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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Art Bechhoefer who wrote (142777)	6/13/2006 3:48:40 PM
From: slacker711	Read Replies (1) \| Respond to of 152472

If Nokia thinks it can continue selling handsets that use QCOM patents, it would pay not only a lump sum, as you suggest, but might have to pay treble damages for intentionally infringing the patents. That outcome is highly unlikely. Nokia would never be dumb enough to go on selling QCOM IP without a license and without paying a royalty fee. According to Qualcomm, only the US has treble damages....and since only a small portion of Nokia's WCDMA shipments will be coming into the US, I doubt it will be that big a deal. I dont think that I have seen a transcript of the analyst day meeting in May, but they talked extensively about all of these issues. My general takeaway was that both companies would continue shipping and that it would take a while for the issues to work their way through the courts. Slacker

To: Art Bechhoefer who wrote (142777)	6/13/2006 4:17:24 PM
From: Dash of Reality	Respond to of 152472

I wonder how long it will take for value investors to clear up that distortion in the market. I don't know the answer to that but I hope your right. Nokia would never be dumb enough to go on selling QCOM IP without a license and without paying a royalty fee.<i/> I believe Nokia will continue to sell handsets using QC's IP without a license. Without an injunction there is nothing to stop them from doing so. However, I do agree that they will most likely continue to pay the royalties during this time period. As slacker stated there is no incentive to resolve the dispute. By paying they are not applying any pressure to QC, however by not paying anything that could be interpreted by the ITC as a blatant disregard for QC's IP. Nokia is not disputing the legitimacy of QC's IP, just the fairness of the royalty rate. I don't see any incentive for Nokia to resolve this dispute quickly. It is unlikely that Nokia will be required to pay a higher royalty even if the case is settled in court.