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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 172.98+1.1%Jan 2 9:30 AM EST

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From: Qgent4/5/2007 10:53:00 AM
   of 197074
 
Nokia is trying to have it both ways, they call Qcom's patent portfolio a huge tax. Then in the same breath and out of the other side of their mouth demands from Qcom a disproportionate tax, on the few patents they may have outside of the SSO's and TI cross license.

Nokia is playing right into Qcom's hand. Nokia states that Qcom's business model/tax is unfair and keeps prices of cell phones artificially high. Qcom argues that we license a portfolio not a patent and this keeps prices low and opens up competition for the little guys.

Nokia can't win both arguments. I honestly believe Qcom has done it's homework, and they must believe they have all their chips covered within Nokia's disclosures to the SSO's and TI's cross license.

Qcom should demand the bulk rate or average rate Nokia charges others in the SSO for the patents they need, Nokia will then have to abide so as not to discriminate and break any frand rules themselves.

Qcom should take Nokia's average rate plus the 20 Million paid and send Nokia a bill for the balance owed and due by Nokia prior to the 9th immediately.

Our business model will remain intact, we charge for the portfolio not a patent.

Nokia will then have to prove that Qcom is indeed infringing Nokia's IPR not included in a SSO or TI's cross license.

At any rate we are in for a long drawn out war.

Endgame, IMHO will be that Qcom's business model and portfolio will remain intact and be found to have significant savings to the business community compared to Nokia's individual patent tax on the few if any patents they may have on Qcom or others outside of the SSO's and TI agreement. Eventually, Nokia will be seen in the light for what it is, and ultimately forced to pay the balance owed.

What a tight rope Nokia is balancing on.

Qgent
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