Nokia steps up Qualcomm legal attack

Nokia is now claiming that some of its licences from Qualcomm in Europe are fully paid

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."