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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 172.29-2.2%3:59 PM EST
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To: ralphty who wrote (62970)4/22/2007 12:32:47 PM
From: Art Bechhoefer  Read Replies (1) of 196981
 
even if Qualcomm were awarded treble damages it would be pocket change to Nokia

Two points: The award would include not only infringing CDMA patents but any portion of those patent claims used with GSM/GPRS/EDGE equipment.

You may be correct that PREVIOUS infringements by Nokia may have been fairly insignificant, but remember that the motivation behind the present strategy taken by Nokia relates to the increasing demand for WCDMA. After all, it is now clear that GSM spectrum in Europe is too limited to accommodate total demand for wireless, especially that part aimed at data communications. Most of the growth of wireless in Europe and other wireless communities using GSM is going to occur by adding WCDMA to handsets. Every WCDMA based handset will probably have to use QCOM patents, at least for the next three or four years, until some of the basic patents have expired.

It's the royalties that Nokia will owe for WCDMA handsets that worries Nokia, and they are doing their best to minimize the inevitable (I repeat, inevitable) royalties they'll have to pay.

And $20 million up front won't cover the bill.

Furthermore, even if Nokia decides to push service providers away from WCDMA into WiMAX, they still encounter the same royalty problem with QCOM, since QCOM also has the major OFDM and related patents used with WiMAX. Checkmate Nokia.

Art
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