Mighty, the language is purely face-saving to Nokia. In my opinion, the deal includes all the GSM IPR Q needs, and Q does not need to pay for it. Nokia, however, does pay standard industry rates to Q. The language has to be carefully examined:
Nokia has also been granted a royalty-bearing license under Qualcomm's patents to make and sell infrastructure equipment for all CDMA wireless systems while Qualcomm is granted rights under Nokia's CDMA-related and other patents to market and sell CDMA components, including multi-mode integrated circuits.
First, the Nokia license is royalty-bearing to Q. Clearly says so.
Second, the "cross-license" to Q is not specifically said to be royalty bearing. If it were royalty bearing to Nokia, it would have insisted that the announcement say so. However, there is only so much face-saving Q could do. Q's rights are free. This is perhaps the best part of the announcement. There was no need to trade any CDMA IPR.
Third, Q is granted rights to "...CDMA-related and other patents to market and sell CDMA components, including multi-mode integrated circuits"
The "other patents" language is the heart of the face-saving to Nokia. It means, in my opinion, that Nokia is allowing Q to use necessary GSM IPR so that it can make and market "multi-mode integrated circuits.", i.e., those that include WCDMA and GSM.
There is no other logical way in which to read the language. Why would Q license Nokia if it didn't get the GSM IPR it needs? Why leave that dangerous loose-end dangling? Isn't it curious that the deal is made on the eve of Spinco's birth? Spinco is not going to happen, in my opinion.
The deal was driven by Nokia's need for infra IPRs so that it could get UMTS built out. Without infra IPR, its plans to support UMTS, and be the infra leader, are dead in the water.
A magnificent negotiating victory for Q particularly as Nokia pays standard royalty rates.
The wars are over. No more Nordic FUD. |
