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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 159.42-1.2%Jan 16 9:30 AM EST

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To: peterk who wrote (62059)4/5/2007 2:09:50 PM
From: Stan  Read Replies (3) of 197246
 
OK, the arbitration request is Q's response. It was made very quickly, so I suspect that it was going to be filed even before Nokia made its tender offer. Assuming no court delays, by way of a refusal to arbitrate which would require a court order to force arbitration, arbitration usually takes about six months. The time is spent picking an arbitrator, getting a date for a hearing, the filing of briefs etc. It is a much faster process than going to court, but is not accomplished over night. Unless the Parties can agree on an expedited hearing and decision, it can drag out. Also of note is the fact that arbitration is a contractual matter. So several points must be made. First, does the royalty agreement contain an arbitration clause in it; and even if it does, does the requirement to arbitrate extend beyond the expiration of the agreement itself. If the answer to the first question is no, Nokia would have to agree to arbitrate, and this is doubtful. If the answer to the first question is yes, has Q protected its right to arbitrate by filing with the AAA prior to the expiration of the royaly agreement? The courts have ruled that some issues can be arbitrated after the expiration of a contract, but clearly not all issues, since there is no basic document in existence upon which to make a ruling. The beat goes on!
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