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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 161.39

-1.9%

3:59 PM EST

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To: Jim Mullens who wrote (50705)	3/1/2006 2:55:14 PM
From: kelseysuncle	Read Replies (1) of 197227

Slacker re: NOK6 (POS) / Q raising royalty rates, and your comments>>>> “Well, my interpretation of PJ's comments are the following.... - The licensee gets access to all of Q's patents at the time of the license AND for new patents for a certain set period of time. - The license has an expiration date that is unrelated to the expiration of particular patents. The licenses are then renegotiated and typically the same rate applies going forward.” Agreed. The license is for a given period of time and includes ALL new patents developed / acquired during that time. JIM, slacker, c2: FWIW, I think there is a confusion here about two different things, the royalty rate and the license fee. If you remember several years ago QCOM would regularly announce the signing of new licensees. The announcements for big players always included a phrase qualifying the value of the license as "multi-million dollar" or major revenue producing or for smaller players something like "for future considerations". QCOM seems to have stopped announcing the value of the upfront fee for the license agreements when the accounting rules changed, forcing them to spread out the recognition of the revenue over a period of time that I don't quite remember. My point is that there have always been different upfront fees for a license agreement for different companies. After the initial agreement, there is also a constant royalty rate that applies no matter how many individual patents one uses or what new patents QCOM obtains during the period of the license. I assume that old license agreements are expiring and are being renegotiated and are what the group of six are complaining about. All IMO and FWIW ku

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