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

To: JGoren who wrote (72741)	12/28/2007 3:09:52 PM
From: JGoren	Respond to of 196650

The APLA license provides that if a chip maker sells to handset maker without a SULA license (use license to manufacture and sell completed handsets), Qcom has the right to terminate the chip makers' license if the use would infringe on Qcom patents. The problem here is that termination might be its only remedy and still might require a patent infringement suit against Nokia. In other words, back in the same soup, but neither would have a license. Quoting from the brief: "As previously mentioned, producers of chips that are licensed through APLAs are granted, inter alia, a license to sell such chips only to handset makers that have entered into a SULA with Qualcomm. The standard terms of the SULAs have granted handset makers a nontransferable, worldwide, nonexclusive, unrestricted license to Qualcomm’s patents to make (and have made), import and use handsets, and to sell (and offer to sell) completed handsets. SULAs typically provide for an up-front licensing fee to be paid to Qualcomm, along with a running royalty (paid quarterly) that is set as a percentage of the Net Selling Price of the handsets sold. The broad license typically provided in Qualcomm’s SULAs exhausts Qualcomm’s patent rights when handset makers sell finished handsets to their customers—typically wireless carriers such as Verizon Wireless—and pay Qualcomm the royalties due under the SULA. Qualcomm has not sought to license its patents to or receive royalties from wireless carriers or end users." (emphasis added)