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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: ohohyodafarted who wrote (59115)1/25/2007 11:16:29 PM
From: JGoren  Read Replies (2) of 197356
 
You are not correct.

It is clear that NOK has until the end of 2008 to exercise the option to renew the license on the original terms. Please re-read my explanation (linked below), which I believe to be correct and consistent with everything I remember that both Qcom and Nok have said publicly. I think the rationale expressed in the post will help you understand why there is a gap--NOK wanted an opportunity to go on its own but a lifeline to jump back on the Qtrain. At least that's what I think it was thinking in 2001 when the agreement was negotiated. For its part, Qcom probably thought the likelihood of NOK being able to go without a license was pretty small and even if NOK waited until 2008 to re-up, it would get the same rate and maybe save some renegotiation headaches. Qcom let NOK know that regardless of the difficulties between them, NOK could always re-up. Except for the depression of the stock price because of the uncertainties, there is not a lot of incentive for Qcom to reduce its royalties or make concessions to NOK, because at the end of the day, NOK either has to come to reasonable terms or re-up under the old terms.
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