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

To: Rich Bloem who wrote (61852)	4/2/2007 5:10:55 PM
From: Eric L	Respond to of 197306

The Nokia 'Net Payer' Comments Rich, << Actually, what NOK said was just the opposite. They said they are a net payor of Royalties and will continue to be. They just want to reduce the balance of payments a little more in their favor. The above is paraphrased. I have the qoute somewhere on my computer and if I was a little more organized and had a little more time, I would dig it out. >> The original comment on that was made by Jorma Ollila at a Bear Stearns conference in June 2005. The original text is probably forever lost. It took meany including me by surprise because the previous year they had hinted they'd finally become net positive for IPR royalty flow and several analysts added some estimated $$$ specifics (real or conjectured). Eleven months later Jorma commented again ... When we look at those agreements in total, the case was in summer of 2005, and is the case today that we are a net payer. I also said that when we look at the existing payment obligations that will expire within the next two years, counting from July of last year, and obviously making much of that reference was to the April 9, 2007; we believed last year, we believe even stronger today that our negotiation position will be stronger than it has been in the past. More here ... Message 22421473 Rick Simonson also talked about being a net payer a few earnings CC's later, the 1st time Nokia addressed IPR litigation at any length ... Finally, as you know, Nokia is a net payer of royalties due to the magnitude of our product business. Our negotiation position has become much stronger as we have seen a major increase in our patent portfolio over the last several years. As our current payment obligations expire, we believe our portfolio will give us competitive advantage when renegotiating some of the existing contracts although we will continue to be a net payer for the foreseeable future ... Message 22995665 - Eric -

To: Rich Bloem who wrote (61852)	4/2/2007 5:35:13 PM
From: Eric L	Read Replies (2) \| Respond to of 197306

Jorma's original 'Net Payer' Statement: Found, Not Lost ... Rich, I can't find the post itself but in my archives I did find the text that I said was lost forever ... This is from a mid-2005 post I composed to somebody and posted somewhere ... >>>> ... I'm not sure how closely you follow Nokia but earlier this month their US based CFO, Rick Simonson, presented the following slide at Lehman Brothers 2005 Wireless and Wireline Conference and the final bullet caught my eye ... Winners Need to Master ... · • Scale • Cost Structure • Quality – especially in low-end • Brand • Manufacturing and Logistic Challenges • Great and Broad Product Portfolio • Technology • IPR In Q&A, Rick responded to a question on the general IP matter and his response was very interesting. Although I can't recall the exact words, essentially he stated that Nokia was working through the process of determining to what degree they would use their IP portfolio offensively and to what degree they would use it defensively. Unfortunately the link to that presentation on the Nokia IR page doesn't work so I don't have a transcription of his comments and didn't note specifics when he presented ... One week later at the Bear Stearns Technology Conference Jorma presented and I darned near fell off my chair while listening. In response to a question from Wojtek Uzdelewicz around the 41 minute mark, Ollila stated ... We have good IPR in GSM, excellent IPR in WCDMA, and we are not so strong in CDMA so if you look at today's situation, today we are a net payer of licensing fees. When we are moving forward, two things will happen. First of all there will be dramatic enhancements to WCDMA and our position there being strong will mean that while while the 2nd thing takes effect, i.e. there will be renegotiation of our position with some major players in the industry and we feel that we will be in a significantly enhanced position in terms of our overall status with IPR vis a vis the rest of the field so we feel that this work that we have done in the last five years building our IPR position has really given us significant benefit which will materialize going forward, and I feel good about this. ... We hope this will be [sorted out] reasonably soon, and I hope it will. ### Best, - Eric -