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

To: scratchmyback who wrote (61991)	4/5/2007 4:37:42 AM
From: JGoren	Respond to of 197029

Okay, here's the payment strategy. We're gonna make payments in an amount that we think is reasonable, so we aren't liable for intentional infringement. NOK is trying to create "facts on the ground", an old litigation technique. Moreover, it's intended to put Qcom in the position of infringing while NOK does not. Now let's see if Qcom rejects the payment as not founded upon an agreement. NOK puts Qcom in difficult position if it rejects the tender of payment. Remember, NOK's position is that FRAND prevents injunction, prevents damages, only allows damages in reasonable amount of royalty. Plus, it is responding to the latest PR release that indicates 5% is reasonable by saying it's paying less than 3% for UMTS IPR. Very clever. Will be interesting to see the Qcom response on Monday if the war room is not operating all night. "Nokia said it retains the right to ask Qualcomm and its customers to respect Nokia's patent lawsuits, and that Qualcomm's entire chipset business becomes exposed to Nokia's patent portfolios on April 9." This is not settlement strategy but an open threat to the handset makers and carriers. What NOK now risks is the cdma based carriers will simply boycott NOK handsets and tell NOK that "We don't need you."

To: scratchmyback who wrote (61991)	4/5/2007 4:43:14 AM
From: JGoren	Read Replies (2) \| Respond to of 197029

Nokia pays $20 million for UMTS patents to Qualcomm LONDON (MarketWatch) -- Nokia (NOK : NOK NOK took a tentative step toward settling its patent dispute with Qualcomm (QCOM), with Nokia paying $20 million for patent licenses covering the second quarter over UMTS licenses. "Nokia believes that Qualcomm's patent portfolio is concentrated in the United States, and that it has few or no alleged UMTS patents in many of the countries in which Nokia has substantial UMTS handset sales," the Finnish handset maker said. Nokia said it will make similar payments in the future. Nokia said it retains the right to ask Qualcomm and its customers to respect Nokia's patent lawsuits, and that Qualcomm's entire chipset business becomes exposed to Nokia's patent portfolios on April 9. marketwatch.com Interesting take that it's to move towards settlement. I don't buy that at all. It's more game playing.

To: scratchmyback who wrote (61991)	4/5/2007 8:12:59 AM
From: waitwatchwander	Read Replies (2) \| Respond to of 197029

Why pay now? Was this action necessary because effective Monday, existing payment arrangements no longer apply? Isn't the PR nothing more than yet another minimal cost tactic to delay what seems like inevitable resolution? Why is continuance of delay tactics deemed more important than focusing on more permanent resolution mechanisms?

To: scratchmyback who wrote (61991)	4/5/2007 8:29:22 AM
From: Qgent	Respond to of 197029

Nokia has until 2007 paid less than 3 per cent cumulative license fees under all of its patent license agreements involving WCDMA products. The way I'm reading this, is that Nokia is a net payer of 3 percent when they account for all of there license agreements with all parties not just with Qcom. This way they wouldn't technically be breaking the NDA. So if Qcom gets 4.5%, and a Nokia payment nets 3%, then Nokia is collecting 1.5% for their IPR with other players? This payment or offer, might be Nokia's back door to keeping the option to renew alive. ( I mean option to stall ) I need more coffee. Qgent

To: scratchmyback who wrote (61991)	4/5/2007 8:48:53 AM
From: slacker711	Read Replies (1) \| Respond to of 197029

"As we continue to negotiate the new cross-license agreement, Nokia views this payment as fair and reasonable compensation for the use of relevant Qualcomm essential patents in Nokia UMTS handsets during the second quarter of 2007. Nokia believes that Qualcomm's patent portfolio is concentrated in the United States, and that it has few or no alleged UMTS patents in many of the countries in which Nokia has substantial UMTS handset sales. When Qualcomm's early patents become paid-up and royalty-free on April 9, 2007 Qualcomm's share of all patents relevant to Nokia UMTS handsets will significantly decrease", said Rick Simonson, chief financial officer, Nokia. So, this $10 million dollar payment doesnt account for sales in countries where Qualcomm hasnt filed for patents. Does Q file for patents in a country like India? Malaysia? Nokia has until 2007 paid less than 3 per cent cumulative license fees under all of its patent license agreements involving WCDMA products. Hmmm....cumulative? I think it is going to be tough to extrapolate much from this number since this number likely represents both ingoing and outgoing royalties. This brings up an interesting question....does Qualcomm pay a unilateral return royalty? Slacker