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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 180.72-0.1%Nov 3 9:30 AM EST
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To: carranza2 who wrote (139752)10/31/2005 10:08:58 AM
From: slacker711  Read Replies (1) of 152472
 
Using your example, and substituting NOK in place of Samsung as a company that develops and uses its own chipsets, why would NOK join into the EEC fray? It gets the best deal of all from a royalty cost standpoint.

Well, they may believe that the other complaints have a shot....but even if they dont, what's the risk? At a minimum, this antitrust complaint keeps Q's lawyers (with attendant costs) busy for the next few years.

I think some others upstream have talked about playing hardball and not renewing Nokia's license. This isnt much of an option since Qualcomm wouldnt be able to produce WCDMA chipsets without Nokia's patents. If Qualcomm couldnt produce chipsets and Nokia couldnt produce handsets, it would absolutely destroy the WCDMA handset market, so it isnt like Qualcomm can just sit back and collect royalities either.

A couple of questions that I have though....is the agreement with the standards organisations to offer FRAND IPR deals legally binding? I assume that FRAND isnt a requirement of IPR law in general.

Also, is "tying" only illegel in the case of monopolies? It would seem to me that Apple ties their OS to their hardware but it isnt illegel because they have so little market share. Do I understand that correctly?

Slacker
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