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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 155.15+0.7%12:21 PM EST
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To: limtex who wrote (61833)4/2/2007 3:06:19 PM
From: Art Bechhoefer  Read Replies (2) of 197300
 
This game has always been about whether either side could get an injuction.

Limtex, I don't believe that an injunction is the central issue here because that remedy generally is avoided by courts if other, less drastic remedies are available. The central issue remains the protection of intellectual property under the patent systems that prevail in various countries--for all parties, not just Nokia or BRCM.

Nokia may have reason to believe it would prevail in Europe, but the information that I have (as mentioned a couple of weeks ago) suggests that even the EC would frown on Nokia's claims. As to how to resolve the apparent stalemate, one can only conjecture. But I doubt that Nokia likes the idea of intentionally infringing QCOM patents (irrespective of an injunction), simply because of the potential treble damages that QCOM would receive if a jury verdict in the U.S. went in favor of QCOM.

I also believe that BRCM, given its recklessness in backdating options, would not get much encouragement from its board of directors to enter the market for wireless chips without first obtaining a license from QCOM.

Tactically speaking, QCOM needs to remain steadfast (I avoid using the term "stay the course") in resisting offers that would compromise its patent rights.

Art
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