Patent Dispute Essay

720 words - 3 pages

IntroductionSan Diego wireless technology firm Qualcomm filed two patent-infringement lawsuits against the Finnish cell phone maker Nokia. Qualcomm filed separate lawsuits in Wisconsin and Texas against Nokia whom is the largest cell phone manufacturer in the world.A Large portion of Qualcomm's income derives from licensing of its patented wireless technology and selling chip sets used in cell phones. The main dispute between the Qualcomm and Nokia is over how much money Nokia should pay Qualcomm for the use of Qualcomm's patented technology. A 2001 royalty agreement between the two companies is set to expire on April 9, 2007. Nokia has stated that the royalty payments are excessive and Nokia wants lower royalty payments and will not continue to pay the current rates after the 2001 agreement expires, but Nokia plans to continue to use Qualcomm's technology in its phones. The lawsuits that Qualcomm has filed against Nokia are for patent infringementQualcomm which is a San Diego based company has filed the lawsuits in the Eastern District of Texas' Marshall Division and in the Western District of Wisconsin. Qualcomm said both jurisdictions are known for their speed and expertise at ruling on patent disputes. The lawsuits have been filed in federal court and are part of a larger dispute involving the U.S. International Trade Commission in Washington D.C. and the European Trade Commission in Brussels.In order for Qualcomm to wins its case, Qualcomm will need to prove in a court that the cell phone technology that Nokia is currently installing in the phones is the same cell phone technology that Qualcomm currently holds the patents on. To prove this Qualcomm will need to identify what the technology is and how and when the technology was patented. Qualcomm will certainly use the 2001 royalty agreement with Nokia the show the courts that Nokia had agreed to pay royalties on the use of the technology.Nokia is not disputing the fact that Qualcomm holds the patents on the technology. Nokia's argument for the patent infringement is that Qualcomm's royalty payment schedule of 4-1/2% to 5% of the selling price of every Nokia cell phone is excessive....

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