Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 155.82

-1.3%

Jan 23 3:59 PM EST

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To: pheilman_ who wrote (144437)	8/22/2006 10:05:11 PM
From: matherandlowell	Read Replies (2) of 152472

"Did Qualcomm restrict the patents to only apply to CDMA systems?" The answer to this question is an unequivocal yes. We have been having the same discussion for many weeks/months. Some members reading this board (with greater knowledge of QCOM IP than I have) might say years. QCOM licensed their IP only for use in CDMA/WCDMA standards. That's the reason that QCOM is suing Nokia for use of QCOM IP in the GSM/EDGE/WEDGE/etc. handsets. Nokia is using the IP without the benefit of a license from QCOM. The only controversial point remaining is whether Nokia was obligated to pay for the use of QCOM patents. While it might seem to be obvious that a patent is by definition a public document and that using the patent can only be done with the permission of the holder, the argument has been raised by some very knowledgeable members of the (SI)board that QCOM's membership with a European organization might have released Nokia from needing to pay royalties. This has been refuted by quoting from the bylaws of the organization which specify that only companies participating in the standard are obligated to report the patents which are contributing. Because QCOM was not participating in the standard, they may have had no obligation to disclose their IP because they were unaware that the IP was being used in the standard. In addition, they had already disclosed the IP to the same organization because of their involvement in the CDMA/WCDMA standards. There can be no doubt that Nokia was aware that the IP which they were using without permission was protected by legally obtained patents. Thus, the Nokia crisis is essentially over. There will be a little whining, maybe the occasional scream, but the Q has Nokia in a very delicate position. The question of whether BRCM will be able to successfully extort money or negotiate reduced royalty rates remains open. j.

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