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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 161.39

-1.9%

Jan 15 3:59 PM EST

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To: JGoren who wrote (61000)	3/16/2007 6:00:13 PM
From: Art Bechhoefer	Read Replies (1) of 197227

Re: Settlement issues. A careful reading of the article published by the AP indicates that a settlement is being discussed but has not actually occurred. I agree that it would be more logical if a settlement included withdrawal of the BRCM complaint before the ITC. Even if BRCM refuses to withdraw its claim, I doubt that the ITC would be favorable to banning imports of handsets or chips using the infringing patents because other remedies are available which would give BRCM the same benefits and would not harm service providers such as Verizon. It is my understanding that in patent cases, whether heard in a federal court or before the ITC, a total ban is rare if there are other less drastic remedies. I would also suggest that a major settlement between QCOM and BRCM would result in QCOM not taking action against BRCM for its infringing the video compression patents, in return for which BRCM would take no action against QCOM for using the BRCM power management design in its chips. It seems to me that QCOM has set forth several leverage points, which if pursued might adversely affect potential competitors such as BRCM. Yet since QCOM is narrowly focused on wireless equipment using CDMA and/or MediaFLO, it would not object to a company like BRCM using certain patents in areas that do not compete with QCOM's business interests. This would amount to a cross licensing of certain patents between the two companies, but would still allow the collection of royalties on these patents from other users. JMHO. Art

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