Qualcomm rejects $27M Nokia payment

Licensing dispute set to drag on

Qualcomm has rejected a US$20 million (NZ$27 million) payment from Nokia for royalties on patented Qualcomm technology, snuffing out a possible resolution of part of the companies' ongoing intellectual property dispute.

A series of long-term licensing agreements between the companies expired last week. Nokia said last week that it had paid Qualcomm US$20 million to cover licences for 3G (third-generation) mobile phone technology through the end of the current quarter on June 30. However, the payment was not to extend the deal that expired Monday, Nokia says.

Qualcomm told Nokia on Wednesday that it had turned down the money "and the accompanying multiple pages of terms upon which Nokia conditioned its payment," Qualcomm said in a press release.

"Both the amount of the payment and the terms that Nokia sought to unilaterally impose in connection with it are at odds with the parties' 2001 licence agreement," Qualcomm said.

Nokia could not immediately be reached for comment.

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