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

QCOM 174.19

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To: JustLearning who wrote (61159)	3/19/2007 5:39:55 PM
From: slacker711	Read Replies (2) of 197013

Does "will still be licensed" mean no royalties owed for using the "early patents" in handsets past April 2007? I hope this is not the case. I have the same interpretation as Eric. Nokia will be "paid up" for the early CDMA patents and can use those patents without paying license fees. I assume the first license agreement was written that way since some of those patents are still enforceable. If this was written into the second contract, it was a giant mistake on Q's part. If you are looking for an out, you might be able to find some ambiguity in the fact that Altman says that "some products" will remained licensed. It is possible he is just talking about infrastructure. Personally, I highly doubt that since it would have been in Q's benefit to be more explicit and the fact that nobody has ever talked about the infrastructure license. My assumption is either that it doesnt expire or that Nokia has never paid royalties on infrastructure so it doesnt matter anyway. qualcomm.com QUESTION FROM EHUD GELBLUM (JP MORGAN) When the comment was made about the expiration of the contract, I just want to understand why it expires “in part.” STEVE ALTMAN, PRESIDENT, QUALCOMM As far as "in part." The agreement is complicated. And I've got to be a little careful about how much detail I can go into. Basically, if you recall, how some patents are licensed and then there are “capture” periods and so forth. Nokia would remain licensed under very early patents. So it's not that all of the entire agreement expires. Some of their products would remain licensed under some of the earlier patents. That's why we say it expires “in part.” Just certain, very early patents, remain licensed. The rest of the patents, the vast majority of our patents, would not be licensed. And those would expire.

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