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


To: golfinvestor who wrote (72967)1/2/2008 11:36:14 AM
From: JGoren  Read Replies (3) | Respond to of 196876
 
A court ruling is only enforceable in its own jurisdiction. BRCM could bring actions in other countries, but it seems to me that all it will get will be damages since by the time of hearing all fixes will be in place and Qcom won't be shipping chips into the pipeline. CC indicated that as to new customers they are already using the fixes. 317 patent likely will be voided by the PTO by that time. Qchat not relevant abroad. I would think, except for Broadcomm's litigiousness, it would be throwing good money after bad. There is another problem in that I would think to try to get an injunction, Broadcomm would have to sue the very handset makers it wants to do business with, since Qcom's foreign activities are likely small. Maybe Britain but can't think of another place where Qcom has facilities and personnel activities where it might be affected. Maybe on the EU continent to help Nokia. The amount of money would be small, I would think, because Qcom is not selling many chips over there. Comments appreciated of course.

I agree with posters: Broadcomm has probably used up its leverage, although it threatens more. At this point, it is overstepping. I think the rate for a Qcom license should now be 10%. Broadcomm may now have shot itself in the foot. Worse, Broadcomm cannot settle for 5 or 6 months if it wants to continue its patent exhaustion argument, because the Supreme Court is not likely to issue Quanta until May or June.



To: golfinvestor who wrote (72967)1/2/2008 12:10:15 PM
From: quartersawyer  Respond to of 196876
 
This means that the 10.5% royalties on the two patents are only applicable to any chip imported into the US

It's not a huge issue because of the workarounds and volumes, but the order remains unclear-- to us and to Qualcomm, according to the cc-- as to whether the offending products are handsets or just chipsets. But it is clear that it's a percentage of Q's revenues, so if it's handsets it's less than 0.5% of the wholesale price.