Qualcomm, Nokia consider outside help for dispute

Las Vegas, Jan 9: Wireless chip company Qualcomm Inc. and mobile phone maker Nokia are considering arbitration to resolve their licensing dispute because they are so far from reaching an agreement, Qualcomm Chief Executive Paul Jacobs said.

The companies have been in negotiations about renewing their wireless technology licensing agreement, which expires in early April, but are nowhere near reaching a deal, Jacobs said in an interview with Sources at the Consumer Electronics Show.

A deadline or the introduction of a third party, such as an arbitrator into the talks may be the only way to resolve the licensing pact renewal, Jacobs said. He added no decision has yet been made.

''These are some of the things we've talked about with Nokia,'' Jacobs said. ''At this point we're going to have to get some external impetus to get this going,'' he added. ''We aren't making much progress on the substantive issues.'' Qualcomm is the dominant chip supplier for CDMA, the most widely used mobile phone technology in the United States. It also sells technology licenses and chips for W-CDMA, the high high-speed mobile technology being used in Europe.

As well as its contract discussions with Nokia, Qualcomm is involved in several other legal disputes, including ones with rival Broadcom Corp. over patents and competition.

It also faces a complaint at European regulators from companies, including Nokia about its competitive practices.

South Korean regulators also contacted the company for information about its competitive practices in April 2007.

Jacobs said he did not have any update on Qualcomm's position regarding South Korean or European regulators.

REUTERS