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

QCOM 175.25

+0.6%

Dec 19 9:30 AM EST

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To: matherandlowell who wrote (61146)	3/19/2007 2:52:57 PM
From: carranza2	Read Replies (1) of 197011

What's in it for BRCM? How about future business with NOK? I always thought that NOK was not very prudent in essentially single-sourcing its chips. But I see Q as a much more credible second source to NOK than any other supplier. Certainly much more credible than unlicensed BRCM. Can you imagine a carrier buying unlicensed NOK handsets which contain unlicensed BRCM chips? It would have to be insane to do so. I have never thought that BRCM is spending tons of money except to do whatever is in its best interests. While its interests and those of NOK may coincide in some respects, I doubt that there is any out and out collusion. Broadcon's best interests require a license from Q, which Q can [probably] refuse within the confines of FRAND so long as the two are in litigation and the terms of a settlement of the various lawsuits is not agreed upon. The ITC litigation may cost Q some cash for past infringement, but I doubt seriously that the exclusion remedies BRCM seeks will be upheld. Plus, Q can/has invent[ed] a work-around the pertinent BRCM power control patent. In the unlikely event no work-around is possible, it can import blank chips and program them here, avoiding any possible exclusion, an exclusion which isn't likely to happen in the first place. If Judge Rudi rules in favor of Q on the inequitable conduct issue, which I think is more likely than not, then BRCM is going to be up the proverbial creek without a paddle. And the more it fiddles around with litigation, the less likely its potential customers are going to be willing to buy from it. Time works in Q's favor in this case. Nokia is in a similar fix. I doubt that a deal will be settled on between Q and NOK by April. But it is going to be very interesting to see NOK claim that its IPR is being infringed by anyone after 4/09/07 when it becomes a major infringer itself. It will be politically deadly anywhere except perhaps in Europe, and possibly there too, who knows. It is damned hard to figure out how this imbroglio is going to ultimately shake out. From where I sit, it looks like Q has the upper hand all around.

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