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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 178.29-1.6%Dec 12 9:30 AM EST

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To: barty who wrote (52729)6/23/2006 6:56:11 AM
From: slacker711  Read Replies (1) of 196953
 
The point here from Nokia's perspective is that they think their patent position is bigger than Qcom's and if that's the case what is fair and reasonable?

My version of fair and reasonable....forget the cross license, a 5% rate on all WCDMA chipset shipments from Qualcomm for Nokia and a 5% rate on all WCDMA handsets from Nokia to Qualcomm.

That is just about the best deal that I could ever see Nokia getting out of this. Qualcomm will go through all the problems of the spinoff rather than give a royalty free license to Nokia (or even a substantial cut).

That would hit their '07 earnings hard. Nokia could just take a provision every quarter on the balance sheet.

It definitely would hit estimates, but would any investors think that the money wouldnt eventually be collected? You might apply a discount but I doubt anybody, including Nokia, thinks they could get away without paying.

Slacker
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