Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 182.19

+3.5%

Dec 10 3:59 PM EST

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To: barty who wrote (143258)	7/5/2006 7:58:13 AM
From: slacker711	Read Replies (2) of 152472

Can you explain to me why Nokia cannot make a provision on the balance sheet for what they think is a reasonable royalty rate, continue shipping 3G devices and leave it for the courts to decide what is FRAND. Injunctions are very hard to get these days. Qualcomm has made it clear that a prelimanary injunction will be almost impossible to get. OTOH, I fully expect Qualcomm to go before the ITC on April 8th and file suit on a wide range of WCDMA patents (equally true for Nokia). The ITC case takes about a year to go through its deliberations and I see zero chance that Nokia (or Qualcomm) will escape without an injunction against WCDMA products being imported into the US. In addition to that, the first ruling on the GSM patent case before the ITC should come sometime next summer. I have no idea which way the court would rule in this case, but an injunction against imports is literally their only remedy tool. The clock on the wider GSM case against Nokia will be at 15 months and counting next April and probably also conclude within a year to eighteen months. You are right that it will take more like 24-30 months to get resolutions on new court cases, but the US market could quickly become a giant black hole for Nokia. Just for an example of the effect....when T-Mobile starts handing out their AWS WCDMA infrastructure contracts, do you think they will take a risk with Nokia that an injunction takes place? I'm not downplaying the risks to Qualcomm. Nokia will likely sue over CDMA2000 patents as well....however, the market seems to see the leverage in this situation as a one way street. The injunctions will start slowly, but starting next summer, the risks to Nokia are going to be substantial. All of this assumes that Qualcomm doesnt figure out way to accomplish a Spinco....that might allow for an increase in WDMA rates while still leaving Nokia at risk for GSM royalties. Slacker

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