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Nokia and Huawei Reach Agreement on Patent Cross-License for 3G Mobile Technology

March 10, 2003

Nokia and Huawei Technologies, the Chinese vendor for communications equipment and network solutions have signed an agreement on cross-licensing of WCDMA related patents covering the manufacturing and sales of WCDMA infrastructure equipment globally.

The agreement ensures both companies to access each other's state of the art IPR's under the WCDMA standard at a very competitive royalty rate.

The signing of the agreement demonstrates Nokia's commitment to partnering with local vendors in promoting WCDMA technology in China through lowering the threshold of technology transfer. It is also an important milestone for Chinese vendors to enter into international cross-license practices and the global WCDMA market. WCDMA has been adopted as the 3G technology standard by the majority of the world's mobile operators.

"Nokia is fully committed to develop its local capability of manufacturing advanced mobile telecommunications equipment in China. We are very happy to cooperate with Chinese vendors like Huawei on this kind of agreement. It represents an important beginning of a process to make state of the art technologies available to more and more domestic manufacturers. Nokia is very happy to be in a position to be part of this process. Eventually, the benefits from this agreement will reach all the members of the industry in China." Says David Ho, Vice President of Nokia Networks China.

"While building up our own IPR basis, Huawei is also keen on IPR related cooperation with world leading manufacturers like Nokia. The WCDMA patent cross-license agreement between the two companies demonstrates our strong commitment to WCDMA," says Xu Zhijun, Vice President of Huawei Technologies.

WCDMA is the most efficient technology for integrated mobile voice and data networks, claimed Nokia. WCDMA - like GSM/EDGE technologies - is a fully standardized global solution with open interfaces. WCDMA is fast emerging as the global standard of choice for next-generation communications, with 85% of the global 3G network markets expected to be based on WCDMA said Nokia.

 


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