Qualcomm Inc. (QCOM:US), a U.S. chipmaker facing lawsuits because of its royalty rates, expanded a licensing agreement with Nortel Networks Corp. (NRTLQ:US), North America's largest maker of telephone gear.
Nortel gains the right to use some of its partner's patents to make network products, Qualcomm said today in a statement. In turn, San Diego-based Qualcomm has permission to make and sell components for certain phones using Nortel's patents.
Qualcomm, which faces suits in the U.S. and Europe, also is under investigation by regulators in the European Union amid allegations the company overcharges Nokia Oyj and others on royalties. The company is negotiating with Nokia, the world's largest maker of handsets, to extend a royalty agreement that ends April 9.
Shares of Qualcomm rose 49 cents to $43.70 at 4 p.m. New York time in Nasdaq Stock Market composite trading (QCOM:US). They've gained 16 percent this year. Shares of Toronto-based Nortel climbed 19 cents to $27.22 in New York Stock Exchange composite trading.
Qualcomm didn't disclose the terms of the deal.
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