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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 178.29-1.6%Dec 12 9:30 AM EST
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To: Dexter Lives On who wrote (118392)5/9/2002 10:08:44 PM
From: David E. Taylor  Read Replies (1) of 152472
 
rob:

I was kidding, as the <g> indicated.

This Nokia call to limit royalties to 5% is as two faced as things can get. As I posted on the other thread:

Message 17446533

The Euro GSM IPR holders (nokia included) have been milking the GSM cow to the tune of around 29% royalties for donkeys years, and using those royalty rates to create their monopoly position in the marketplace and shutting out Asian and other competition by making them pay huge royalty rates - see the excellent analysis of GSM IPR development posted by Ramsey:

www-edocs.unimaas.nl

The only reason that Nokia is making such a noise is that they see an end to the cash cow of GSM IPR royalties that they have been milking for so long.

Now, having signed a licensing agreement for CDMA technology with Qulacomm, without which they can sell no infrastructure equipment or handsets, they are mounting a PR campaign to paint the miserly 4.5% or so Qualcomm gets as excessive.

As I said on the other thread, people in glass houses shouldn't throw rocks. Time someone pointed out how high the rates are on GSM handsets. If Nokia et al had been forced to live with a 5% cap, their margins would look much leaner than they have.

David T.
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