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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 (76769)	5/1/2008 9:40:11 AM
From: slacker711	Read Replies (1) \| Respond to of 196568

We really need to see the determination of this first dispute. That will bound future eventualities. IMO, the best outcome here for Q shareholders would be a royalty bearing license, even in the low %ages now. However, it would not be bad, ultimately, if a high percentage royalty agreement was ultimately negotiated... except that folks might have to be extremely patient to get there and hold through a dampening effect on share price appreciation. This is going to get boring if we keep agreeing <g>. The only difference is that I would probably emphasize the risks to Nokia a bit more than you do....and thus the possibility of a deal. Assuming that the Strine decision is basically a draw, would Nokia turn down a deal with Q that gave a 2.5-3% royalty rate and forgiveness for the 7 quarters (April '07 through Dec '08) of missed royalty payments? How much more could they possibly get? It isnt like a zero rate is even remotely on the radar and such a deal would avoid hundreds of millions in trial costs, the possibility of injunctions, and the possibility of a higher rate. Of course, I have no idea if Q will make such an offer (and I have a feeling that this board would go ballistic if they did <g>), but I still see such a deal as in the best interests of all involved. The key for Q is getting at least a draw out of the Strine case, which isnt a slam dunk considering the performance of their lawyers, and running out the clock towards the expiration of the option. Only when the risks are distributed more evenly will we have any possibility of a deal. Slacker