Aug. 17 (Bloomberg) -- Nokia Oyj, the world's biggest maker of mobile phones, asked U.S. trade officials to ban imports of handsets containing Qualcomm Inc. chipsets, raising the stakes in their battle over technology-licensing fees.

Nokia, based in Espoo, Finland, filed the complaint yesterday at the U.S. International Trade Commission, a Washington agency that can stop imports of products that infringe U.S. patents. The Finnish company said Qualcomm used ``unfair trade practices'' in relation to five of its patents.

The complaint is a new front in a dispute between Nokia and Qualcomm, the world's second-biggest maker of phone chips. They are at odds over how much Qualcomm should receive in royalties for ``third-generation'' phones that allow faster Internet access. Nokia wants lower fees after a cross-licensing deal expired on April 9, arguing Qualcomm has less intellectual property in the newest technology than in older products.

``The companies are going to pursue every avenue to exert pressure on the other side,'' said Mike Burton, a San Francisco- based analyst at ThinkEquity Partners who has a ``buy'' rating on Qualcomm's stock and owns none. ``These back-and-forth challenges are going to take time before you reach a final resolution.''

Qualcomm filed its own complaint against Nokia with the commission a year ago. In that case, scheduled for trial next month, San Diego-based Qualcomm is seeking to ban some Nokia phones from the U.S. market, claiming they infringe three of its patents.

Samsung, LG

Nokia declined to say which handset makers could be affected by the import ban. Qualcomm's chipset clients include Samsung Electronics Co. and LG Electronics Inc., both based in South Korea. Samsung spokeswoman Chris Goodhart and LG spokesman John Taylor declined to comment.

Qualcomm and Nokia say they want to reach an agreement. Qualcomm said it is trying to reach a settlement with Nokia ``in the most straightforward and timely fashion, ensuring both sides get a fair, competitive deal.''

``Fundamentally, this is a dispute over the terms of the existing license agreement and continuing obligations under that agreement,'' spokeswoman Emily Gin Kilpatrick said in an e-mailed statement. ``We are attempting to resolve the core issues through arbitration rather than through further litigation.''

Nokia Chief Financial Officer Rick Simonson said the company is talking with Qualcomm in ``good faith'' to find a new ``mutually acceptable'' cross-license agreement. He said he hopes to find a solution on a ``timely'' basis, without elaborating.

The trade commission usually grants requests to investigate infringement complaints and makes a decision within 15 months.

Legal Disputes

The patents relate to chipsets based on code division multiple access, wideband code division multiple access and global system for mobile communications, or GSM. Nokia said the patents relate to technologies to improve the performance of wireless-communication devices and lower manufacturing costs.

``There is significant evidence to warrant an ITC investigation into Qualcomm's business conduct,'' Simonson said in an e-mailed statement. ``We are taking this action to stop Qualcomm's practice of copying Nokia's patented technology, without permission, and making these innovations available to its chipset customers.''

The complaint notice was posted on the agency's Web site.

Qualcomm shares rose 61 cents to $37.54 in Nasdaq Stock Market composite trading. Nokia gained 70 cents, or 3.3 percent, to 21.72 euros in Helsinki trading. The stock has gained 40 percent this year, valuing the company at 85.4 billion euros ($115.3 billion).

Qualcomm's Complaint

Nokia has called Qualcomm's earlier patent-infringement case before the ITC ``weak,'' and says its rival's patents are invalid.

The complaints are part of a wider battle between the two companies in courts and before government agencies in the U.S., Great Britain, Germany and the European Union.

``We are seeking the same remedies Qualcomm has sought against Nokia in multiple venues around the world,'' Simonson said. ``Nokia will continue to ensure its rights and competitive advantage'' are protected, he said.

Qualcomm also has patent fights with rival chipmaker Broadcom Corp., which this month said it would supply chips to Nokia. Qualcomm is appealing an ITC finding that it infringed a Broadcom patent for a battery-saving feature.

In that case, the agency said the only way to prevent Qualcomm chips from entering the U.S. was to ban the phones containing them. Phone-service providers Sprint Nextel Corp. and AT&T Inc., along with handset makers including Samsung and LG Electronics, seek to stop a ban from taking effect while the patent case is appealed.

Qualcomm reported last month quarterly profit and revenue that topped analysts' estimates after chip sales rose 21 percent as mobile-phone makers such as Samsung ordered more for their latest handsets. Texas Instruments Inc. is the world's biggest maker of chips that run mobile phones.

To contact the reporter on this story: Susan Decker in Washington at sdecker1@bloomberg.net; Juho Erkheikki in Helsinki at jerkheikki@bloomberg.net.

Last Updated: August 17, 2007 16:56 EDT