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November 29, 2007

QCOM v. NOK: Keeping Track of the Arbitrations

Analysis of: QCOM Wins a Round in Patent Battles with Nokia | www.reuters.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Douglas Lichtman, Professor of LawDouglas Lichtman
Professor of Law, University of California, Los Angeles
Implications: The ITC this week declined to puruse a complaint filed by NOK, explaining that an investigation would be inappropriate given the pending QCOM/NOK arbitration.

Analysis: QCOM and NOK have a number of litigations underway, the main one being the up-coming fight at the European Commission.  In many of the satellite skirmishes, however, the relevant decision-making bodies have been delaying their work in light of the pending arbitrations between NOK and QCOM. 

There are two arbitrations gumming up the works: one involving GSM, the other involving the CDMA/WCDMA contract that expired in April.  The arbitrations thus get in the way no matter which patents are at issue.  In GSM fights, it is the GSM arbitration that leads to delay.  In CDMA/WCDMA fights, it is the W/CDMA arbitration.

Now admittedly not all cases are being stayed in light of these arbitrations.  And, indeed, the GSM arbitration has long been rumored to be almost over.  Still, what we continue to see on the ground is that most of the legal battles are being delayed in favor of the arbitrations; and, ironically, the upshot will be to make the EC inquiry all the more important.  After all, if most of the patent and ITC cases are barred from making significant progress for the next 12-18 months due to the arbitrations, the EC will have time to run a big chunk of its process before any other entity rules.


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