NEW YORK – Qualcomm Inc raised its forecast for the full-year 2008 after announcing a legal settlement and a technology licensing deal with Nokia . sending its shares up more than 21 percent.

The wireless technology license and chip supplier said it was raising its guidance on the strength of growth in phones with high-speed Web links, even before adding new royalties and an upfront payment from Nokia.

Qualcomm and Nokia announced the legal settlement late on Wednesday, ending their three-year litigation that spanned three continents. The companies also announced technology license agreements for multiple technologies.

Qualcomm said its fiscal year 2008, pro forma earnings per share, excluding items such as its investment arm, would be $2.11 to $2.13 on revenue of $10.3 billion to $10.5 billion compared with its previous forecast for earnings of $2.09 to $2.13 per share on revenue of $10 billion to $10.4 billion.

In addition the company said it expected the agreement with Nokia to add another 7 cents to 13 cents a share to fiscal 2008 earnings, although it said it was still in the early stages of working out the deal mechanics.

It told analysts on a conference call that the pact would raise fiscal 2009 earnings per share by 20 cents to 28 cents, including Nokia royalty payments and lower legal expenses.

The companies did not announce the financial specifics of the deal but Qualcomm executives said the settlement involves a ”very substantial upfront payment” from Nokia.

Some analysts had worried that a lowering of royalty rates paid by Nokia to Qualcomm under the new agreement would incite other Qualcomm customers to bring their own legal suits. But Qualcomm dismissed these concerns.

“If we offer the package and terms of the Nokia agreement to other licensees I would be very happy if they would accept it,” a Qualcomm executive said on the call.

Qualcomm forecast fourth-quarter earnings per share of 49 cents to 51 cents on revenue of $2.5 billion to $2.7 billion.

Shares of Qualcomm were up $9.55. or 21.3 percent, at $54.37 in morning trade on Nasdaq. Nokia shares were up 4.1 percent at 17.65 euros in late trade on the Helsinki stock exchange. (Reporting by Sinead Carew in New York and Tarmo Virki in Helsinki; Editing by Derek Caney, Maureen Bavdek, Dave Zimmerman)