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

To: Harvey Rosenkrantz who wrote (59050)	1/25/2007 12:52:10 PM
From: Jim Mullens	Read Replies (1) \| Respond to of 197351

Harvey, Re: Q1FY07 Altman statement re: option to extend NOK license, and>> “It is clear that one option they have is to extend the existing contract. This implies to me a continuing royalty stream under the same conditions as the existing contract.” Good catch. “...Nokia agreed to pay royalties on WCDMA at the same rate as they pay CDMA2000. They also insisted upon and received an option to extend that 2001 agreement beyond 2007. If Nokia does not exercise its options by the April deadline,...” This appears to be a different interpretation than that we’ve been provided before. If I’m reading this correctly, NOK must exercise the option to extend by the April deadline. If not, then that option expires and NOK is without a license and violating the Q’s IPR if it continues to mfg / sell any CDMA/WCDMA device. My prior understanding was that there was not a drop dead date to exercise the option, and therefore NOK was technically under license until 2008 ye at the same terms as those in the 2001 license agreement. IOWs, NOK could sign a new Q license at any time up to 2008 ye at the same terms as the 2001 license. Hmmm????

To: Harvey Rosenkrantz who wrote (59050)	1/25/2007 1:43:41 PM
From: rkral	Read Replies (2) \| Respond to of 197351

>>>"If Nokia does not exercise its options by the April deadline, then we will have ..."<<< -- Steve Altman, F2007Q1 earnings CC Mr. Altman's statement is a bit ambiguous. But since he did not explicitly say that the 'option to extend' expired April 2007, I think it's best to believe the earlier disclosure, which was clearly less ambiguous. Specifically, the license agreement expires April 9, 2007 but the option -- to extend the present agreement with the same terms -- expires year-end 2008. I don't recall anyone coming up with a plausible explanation of why Qualcomm might have agreed to such an option. I certainly don't have one.