The world's top cell phone maker and Qualcomm Inc are in numerous legal disputes after a key cross-licensing agreement over technology patents expired in April 2007, worrying investors on both side of Atlantic.

The court in Mannheim said Nokia could appeal against the decision and a Nokia spokeswoman said the Finnish firm would consider this.

"Nokia is confident that its substantive claim is well-founded and is considering if it will appeal the court's decision," Anne Eckert said.

Nokia wanted the German court to rule Qualcomm's patents are exhausted and that it should not be able to charge twice for its patents, billing first chipset suppliers and then also handset makers.

Qualcomm technology ends up in Nokia phones through chips from Texas Instruments Inc, which pays for the use of Qualcomm patents.

San Diego-based Qualcomm said it was pleased with the ruling and expected a written decision within a few days.

Nokia has filed a similar complaint in The Hague District Court in the Netherlands, where the decision is expected next week. Nokia filed the suits to protest Qualcomm's practice of charging first rival chipmakers who use its technology and then also their end clients like Nokia.

Analysts estimate Nokia had been paying Qualcomm about $500 million per year before the patent expiry and wanted to cut the cost. Nokia says its patent portfolio is much stronger now than 15 years ago, when the original licensing deal was signed.

Earlier Tuesday, Nokia said it would continue negotiating with Qualcomm and played down a U.S. judge's recommendation to drop an investigation into the chip maker.

"We continue to negotiate," Nokia Chief Technology Officer Tero Ojanpera told a technology event in northern Finland.

Qualcomm said Friday it won a round in its legal battles with Nokia following a string of legal disappointments for the company this summer.

A judge recommended ending a U.S. International Trade Commission investigation of a complaint Nokia brought against Qualcomm as the two companies are already in arbitration proceedings related to a 2001 technology license agreement.

"I think Friday's ruling was more like a procedural one and not based on merits of the patents," Ojanpera said.

In yet another case, the ITC banned the U.S. import of some phones with Qualcomm chips that were found to infringe a patent owned by Broadcom Corp. The ban has been partially stayed while Qualcomm appeals the case.

Nokia's U.S. shares closed up 3 percent at $38.47 on the New York Stock Exchange. Qualcomm stock finished up 26 cents at $41.13 on Nasdaq.

By: DocMemory
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