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

To: JeffreyHF who wrote (75869)	3/27/2008 11:01:00 AM
From: Stock Farmer	Read Replies (1) \| Respond to of 197226

So you're saying that Qualcomm offered Zyray a royalty-free cross license, like they ultimately did for BRCM+Zyray? No, absolutely not. BRCM's portfolio was afforded greater value after Zyray than was Zyray's alone. Yes... but first it was valued at zero. You skipped a step. You ask me to cite references, apparently you did not read them. I will quote for your convenience. During initial licensing skirmishes, Qualcomm had offered to Broadcom a fully paid-up, non-exhaustive license for Qualcomm's IS-95 (2G cdmaOne) and CDMA 3G technology (including cdma2000 and WCDMA) for a one-time fee of $25 million and no additional royalties. which Broadcom declined. Broadcom counter-proposed that "parties enter into a broad royalty-free exhaustive cross-license encompassing both CDMA and non-CDMA technology.". Qualcomm declined. Then, in June 2004, Broadcom acquired Zyray Wireless Inc. ... signalled Broadcom's commitment to WCDMA technology." "After the Zyray acquisition was announced, Qualcomm approached Broadcom to revive negotiations. In September 2004 Qualcomm offered Broadcom rates and terms that were substantially similar to rates and terms that Qualcomm had offered Zyray before the acquisition, and that Qualcomm was offering to other chipset suppliers at that time. Paragraphs 62 & 63 go on to describe these terms, and that the offer was the same as other companies had accepted. In other words, despite having been informed by Broadcom, prior to the Zyray purchase, that Broadcom valued their intellectual property at least equal to Qualcomm's (from a who pays what to whom standpoint), Qualcomm then went on to offer the same offer it had given a startup, and two other (likely equivalently portfolio imbalanced) licensees. In tendering such an offer, Qualcomm valued Broadcom's IPR as being of negligible value, AFTER having been informed otherwise. It wasn't until 18 months after Broadcomm commenced litigation for patent infringement in May '05 that Qualcomm made its November 2006 offer of "non-exhaustive royalty free cross covenants not to assert on semiconductor patents." or the April 2007 settlement offer of $100M payment by Qualcomm for mutual non-exhaustive cross covenants not to assert and certain additional exhaustive rights to Broadcom."...