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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 176.16

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To: lml who wrote (63001)	4/23/2007 11:34:23 AM
From: Art Bechhoefer	Read Replies (1) of 196870

To add to your comment that QCOM should not give in to Nokia, I would simply remind everyone that Nokia has effectively cancelled its current license by not paying royalties at the rate set in the agreement. QCOM has a right to go after any equipment or service provider selling Nokia chips or handsets that infringe QCOM patents. What do you think a typical service provider would do under the circumstances? Would they risk getting involved in litigation precipitated by their selling equipment containing Nokia products that infringed? I don't think so. My point is that Nokia, through its present actions, risks losing a tremendous part of its cell phone business to competitors like Motorola, Samsung, and LG. When Nokia's board of directors finally realizes the dilemma that management has created, I doubt whether they will permit this situation to go on for very long. Assuming that, irrespective of the above, Nokia management persists in its current actions, the break will come when the EC rules against Nokia, as it must, for a variety of reasons, including the fact that the royalties Nokia pays to QCOM are no more (if not actually less) than what competitors pay, and the fact that 140 licensees are paying those royalties, and only one is not. QCOM need not negotiate a settlement with Nokia that is any different from that reached with the 140 other licensees. That's hardly what one could call anticompetitive. Art

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