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

To: Q8tfreebe who wrote (62456)	4/12/2007 11:55:19 AM
From: JGoren	Read Replies (1) \| Respond to of 196959

Royalty percentages can be manipulated for PR effect. Is NOK's calculation based on total dollars or did they calculate only using percentages. How many patents are included in the licensing deals because NOK concedes that as the number of patents rises, so does the royalty rate. For example, if NOK has a hundred licensing deals for one patent at 1%, 200 licenses for 2 patents at 2% and a license with Qcom for hundreds of patents at 4.5%, you end up with less than 3% because there are so many at 1% and 2%. In dollar terms, it could be higher, because some patents may only be referable to certain products in the wcdma world. My only point is the way you do your calculations can skew the number you report; the number NOK reports is dependent on how the calculation is done and whether the licensing deals are comparable based on other reasons. Plus, talking about aggregate, gross and only calculating on royalties received allows for other "manipulation" to make the number look favorable to NOK's argument. I guess what I am trying to say is that one can't take NOK's number at face value. The number can be "accurate" (depending on the method of calculation) but very misleading.