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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 137.31+0.7%3:59 PM EST

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To: David E. Taylor who wrote (81160)10/17/2008 3:45:06 PM
From: ggamer1 Recommendation  Read Replies (1) of 197624
 
It does sound from the last sentence you quoted from Simonson that NOK was setting aside ("providing for") at a higher royalty rate than they ultimately settled for.

One thing to remember is that NOK formula might have looked like this before the settlement:

Total Bill = past royalties due + one a pre-paid license fee going forward

The settlement formula was perhaps as follows:

Total Bill = past royalties due + one a pre-paid license fee going forward - Patent Sales to QCOM - Long Term (15 Year) contract (no legal fees) - 4G royalties in the future - Possible ASIC contract - Possible joint ventures - Dollar hedging - GSM royalties from QCOM - etc.

Perhaps the final value was lower than they had originally planned for/accrued but I am sure outside of dollar term all the other term also have cost and benefit associated with it.
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