Nokia and Qualcomm have agreed to end their worldwide legal battle over patents.

Yesterday saw a German court throw out Qualcomm's claims but the two had pending legal action in the US, the UK, Germany, France, Italy and China. The deal therefore came as a surprise.

The settlement ends all litigation between the two companies.

The 15-year agreement gives Nokia a license to use Qualcomm's patents in its handsets and in Nokia Siemens Network equipment. Nokia has also agreed "not to use any of its patents against Qualcomm" - so Qualcomm can include Nokia technology in its chips.

The deal also includes an upfront payment from Nokia to Qualcomm and the payment of future royalties. Nokia has also agreed to hand over some essential patents for WCDMA, GSM and OFDMA to Qualcomm but the terms of this arrangement are secret.

Shares in both companies rose on the news. Nokia's finance boss Rick Simonson told AP: "This is one where saying this is important is not an overstatement. It's a big relief for everybody."

The full press release is available here. ®

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