C2/ Jeffrey, Re: NOK6 (POS) complaint CC transcript and Raising Royalty rates >>>
“3.- Newer and presumably more valuable patents [OFDM, HSDPA, HSUPA, MIMO, etc.] are being negotiated thanks to expiring licenses or because they aren't part of existing licenses thanks to their relative youth. The deals offered are perhaps a bit more expensive than the makers are accustomed to paying. Hence, the complaints and the litigation.”
“As to the last point (i.e. the greater value of more advanced data IPR), PJ echoed the same at GS today. Perhaps, management have heard Maurice, and are actually trying to raise royalties”
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Help me out here guys. I read the sketchy “news conference (limited to 3 folks from Bloomberg / reuters??) ” Q&A and did NOT get the impression that the Q was raising it’s royalty rates for 3GSM (WCDMA). What gave you that impression???
1. It’s my understanding that the Q is charging the same for 3GSM as it is for CDMA2000---~5%
2. Did not the Q state that both Ericy and Panasonic signed WCDMA licenses knowing exactly what the WCDMA rate was prior to the adoption of the standard?
Altman’s Briefing Chart- Nov 05 London Day>>>
What they claim:Absent QUALCOMM's commitment, the WCDMA standard would not have
been adopted.
•What we know:
•Widely acknowledged that original proponents of the WCDMA standard tried to design around QUALCOMM's patents and were unsuccessful
•Ericsson and Panasonic signed agreements covering WCDMA with QUALCOMM prior to the adoption of the standard
•Nokia was in active negotiations with QUALCOMM prior to adoptionof the standard
•QUALCOMM had licensed many companies for WCDMA well prior to roll out
Altman’s statement from the Nov 2005 London Day Presentation>>>>>
The other thing that I wanted to point out is that there's not an additional QUALCOMM royalty above our standard WCDMA, CDMA2000 royalty rate. So what this means is if you look back over the last 10 years, you've seen that our patent portfolio has grown very substantially. We haven't increased our royalty rate during that time, so a licensee gets access to more and more of our patented technology. As we make more and more investments, as Paul talked about, with the chart that showed all the increasing R&D investments, all of these technologies get licensed to our licensees without an additional royalty rate requirement, and those can get incorporated into a CDMA phone, and they get the benefit of that increased R&D.
An example of that is also taken in the multi-mode context, so in a CDMA phone, we're talked about the Flarion acquisition as we continue to get OFDMA intellectual property. In a CDMA phone under our license agreement, a licensee can do a CDMA OFDMA phone and there would not be an additional increased royalty above the standard rate. So unlike if we did not do the acquisition, and OFDMA and CDMA were combined in a phone, Flarion's intellectual property would not be covered, and these companies would have to then go individually negotiate with Flarion.
This just kind of shows you once again that although our patents have grown in terms of the number over time, again, to point out that our royalty rate over the past decade has remained the same, our standard royalty rate. |
