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

To: GO*QCOM who wrote (62120)	4/6/2007 4:57:13 PM
From: DanD	Respond to of 197054

Qualcomm responded by filing a demand for arbitration with the American Arbitration Association to force Nokia to pay far higher royalty fees – estimated to be more than $125 million per quarter – that Nokia has been paying. Qualcomm said the contract calls for arbitration of disputes arising from the agreement. $125 million seems like a lot of money. But. Check my math again. $125 per quarter = $500 million a year. And that is a 3% royalty. $500,000,000 / 0.03 = $16,666,666,666 Let's not say 3% lets say 5% $500,000,000 / 0.05 = $10,000,000,000 Some of the $125 million is licenses and not royalties, but for $10-$17 billion of annual business $500 million doesn't really seem like so much. That's gratitude for ya. Dan D.