October 16, 2008 / 11:54 AM / 11 years ago

Nokia to make $2.29 billion payment to Qualcomm

HELSINKI (Reuters) - Nokia NOK1V.HE said on Thursday it will make a one-time payment of 1.7 billion euros ($2.29 billion) to mobile chipmaker Qualcomm (QCOM.O) as part its patent agreement with the U.S. firm. The top cell phone maker said the payment would be made during the fourth quarter and expensed quarterly over the term of the 15-year agreement that was first announced in July.

“As a result of the agreement ... and certain other license agreements concluded during the third quarter 2008, Nokia incurred a slightly positive impact to its gross margin during the quarter, as the royalty provisions earlier recorded well covered the related obligations,” Nokia said in its result.

Reporting by Brett Young; editing by Elaine Hardcastle

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