Nokia Corporation
Stock exchange release
July 24, 2008 at 1:50
Nokia and Qualcomm enter into a new agreement
Companies agree to settle all litigation
Espoo, Finland and San Diego, USA - Nokia (NYSE: NOK) and Qualcomm (Nasdaq:
QCOM) today announced that they have entered into a new agreement covering
various standards including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMax, LTE and
other technologies. The agreement will result in settlement of all litigation
between the companies, including the withdrawal by Nokia of its complaint to the
European Commission.
Under the terms of the new 15 year agreement, Nokia has been granted a license
under all Qualcomm's patents for use in Nokia's mobile devices and Nokia Siemens
Networks infrastructure equipment. Further, Nokia has agreed not to use any of
its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia's
technology into Qualcomm's chipsets. The financial structure of the settlement
includes an up-front payment and on-going royalties payable to Qualcomm. Nokia
has agreed to assign ownership of a number of patents to Qualcomm, including
patents declared as essential to WCDMA, GSM and OFDMA. The specific terms are
confidential.
"We believe that this agreement is positive for the industry, enabling the
market to benefit from innovation and new technologies," said Olli-Pekka
Kallasvuo, CEO of Nokia Corporation. “The positive financial impact of this
agreement is within Nokia's original expectations and fully reflects our leading
intellectual property and market positions."
"I'm very pleased that we have come to this important agreement." said Paul
Jacobs, CEO of Qualcomm. “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. This
agreement paves the way for enhanced opportunities between the companies in a
number of areas.”
About Nokia
Nokia is the world leader in mobility, driving the transformation and growth of
the converging Internet and communications industries. We make a wide range of
mobile devices with services and software that enable people to experience
music, navigation, video, television, imaging, games, business mobility and
more. Developing and growing our offering of consumer Internet services, as well
as our enterprise solutions and software, is a key area of focus. We also
provide equipment, solutions and services for communications networks through
Nokia Siemens Networks.
About Qualcomm
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and
delivering innovative digital wireless communications products and services
based on CDMA and other advanced technologies. Headquartered in San Diego,
Calif., Qualcomm is included in the S&P 500 Index and is a 2008 FORTUNE 500®
company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Media and Investor Contacts:
Nokia
Nokia, Communications
Anne Eckert
Tel. + 85 269 716918
Nokia, North America
Communications
Laurie Armstrong
Tel. +1 914 368 0423
Nokia
Communications
Tel. +358 7180 34900
Email: press.services@nokia.com
Investor Relations Europe, tel. +358 7180 34289
Investor Relations US, tel. +1 914 368 0555
Qualcomm
Christine Trimble, Corporate Communications
Phone: 1-858-845-5959
Email: corpcomm@qualcomm.com
John Gilbert, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com
Nokia Forward Looking Statements
It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding: A) the timing of product,
services and solution deliveries; B) our ability to develop, implement and
commercialize new products, services, solutions and technologies; C)
expectations regarding market growth, developments and structural changes; D)
expectations regarding our mobile device volume growth, market share, prices and
margins; E) expectations and targets for our results of operations; F) the
outcome of pending and threatened litigation; G) expectations regarding the
successful completion of contemplated acquisitions on a timely basis and our
ability to achieve the set targets upon the completion of such acquisitions; and
H) statements preceded by "believe," "expect," "anticipate," "foresee,"
"target," "estimate," "designed," "plans," "will" or similar expressions are
forward-looking statements. These statements are based on management's best
assumptions and beliefs in light of the information currently available to it.
Because they involve risks and uncertainties, actual results may differ
materially from the results that we currently expect. Factors that could cause
these differences include, but are not limited to: 1) competitiveness of our
product, service and solutions portfolio; 2) the extent of the growth of the
mobile communications industry and general economic conditions globally; 3) the
growth and profitability of the new market segments that we target and our
ability to successfully develop or acquire and market products, services and
solutions in those segments; 4) our ability to successfully manage costs; 5) the
intensity of competition in the mobile communications industry and our ability
to maintain or improve our market position or respond successfully to changes in
the competitive landscape; 6) the impact of changes in technology and our
ability to develop or otherwise acquire complex technologies as required by the
market, with full rights needed to use; 7) timely and successful
commercialization of complex technologies as new advanced products, services and
solutions; 8) our ability to protect the complex technologies, which we or
others develop or that we license, from claims that we have infringed third
parties' intellectual property rights, as well as our unrestricted use on
commercially acceptable terms of certain technologies in our products, services
and solution offerings; 9) our ability to protect numerous Nokia and Nokia
Siemens Networks patented, standardized or proprietary technologies from
third-party infringement or actions to invalidate the intellectual property
rights of these technologies; 10) Nokia Siemens Networks' ability to achieve the
expected benefits and synergies from its formation to the extent and within the
time period anticipated and to successfully integrate its operations, personnel
and supporting activities; 11) whether, as a result of investigations into
alleged violations of law by some current or former employees of Siemens AG
("Siemens"), government authorities or others take further actions against
Siemens and/or its employees that may involve and affect the carrier-related
assets and employees transferred by Siemens to Nokia Siemens Networks, or there
may be undetected additional violations that may have occurred prior to the
transfer, or ongoing violations that may have occurred after the transfer, of
such assets and employees that could result in additional actions by government
authorities; 12) any impairment of Nokia Siemens Networks customer relationships
resulting from the ongoing government investigations involving the Siemens
>carrier-related operations transferred to Nokia Siemens Networks; 13)
occurrence of any actual or even alleged defects or other quality issues in our
products, services and solutions; 14) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the quality, safety, security
and timely delivery of our products, services and solutions; 15) inventory
management risks resulting from shifts in market demand; 16) our ability to
source sufficient amounts of fully functional components and sub-assemblies
without interruption and at acceptable prices; 17) any disruption to information
technology systems and networks that our operations rely on; 18) developments
under large, multi-year contracts or in relation to major customers; 19)
economic or political turmoil in emerging market countries where we do business;
20) our success in collaboration arrangements relating to development of
technologies or new products, services and solutions; 21) the success, financial
condition and performance of our collaboration partners, suppliers and
customers; 22) exchange rate fluctuations, including, in particular,
fluctuations between the euro, which is our reporting currency, and the US
dollar, the Chinese yuan, the UK pound sterling and the Japanese yen, as well as
certain other currencies; 23) the management of our customer financing exposure;
24) allegations of possible health risks from electromagnetic fields generated
by base stations and mobile devices and lawsuits related to them, regardless of
merit; 25) unfavorable outcome of litigations; 26) our ability to recruit,
retain and develop appropriately skilled employees; 27) the impact of changes in
government policies, laws or regulations; and 28) our ability to effectively and
smoothly implement our new organizational structure; as well as the risk factors
specified on pages 10-25 of Nokia's annual report on Form 20-F for the year
ended December 31, 2007 under "Item 3.D Risk Factors." Other unknown or
unpredictable factors or underlying assumptions subsequently proving to be
incorrect could cause actual results to differ materially from those in the
forward-looking statements. Nokia does not undertake any obligation to update
publicly or revise forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent legally required.
Qualcomm Forward Looking Statements
Except for the historical information contained herein, this news release
contains forward-looking statements that are subject to risks and uncertainties,
including Qualcomm's ability to successfully design and have manufactured
significant quantities of CDMA components on a timely and profitable basis, the
extent and speed to which CDMA is deployed, change in economic conditions of the
various markets the Company serves, as well as the other risks detailed from
time to time in the Company's SEC reports, including the report on Form 10-K for
the year ended September 30, 2007, and most recent Form 10-Q.
www.nokia.com