Annoying, silly, negotiating idea: <"I don't think Nokia is out to break Qualcomm's business model. I think they have a number in mind in terms of what they want to see as a royalty rate," he added. "For both sides to come together, both are going to have to capitulate a bit." >
No, they could come together by Nokia simply agreeing to the standard, cheap, royalty rate. There is no reason that QCOM needs to give Nokia a discount. On the contrary.
The idea that everybody needs to give a little in negotiation is widespread, but wrong. Sometimes there's a share bargaining situation and some give and take is necessary to find a reasonable position. But sometimes, the price offered is the right market price and that's all there is to it.
If Nokia doesn't want to buy, they can go back to making gumboots. Good riddance. QCOM can buy Nokia after their share price crash [QCOM wouldn't crash so much as loss of business for QCOM in stopping using Nokia patents is not such a big issue for QCOM as Nokia stopping using QCOM patents]. Then, owning Nokia, and all the patents, QCOM can get back to work, fire all the lawyers, sell off the handset divisions, keep all the patents and engineers.
QCOM should now short $20 bn in Nokia stock, then cancel all the meetings to negotiate royalties. Post Nokia a contract to sign for FRANDly use of QCOM property. Wait for the deadlines to roll around and courts to find Nokia has got absolutely filthy hands [if they continue their plan to use QCOM property without paying]. Then buy Nokia.
Go nuclear. Go MAD [as in Mutual Assured Destruction - in which Nokia would be obliterated and QCOM would get a flesh wound]
Mqurice |
