if you are right then Qualcomm's WCDMA chipset sales are also going to be at risk
Slacker, if I recall correctly, QCOM has a cross licensing agreement with Texas Instruments, which allows QCOM to design and sell WCDMA chipsets. QCOM may also use additional IP from Nokia, in which case the termination of the QCOM-NOK license would cause some trouble.
Regarding treble damages, it is my understanding that they apply to an infringement of a U.S. patent (irrespective of where the products are sold) if a jury in a federal court finds that the infringement was intentional. The treble damages in the U.S. statute are designed to deter a company from infringing patents.
As a practical matter, patent cases often are resolved before a trial takes place because of the time and expense for both sides. The QUALCOMM-Ericsson case was resolved following a hearing, in which both sides have an opportunity to place their cards on the table and get an opinion from a judge as to who would most likely prevail at trial. At that point (about April, 1999, if I recall correctly), Ericsson decided it would be better to settle with QCOM, the price for which included Ericsson's agreement to purchase QUALCOMM's base station modem business.
We should not lose sight of the fact that QUALCOMM's huge patent portfolio, extending well beyond CDMA technology, virtually ensures that no matter what kind of wireless communication is employed by a service provider in virtually any part of the world, at least some QUALCOMM IP will be essential. The various manufacturers and service providers will eventually work out licensing and royalty fees that are mutually advantageous. But the one constant in this whole scenario is that QCOM will continue to collect revenue in one form or another for a good many years.
Art |
