Their argument is based on proportionality of essential patents, and in renegotiating their contract with QUALCOMM, they are demanding that their essential IP be recognized, respected, and compensated for. In other words, they want a net down from any 'standard rate' or reciprocal royalty bearing licenses, for their essential IP used in CDMA, GSM/EDGE, WCDMA & HSPA, chip manufacture by QUALCOMM.
Care to speculate what Nokia is demanding? As far as I can tell, in their current agreements with Qualcomm, Nokia is not getting any value for their IP, so anything is better than ZERO. On the other hand, I doubt even Nokia thinks that they deserve a royalty-free cross-license, so somewhere between 0 and 5% would seem fair. Of course, there's the issue that revenue from Nokia's handsets is several orders of magnitude higher than QCT's revenue, so even if they paid each other 5% on their respective products, Qualcomm comes out far ahead. |
