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Texas Instruments has counter-sued Qualcomm, claiming that the San Diego company is fibbing about it, and offering discounts to handset manufacturers who swear not to deal with the company. Precise details of the suit are secret.

"We have received reports that Qualcomm is offering handset royalty discounts to handset manufacturers only if they purchase CDMA chipsets from Qualcomm," said TI counsel Joe Hubach in a canned statement.

Qualcomm brings in a billion dollars a quarter from its chipset business, almost a third is pure profit, and TI and Nokia want some of this action. Back in July, Qualcomm sued TI , weeks after a pact between Nokia, TI and manufacturer ST Micro.

Nokia has a healthy bunch of CDMA patents of its own, while Texas Instruments signed off a licensing agreement with Qualcomm in December 2000, which is the basis for the current litigation. ®

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