HELSINKI--The German Federal Patent Court ruled on Wednesday that a Qualcomm GSM patent asserted in a case against the world's top cell phone maker Nokia was invalid.
The companies have been at legal loggerheads since failing to renew a technology license pact that expired on April 9, 2007.
Analysts estimate that Nokia pays around $500 million a year for the use of Qualcomm patents and it wanted to reduce the sum. Under an agreement reached Wednesday after the German court decision, Nokia, the world's top cellphone maker, agreed to make an upfront payment and pay royalties to the U.S. technology company, but said payments per phone would fall.
"Today's decision is further evidence that Qualcomm does not have relevant and valid GSM patents and that it overstates its role as a wireless innovator," Nokia said.
A hearing on a second Qualcomm patent in the German court case is scheduled for October.
In late afternoon Nasdaq trading, Qualcomm shares were up 0.2 percent to $44.20. Nokia shares gained 0.06 percent in Finland.
Story Copyright 2008 Reuters Limited. All rights reserved.
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