Qualcomm Inc. and Philips Consumer Communications L.P. entered into a royalty-bearing, cross-license agreement for Code Division Multiple Access technology and products, said Qualcomm.
The deal “amicably settles litigation” that Qualcomm filed last year seeking a judicial determination that certain features of its products do not infringe on three patents held by Philips, as the company had contended, Qualcomm said.
Qualcomm said it granted Philips a license to develop, manufacture and sell CDMA subscriber units, including those for cdmaOne applications, and for the European Telecommunications Standards Institute’s proposed Universal Mobile Telephone System standard being referred to as wideband-CDMA.
It is the first time Qualcomm has licensed its W-CDMA technology, said Christine Trimble, a spokeswoman for Qualcomm.
Philips granted Qualcomm a license to use and sell CDMA products, and a license under patents relating to its Global System for Mobile communications technology, which Qualcomm may choose to use in the future, Trimble said.
Qualcomm President Harvey White said, “We are pleased to be able to settle our differences with Philips and expect to continue the important positive business relationships that the companies have established over the years.
“With Philips’ resources and reputation as a manufacturer of high-quality consumer products, we expect Philips to make a major contribution to the overall worldwide growth of the CDMA market.”
Philips Consumer Communications is a joint venture of Lucent Technologies Inc. and Philips Electronics NV.
