Qualcomm soars on Nokia deal
Qualcomm (QCOM) surged in early trading Thursday after the chip company settled a longstanding patent dispute with cellphone maker Nokia (NOK). Terms weren’t disclosed, but the 15-year agreement will give Nokia a license under Qualcomm patents for use in mobile devices and network gear. Qualcomm will get an upfront payment and ongoing royalties, and Nokia will drop a suit filed last year that challenged the status of Qualcomm patents with the European Union.
The settlement comes after years of legal sniping by the two companies, which have been jockeying for position in the fast-growing cellphone business. “The terms of the new license agreement, including the financial and other value provided to Qualcomm, reflect our strong intellectual property position across many current and future generation technologies,” Qualcomm chief Paul Jacobs said. “This agreement paves the way for enhanced opportunities between the companies in a number of areas.” Qualcomm shares shot up 18% in early trading Thursday.
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