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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: JGoren who wrote (72970)1/2/2008 11:59:52 AM
From: Art Bechhoefer   of 196958
 
. . . the rate for a Qcom license should now be 10%.

Agree. The latest court ruling, which on the surface looks bad for QCOM, in fact establishes a precedent justifying perhaps twice the royalty rate QCOM has obtained from existing licensing agreements. QCOM might want to sit down and negotiate rates for essential and non–essential IP, but the court has made possible a lot more royalty revenue for QCOM than had existed before. I also agree with earlier comments that the ruling has really damaged the FRAND arguments set forth by Nokia and its allies

Maybe Nokia will now be interested in renewing its licensing agreement with QCOM at the old rate -- before QCOM begins to insist on even higher rates for all new licensees or relicensees.

Art
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