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


To: Stock Farmer who wrote (75877)3/27/2008 11:08:18 AM
From: bronx  Read Replies (1) | Respond to of 197244
 
My understanding is that the '01 agreement included Q's use of GSM patents, so that's not changed.

So, some Q patents have expired, will expire, or will be fully paid up --- that's different from '01, but everyone else whose licence runs to 2017 or whenever has that expiration built into their licence too. As has been pointed out on this thread, only NOK, because it is negotiating now instead of 2 years from now, thinks it deserves a discount.

By the way, as Slacker has suggested and I agree, even if NOK and QCOM were offset in terms of their current patents (5% to NOK on each Q chip; 5% to Q on each NOK phone), NOK still owes a lot. Q's IP enables NOK to sell phones; NOK's enables Q to make chips. Completely fair, reasonable and non-discriminatory.



To: Stock Farmer who wrote (75877)3/27/2008 11:57:39 AM
From: Qgent  Read Replies (1) | Respond to of 197244
 
Excuse me for jumping in, but if I could just add a little to this most interesting discussion.

The crux of your argument is:

"Nokia now holds a fully paid up license to technology that was CRITICAL".

What you should have said was that, Nokia allegedly holds a paid up license that was critical. Nokia knows Qualcomm will argue otherwise.

Page 51 Section 164 of Nokia's complaint:

Nokia has a reasonable belief that Qualcomm will seek to deny the fact that Nokia's (blank)license under Qualcomm's (blank) Patents is paid up only (Redacted) if Nokia exercises one of the options.

In addition, Page 51 Section 165:

Nokia has a reasonable belief that Qualcomm will assert that because Nokia Alledgedly breached the 2001 SULA, Nokia's license under(blank)patents is not paid up(Redacted)and Royalty free.

It did not hold this fully paid up license before.

And it has yet to be decided if they legally hold one now.

Qualcomm desires to make chipsets that work in GSM, and has no significant GSM IPR. Qualcomm was not interested in this market before.

Not interested? I beg to differ. If Qualcomm was un-interested as you say, then why did they negotiate to have access to Nokia's GSM patents and have it included in the 1992 SULA?

Page 28 Section 91 of Nokia's complaint:

In the 1992 SULA,Nokia did not seek or obtain meaningful value for its own patents - even though it held a significant portfolio of wireless technology patents essential to GSM standard - because at the time Qualcomm was only marketing products compliant with its own CAI/CDMAone system.

That is a really lame argument on why they gave away their family jewels. Nokia had to know Qualcomm was going to enter multi/mode chipsets and the only reason Qcom hadn't yet was for the lack of a license from Nokia.

And of course, both parties have added to their IPR portfolios

I wonder then why Nokia renewed the license in 2001 that included even more of the GSM family jewels?

In other words, assuming the '01 offer was FRAND (which we can assert by the parties hard-bargained agreement),then unless a licensing offer by Qualcomm to Nokia is discounted from the '01 offer by enough to offset the intervening increase in Nokia's market position value (as observed in '01) of Nokia's fully paid up license to IS-95 and other patents,

There you go again, "Allegedly" paid up.

AND the value of Qualcomm's access to the GSM market, which Qualcomm did not then need, then such offer might reasonably be deemed as "not FRAND".

Qualcomm "did need it" and "twice" [1992 SULA & 2001 SULA] they successfully negotiated a license which included Nokia's GSM family jewels.

Nokia can't rewrite history.

Qgent