Nokia Announced 3% Aggregate Gross Royalty for WCDMA

The payment that big companies have to make for certain concessions of commercial value or to the ownership of a copyright, patent, trademark or know-how for its use is most often quite expensive.

Recently Nokia announced the aggregate gross royalty payment that the company has operated until this year for Wideband Code Division Multiple Access handsets. Although the announced 3 per cent aggregate license fees on WCDMA handset sales seem low, they don't include other related royalty payments such as infrastructure and royalty income.

The W-CDMA is a type of 3G cellular network with the highest speed transmission protocol used mostly in Japan in the advanced systems.

The payment for the concession of commercial value regarding WCDMA handset sales were made to QUALCOMM after the company granted newer set of exclusive rights for the official partners. The rights are given to prevent or exclude others from making, using, selling, offering to sell or importing the claimed invention. For regular clients, Nokia won't be able to market any product without QUALCOMM's official approval.

The world leader in global communication has recently signed a contract with Qualcomm that assures it a fully paid up license and covers all the Qualcomm new rights.
Starting April 2007 Nokia paid for all exclusive rights that are granted by state to Qualcomm patentee, the company that invented the assignee for a limited period of time.

We all know that nothing is free in the mobile industry, so Nokia, contractually, must give in exchange public disclosure of certain matters or methods that are inventive, industrially applicable and most of all useful.

Not a tough thing to do for Nokia if we take into account the fact that QUALCOMM is among the Worldwide Top 20 Semiconductor Sales Leaders in the industry.