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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 171.54+0.4%3:59 PM EST

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To: JGoren who wrote (76732)4/30/2008 10:36:02 AM
From: Art Bechhoefer  Read Replies (2) of 196578
 
Thanks for bringing us the NOMURA report. It summarizes many key issues between NOK and QCOM.

One question that I had while reading the report was on the distinction between essential and implementation patents. Was, or is there any distinction made in the licensing agreement itself? If not, then I don't see why this distinction would be important, notwithstanding the NOK assertions that all or most of the essential patents are already exhausted or paid for.

As to the bundling issue, I think the argument set forth by NOMURA is more straw man than anything else. Unless a licensee can show the need for only one or two patents, and none other than those one or two, it would be hard for the licensee to argue that QCOM stiffed him. Getting access to some 6000 patents, and more as they are approved, for a rate less than the going royalty rate would seem to destroy any claims concerning unfair business practices, FRAND or whatever they may be termed.

In my mind, the parallel situation is seen in the control of most of the AM radio patents by RCA during a period between the 1920's and 1940's. That is, there is a long history of firms doing exactly what QCOM has been doing, and doing it in full accord with the law.

Art
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