Qualcomm dispute ends in $80m royalty charge

Digital wireless communications company, Qualcomm, has been charged $80m, over a royalty dispute with Korean Electronics and Telecommunications Research Institute (ETRI).

The International Court of Arbitration (ICA) yesterday awarded Korean earnings from Qualcomm's code division multiple access (CDMA) wireless standard, to be shared with joint developer ETRI. In a statement, Louis M. Lupin, senior vice president and general counsel of Qualcomm, said: "While we are disappointed by the ICA's decision, we continue to look forward to receiving strong royalty revenues from sales of CDMA equipment in Korea." Lupin added: "The ICA's decision does not in any way affect Qualcomm's ability to collect royalties on CDMA, WCDMA or other CDMA-based standards, and has no impact on the ability of Qualcomm to collect royalties from sales of CDMA equipment in Korea." Qualcomm additionally reported that it will consider its options in regard to the ICA decision, with shares down 3.63per cent at the close following the announcement.