
ABI said that there will be no resolution to this situation without external
influence, because the two companies are negotiating from fundamentally opposite
positions. Qualcomm values quality, while Nokia points to quantity.
"Qualcomm sees the worth of its core WCDMA intellectual property as far more
valuable than the number of patents it holds, while Nokia contends that its
volume of patent activity in recent years should be recognised by lower royalty
fees," ABI stated.
Stuart Carlaw, wireless research director at ABI, said: "This situation is
reminiscent of the immovable object versus the unstoppable force, and there has
been too much posturing for either party to back down now.
"One of two things will break this deadlock: a court ruling, or ongoing
damage to stock prices."
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