Qualcomm targeted by counter-suit from Nokia

Qualcomm, which develops technology used in tens of millions of mobile phones, has suffered another setback after Nokia filed a patent infringement counter-suit against the Californian company.

Mobile phone technology design disputes have been rumbling for many years but until now, had little impact on consumers rushing to buy the latest handsets. However, the International Trade Commission's decision to ban the importation of new handsets that use Qualcomm's chips into the US last week as a result of a patent spat between the Californian group and its US rival Broadcom has thrown the issue into the spotlight. The patent disputes represent a battle between companies that design the chips that power phones to grab a slice of the lucrative market for high-end handsets. Companies that can establish a relevant patent for chip designs stand to make billions with the technology built into the next generation of mobile phones.

Qualcomm, run by Paul Jacobs, and Nokia have traded a series of legal blows over the past two years after the world's largest mobile phone maker lodged a complaint with the European Commission over the US company's alleged anti-competitive behaviour back in 2005. The two companies disagree over what Nokia should pay Qualcomm to use its rival's technology in its handsets.

The dispute between the two companies shows no sign of abating after Nokia filed a lawsuit in a Texas district court over claims that Qualcomm is illegally using six of the Finnish company's patents. It said Qualcomm is using technology developed by Nokia for its Brew and MediaFlo products that enable fast, high-quality transfers of audio and video content to subscribers. Nokia is seeking damages and an injunction against the US chip maker.

Tero Ojanpera, Nokia's chief technology officer, said: "This is another example where Qualcomm has effectively copied Nokia's innovations. We believe that, for MediaFlo to evolve and for Brew to remain viable, Qualcomm needs access to these and many other patented Nokia inventions."

The Finnish company said the legal action was a response to a Qualcomm filing in April in Texas that accused Nokia of infringing on three of its patents. Nokia has argued the patents are invalid as the relevant technology has been patented or published by other companies prior to Qualcomm registering its patents.

Broadcom said it was not surprised by Nokia's claims and said it would continue to seek independent arbitration to resolve its dispute with Qualcomm. It has argued that Nokia is trying to stifle competition in an effort to maintain high margins.

Last week, the ITC ruled Qualcomm was infringing on Boradcom's patents and ordered a ban on importation of phones made by the likes of Motorola, Samsung and LG that use the technology.