Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: bronx who wrote (75643)	3/20/2008 3:34:44 PM
From: Stock Farmer	Read Replies (2) \| Respond to of 197227

There is no reason why the sum of a few parts should not add up to more than the single licence yes, "volume discounts" are "reasonable". They are not, however, non-discriminatory. QCOM may be avoiding this because it is, as you note, costly to parse and dice Yes. And because once they single out what they believe are the key handful of "really important patents", they draw the bullseye for any number of invalidity defenses. Qualcomm can charge more for the aggregate because there is greater uncertainty that a killer lurks within. Also think about it. Let's pretend half of their IPR is for left handed chipsets and other half of their IPR is for right handed chipsets. They can charge 6% of phone price for all makers of phones when they have a "buy one, buy all" strategy. But what if they are obliged to license their IP to the maker of left handed phones? The maker can claim that they refuse to pay for the amounts ordinarily charged for right handed phones, and demand that these be subtracted in arriving at a "FRAND" price for the left handed license. This is not unreasonable. The problem arises when a future maker of right handed phones steps to the plate and asks for the previously computed value of left handed license to be discounted for their right handed license. And then the folks who make shoe-phones show up and the whole thing gets really complicated ;o)