Nokia 2007 Annual Report Download - page 125

standard setting organization, by seeking injunctions and exclusions notwithstanding Qualcomm’s
voluntary and contractually binding commitments to license such patents on fair, reasonable and non
discriminatory terms, or FRAND. In April and June 2007, Qualcomm filed counterclaims seeking a
declaration that, among other things, an agreement between the parties fulfilled and/or superseded
any obligations it owed to ETSI or to Nokia as a result of its ETSI undertakings.
In April 2007, Qualcomm filed an arbitration demand with the American Arbitration Association (AAA)
requesting a ruling that, among other things, our use of Qualcomm’s patents after April 9, 2007
constitutes an election by us to extend its license under the parties’ existing agreement. In July 2007,
Qualcomm filed an amended demand for arbitration alleging that our institution of certain patent
infringement proceedings against Qualcomm was a material breach of the license agreement between
the parties. We are vigorously defending ourselves against these claims.
By consent order of the Delaware Chancery Court, dated February 22, 2008, the parties consolidated
the AAA arbitration with the Delaware action. The parties are filing amended pleadings with the
Court, the last of which is to be filed by March 28, 2008. The parties’ claims relate to their disputes
concerning ETSI/FRAND and the subscriber unit license agreements. The court will be considering the
parties’ claims in a phased evidentiary process. The trial based on the evidence which can be
considered in the first phase is currently scheduled to begin on July 23, 2008. We continue to
vigorously defend our rights in this action.
As part of the consent order, the parties agreed to a “stand down”—for the duration of the first
phase of the Delaware action—of all patent infringement litigation where they will seek to stay all
such litigation with the exception of the ITC action, and the UK action. The patent stand down shall
not preclude reexaminations, nullity or invalidity actions or patent oppositions—so long as they are
separate from any infringement proceeding. Nor shall the stand down preclude the parties’ right to
pursue or initiate antitrust or competition claims.
In October 2006, Qualcomm filed a patent infringement lawsuit against Nokia in France. This lawsuit
involves two European patents (France) that Qualcomm apparently contends apply to the manufacture
and sale of certain GPRS phones. This case is covered by the stand down. In addition, in October 2006,
Qualcomm filed a patent infringement lawsuit against Nokia in Italy. This lawsuit involves two
European patents (Italy) that Qualcomm apparently contends apply to the manufacture and sale of
certain GPRS phones. Our defense and counterclaims were filed in December 2006. This case is
covered by the stand down.
In February 2007, Qualcomm filed a patent infringement lawsuit against Nokia in China, in the Beijing
Higher People’s Court. This lawsuit involves one Chinese patent that Qualcomm apparently contends
applies to the manufacture and sale of certain specified GSM handsets. This case is covered by the
stand down. In March 2007, we petitioned the Chinese patent office to invalidate the patent. This case
will proceed.
In February 2007, Qualcomm filed two patent infringement lawsuits against Nokia in China, in the
No. 2 Intermediate People’s Court of Shanghai. These lawsuits involves two Chinese patents that
Qualcomm apparently contends applies to the manufacture and sale of certain specified GSM handsets.
These cases are covered by the stand down. In March 2007, Nokia petitioned the Chinese patent office
to invalidate the patents. The case will proceed.
In March 2007, we filed separate complaints against Qualcomm in Germany and The Netherlands
requesting a declaration that Qualcomm’s European patents are exhausted in respect of products
placed on the EU market. In October 2007 and November 2007, the German and Dutch courts
dismissed the claims on procedural grounds, respectively.
In addition, in April 2007, Qualcomm filed a patent infringement action against Nokia in the Eastern
District of Texas. The lawsuit involves three patents that Qualcomm apparently contends apply to the
manufacture and sale of unidentified GSM, GPRS and/or EDGE phones. Our defenses and counterclaims
were filed in August 2007. This case is covered by the stand down. In August 2007, we filed
124