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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 174.78+0.1%3:59 PM EST

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To: JGoren who wrote (62045)4/5/2007 1:03:33 PM
From: carranza2  Read Replies (2) of 197032
 
Richard Windsor, an analyst at Japanese investment bank Nomura, said Nokia has pulled of a "strategic master stroke" by doing this.

Windsor said the deal signals how much Nokia is willing to pay Qualcomm for royalties and by doing so, Nokia significantly reduces the risk of being found guilty of "willful infringement" in any patent lawsuits that follow with the San Diego-based chipset maker.


Strategic master stroke, my a**.

I'd be willing to bet that it has offered significantly more than $20 million per quarter in the negotiations.

And considering that $20 million is a paltry sum in the relative sense of things, I am willing to bet that it does not immunize NOK from a willful infringement claim. Otherwise, paying a pittance on IPR, then using it without a license will become a tactic every infringer will adopt. There is no way that the courts will allow a voluntary payment of $1 for IPR rights worth $100 in order to get immunized from a willful infringement claim.

No one has focused on this, and the media should. I'm willing to bet that the vast majority of sophisticated IPR lawyers are having a good laugh over this tactic.

It was a nice try, though, and knocked some value off the share price. When the dust settles, the investment community is going to wonder about this cheesy move.

Thank you NOK, you stepped into it.
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