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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Bux who wrote (2954)	9/9/2000 6:04:55 PM
From: A.L. Reagan	Respond to of 196812

why would Nokia need a license just to resell the handsets? There is a "fill in the blank" in terms of what further resale is permitted under Q's royalty agreements. A current, albeit redacted, royalty agreement can be found about 2/3rds through the following Neopoint filing: sec.gov There is an issue with OEM's involving Q's requirement that the royalty is based on the ultimate resale price. Otherwise there could be some shady transaction where an OEM sold to NOK at some dirt cheap price with the quid pro quo being some sort of other payment not related to the product sale. The royalty agreement prohibits sublicenses except to Affiliates, as defined. Here's some more boilerplate to chew on (formatting unavoidable): Subject to the terms and conditions of this Agreement, including but not limited to timely payment of the license fees and royalties set forth herein, QUALCOMM hereby grants to LICENSEE a personal, nontransferable and nonexclusive license (without the right to sublicense except as set forth in Section 5.4 below) under QUALCOMM's Intellectual Property solely for Wireless Applications to (a) make (and have made), anywhere in the world, Licensed Products and Components (provided such Components have been exclusively designed by or exclusively for LICENSEE and which design is owned and used exclusively by LICENSEE), (b) to import, use, offer for sale, and sell, lease or otherwise dispose of Licensed Products solely within the Territory, and (c) to import, use and sell, lease and otherwise dispose of Components solely within the Territory but if such Components incorporate QUALCOMM's Intellectual Property, then such Components may only be used, sold, leased or otherwise disposed of by LICENSEE if they are included as part of and within complete Licensed Products Sold by LICENSEE (or as replacement parts for Licensed Products previously sold by LICENSEE). No other, further or different license is hereby granted or implied. ------------------------------------------------------ Unfortunately for the curious, the exact definition of "Licensed Product" is redacted in the filing.

To: Bux who wrote (2954)	9/9/2000 6:57:34 PM
From: JohnG	Respond to of 196812

Bux. If NOK wants the software to give a typical NOK user interface, they may well need a license. I suspect the ASICs and software are both controlled by the license to assure quality, etc JohnG

To: Bux who wrote (2954)	9/9/2000 7:15:48 PM
From: cfoe	Read Replies (2) \| Respond to of 196812

Bux - I think if you read the license language provided by ALR in his post siliconinvestor.com it does infer (if not actually state) that NOK is prohibited from selling a 3G phone without a 3G license. Yes, Telson can sell a 3G phone to NOK because Telson has a 3G license. I asked one of QCOM's IR folks the following question when the Telson deal was announced: Can NOK use Telson to get around signing a 3G license with QCOM. The response was No! They said very clearly that NOK cannot sell a 3G phone unless they have a 3G license. If you remember, NOK has made comments that they think that they have sufficient rights already from QCOM to cover 3G. QCOM says no. Maybe there is a lawsuit in the future over this, but I doubt it. Just like NOK saying the Telson deal was for 2G product and now we find out it is for 1X. Maybe NOK wants to call 1X 2G or 2.5G or 2.9999G so they can avoid having to say they are buying 3G product. I will trust what QCOM says until proven otherwise.