JGoren, re: NOK option thru 2008, and “NOK has the option to renew at the same terms. That is one reason it figures that it has a no-lose strategy to delay, engage in massive litigation, etc. At any time before the end of 2008, NOK can say "King's X" and have the same deal it has now, while accruing royalty payments at the same rate for sales after April 9.”
As I see it, there are two separate NOK licenses on the table--
1) A renegotiation of the current license signed in 2001 which expires this April.
2) An option thru 2008 to extend the current license signed in 2001 at “the same terms” as in that license. Those terms no doubt refer to the same royalty rate, however I believe that option includes other provisions such as a long term / perpetual license period.
My read is that the terms that QCOM is proposing in the renegotiation of the current license (2001) may be, and probably is, substantially different than in the current license and may include-
+ A higher royalty rate
+ A royalty rate for GSM/GPRS/EDGE
+ Inclusion of a royalty free cross-license with 3rd party pass-thru rights to all of QCOM’s MSM partners.
+ Incorporation of OFDM, Mimo, UMB, etc
+ Provision for incentives with use of QCOM MSMs
+ ETC.
Further, by not having a signed license (either via 1, or 2) with the Q after April 9, NOK will be in violation of the Q’s IPR and subject to **Damages** in addition to paying royalties. |
