Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DanD who wrote (62092)	4/5/2007 4:44:10 PM
From: jackmore	Respond to of 197443

Let them sell fewer phones.

To: DanD who wrote (62092)	4/5/2007 4:49:01 PM
From: JohnG	Respond to of 197443

A QCOM strategy seems to be forming here: 1) Use of patents for WCDMA/CDMA (incl WCDMA + GSM/GPRS) covered under old license + renewal-- Arbitration demand 3) Patents for GSM/GPRS alone -- lawsuits in US and elsewhere So, NOK agrees that it should owe QCOM royalties (for WCDMA/CDMA combined with GSM/GPRS) above and beyond anything QCOM may owe NOK for use of NOK's patents. Also, implicitly, NOK has accepted the general form of the current agreement as a model for renewal (and that current form does not cover use of QCOM's patents for GSM/GPRS). Thus, knowing that an agreement must and will be reached in which NOK is a net payor to QCOM, it seems that QCOM's use of any NOK patents for WCDMA/CDMA combined with GSM/GPRS should not be actionable in the interim period during which the final agreement is being reached -- i.e., what court would waste its time on such actions knowing that an overall agreement must be reached ( i.e. that it is unthinkable that some court will shut down cell phone production and importation). We could see the two branches of the dispute settled by separate means. Arbitration would determine the amount the net payor (NOK)owes QCOM to renew the license in he WCDMA/CDMA (incl combinations with GSM/GPRS) phone area by perhaps 6 months from now. The lawsuits in this relm should be delayed while such settlement is being arbitrated. In a second branch, NOK's theft of old and new QCOM IP to use in pure GSM/GPRS phones would be litigated, possibly forcing NOK to sign a second agreement covering this area alone. QCOM is not at risk of suits here because it produces no pure GSM/GPRS phones. Possibly NOK stepped in deep manure by 1) tacitly accepting the form of the old license and 2) agreeing that it was a net payor to QCOM under the old license. Possibly QCOM can now cleanly separate the WCDMA/CDMA license from the pure GSM/GPRS license in its legal process. Somehow, QCOM seems to want to push NOK to terminate or reshape the current license and generate a completely new license. Possibly the complexities of the current license lead to continual disagreements.