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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 155.82-1.3%Jan 23 9:30 AM EST

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To: Harvey Rosenkrantz who wrote (59050)1/25/2007 12:52:10 PM
From: Jim Mullens  Read Replies (1) of 197356
 
Harvey, Re: Q1FY07 Altman statement re: option to extend NOK license, and>>

“It is clear that one option they have is to extend the existing contract. This implies to me a continuing royalty stream under the same conditions as the existing contract.”

Good catch.

“...Nokia agreed to pay royalties on WCDMA at the same rate as they pay CDMA2000. They also insisted upon and received an option to extend that 2001 agreement beyond 2007. If Nokia does not exercise its options by the April deadline,...”

This appears to be a different interpretation than that we’ve been provided before.

If I’m reading this correctly, NOK must exercise the option to extend **by** the April deadline. If not, then that option expires and NOK is without a license and violating the Q’s IPR if it continues to mfg / sell any CDMA/WCDMA device.

My prior understanding was that there was not a drop dead date to exercise the option, and therefore NOK was technically under license until 2008 ye at the same terms as those in the 2001 license agreement. IOWs, NOK could sign a new Q license at any time up to 2008 ye at the same terms as the 2001 license.

Hmmm????
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