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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 159.42-1.2%Jan 16 3:59 PM EST

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To: peterk who wrote (149230)4/5/2007 2:41:54 PM
From: JGoren  Read Replies (2) of 152472
 
I can't remember; has Qcom ever used the terms "paid up" to describe the license on the cdma early patents? I have always interpreted NOK's use of those words as: "we don't owe any quarterly royalty from April 9, 2007 through December 31, 2008" so they are effectively paid up, but we have the right to continue to use those patents." I always thought that if the original patents haven't expired by "end of 2008", NOK has to re-up somehow at that time.

The arbitration request addresses the issue of what the option means and what the parties contemplated when it was signed. Also, is there one license agreement or more than one? If there is only one with separate provisions about various patents and what they can be used for, Qcom may be on firm ground that NOK cannot separate and pay separately for some and not all. One other problem with NOK's tender of payment is that licenses have lots of other terms in them than the royalty rate. For example, in order to prevent exhaustion there are restrictions on how the can be used and reservations of rights so, for example, the handset makere pays a separate royalty when it sells the handset. NOK is taking the position, it can just pay something and not abide by written restricitons that would have been in the license agreement.
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