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

To: ihavenoidea who wrote (75635)	3/20/2008 2:57:48 PM
From: DanD	Respond to of 197255

6% or $6?

To: ihavenoidea who wrote (75635)	3/20/2008 3:00:38 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 197255

I don't see these two disputes having a lot in common. On the one hand we have a portfolio licensing strategy and on the other hand we have a patent prosecution strategy. These are different. QCOM has no bargaining power against BRCM, because really QCOM can't manufacture a marketable chipset without BRCM IPR, but the converse is not true. NOK and Q have patent portfolios, plus it looks to me like NOK has a perpetual license to some pretty key technology, otherwise immediately on expiry Qualcomm would have pulled out these patents, I would think. They chose instead to trot out some GSM patents... and lost... 0% royalty rate for those. Also, and more important, BRCM prosecuted the patent, individually, against QCOM... and won... 6% royalty rate for that one... The Nokia/Qualcomm battle may indeed turn out to have Qualcomm attempt to assert one or more "non essential" patents against Nokia, in which case Nokia would defend vigorously, and if Q was successful, then you would see a large imbalance. If Q lost, that would be bad. I believe Nokia's stragegy is designed to force Qualcomm to either dish out a deep discount or draw big targets around a few of their key patents. High stakes poker, to the max.