Nokia to pay Qualcomm $2.3 billion in royalty settlement
Nokia announced the impending one-time payment on Thursday, when it reported its third-quarter financial results, according to The Times. As a result, Qualcomm’s shares gained $2.60, or percent, to $38.89. Nokia’s shares jumped $1.50, or 10 percent, to $16.57.
The lengthy legal battle stemmed from how much in royalties Nokia, which is based in Espoo, Finland, should pay Qualcomm for using its chips in cell phones that run on third-generation, or 3G, wireless networks, according to The Times.
They also disagreed over how long Nokia should pay.
Nokia said it would pay 1.7 billion euros, which was $2.3 billion at Thursday’s exchange rate, in the fourth quarter to settle the dispute, while a Qualcomm spokeswoman said the company would receive $2.5 billion but would not explain the discrepancy or comment further, The Times reported.
Qualcomm faces other legal challenges and patent battles with its chief rival, Broadcom Corp. of Irvine.