Nokia Wants More Qualcomm Chips Banned
Unwilling to let Qualcomm’s harried attorneys rest, Nokia complained to the U.S. International Trade Commission that Qualcomm committed unfair trade practices by infringing five Nokia patents in its CDMA and WCDMA/GSM chipsets, it said Friday. Nokia wants an ITC ban on import of the chipsets and devices using them, as occurred with Qualcomm chips infringing Broadcom patents. The Thursday filing came the same week a federal judge in Santa Ana, Calif., ordered Qualcomm to pay Broadcom double damages and attorney’s fees (CD Aug 15 p10) and less than two weeks after the president declined to veto the ITC ban (CD Aug 7 p3) and a San Diego judge ruled against Qualcomm in a separate Broadcom patent dispute (CD Aug 8 p6).
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“There is significant evidence to warrant an ITC investigation into Qualcomm’s business conduct,” said Rick Simonson, Nokia chief financial officer. The Nokia patents involve technologies that improve wireless device performance and efficiency, reducing manufacturing costs and product size and increasing battery life, Nokia said. Qualcomm declined to comment on the ITC filing.
That Qualcomm last year filed with the ITC against Nokia was one reason Nokia went to the commission for an injunction, Simonson said: “We are seeking the same remedies Qualcomm has sought against Nokia.” In 2006, Qualcomm filed an ITC case against Nokia alleging infringement of GSM patents. A hearing in that case is set for September, Simonson said. Nokia, now in “good faith” talks with Qualcomm, hopes to reach an accord “on a timely basis,” he said. Nokia also may have gone to the ITC because that route sidesteps court discovery battles and speeds resolution, said attorney Jay Sandovs.
The ITC typically responds to complaints in 30 days, but it’s up to the ITC to decide when to start an investigation, a Nokia spokeswoman said. Qualcomm and Nokia have extensive intellectual property portfolios, and “odds are they do have some patents that overlap,” said Stifel Nicolaus analyst Cody Acree. But the filing of a complaint doesn’t mean the ITC will respond, he said. The next brawl probably will be at the September ITC hearing on Qualcomm’s complaint, he said. Sandovs does not expect the ITC to stay silent on Nokia’s complaint, but doesn’t expect any formal activity in the case for six months to a year, he said.
The new complaint follows two weeks of Broadcom-related bad news for Qualcomm, including the president’s decision not to veto the ITC chip ban and the unfavorable court decisions. Those decisions have nothing to do with Nokia’s filing, said a company spokeswoman. Thursday’s filing responds to Qualcomm’s 2006 ITC filing against Nokia, she said, but is “independent of other activities.” Nokia may not be piggy- backing on Broadcom’s success, Acree said. Rather, the flurry of Qualcomm litigation activity could just be “cases coming to a head all at once,” he said. Sandovs disagreed that none of Broadcom’s litigation gave Nokia impetus to file. The decision against a veto reinforced the integrity of the ITC process, likely encouraging Nokia to expect that a commission decision in its dispute would stand, he said. And an ITC-wary Qualcomm may be inclined to negotiate with Nokia, he said.