SAN DIEGO-Qualcomm Inc.’s financial expectations from its CDMA technology fell on account of the ruling by the International Court of Arbitration of the International Chamber of Commerce that it share royalties with the Korean Electronics and Telecommunications Research Institute.
The award, based on the joint development agreement between both parties in 1992 to September 2000, requires Qualcomm to share a one-time charge of about $80 million as well as interest and other costs with ETRI. It will also share a part of the sales royalties Qualcomm receives from CDMA equipment in Korea.
“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,” said Louis M. Lupin, Qualcomm’s senior vice president and general counsel.
