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

To: whisperer who wrote (76840)	5/3/2008 10:15:37 AM
From: JeffreyHF	Read Replies (1) \| Respond to of 197214

Nokia is running the same delay game down on IDCC, and the same sort of moving target negotiations.Despite having more than 50% of the handset industry's profits, Nokia has chosen to stiff the American inventors,and litigate/lobby them into submission.They will reap what they've sown.Pigs get slaughtered.

To: whisperer who wrote (76840)	5/3/2008 2:21:02 PM
From: Stock Farmer	Read Replies (3) \| Respond to of 197214

Obviously, you and I are not going to settle the issue here, so we'll have to wait for the trial. Well, if Nokia and Qualcomm couldn't settle it in arbitration, or by motion in front of the ALJ the first time, unlikely we're going to figure it out with less data. The thread, absent yours truly, has been pretty quick to come to the opposite conclusion, and has figured out that of course Nokia's arguments are weak, unfounded, slimy and otherwise corrupt, because... well... that's the outcome we want. I'm not so quick to come to that conclusion. Of course, that's rubbin some fur the wrong way... Without the possibility of infringement (automatic ETSI license to all essential patents) NOK does not have much incentive to come to the table. Yes. Sad for Qualcomm, but sometimes the world doesn't go the way Qualcomm might like. However, just because a system works in ways we don't like, doesn't make the system wrong. We have to adapt. Qualcomm has to give Nokia some incentive to come to the table. Like offer them equal or better terms than they think they can get if the issue is decided in court. From what I've seen (check the Broadcom case), Qualcomm management tends to be willing to take the fight to the OK Corral if necessary. In that scenario, sometimes you win and walk away with it all, sometimes you go home in a box. It's pretty high stakes. But that's Qualcomm's management style. So you’re right, in such a scenario, the only way QCOM can get any royalty is to accept NOK’s terms. No, they do not have to accept NOK's terms. They can counter-propose alternative terms for "some patents" that are not as arguably not-FRAND as "all or none". They can go to arbitration, or appear in front of the ALJ. There are numerous choices. Most of which Qualcomm's management (or Qualcomm's shareholders) would rather that they don't take. All of them (except capitulate) take time. In the end we can all be assured that Qualcomm will receive just as much royalty revenue from Nokia that Qualcomm and Nokia end up agreeing is fair and just. And not one penny more or less. It may cost a fortune in legal bills, and their agreement may have to be forced by the ALJ, but if Nokia's behavior is found to be unreasonable, some or all of that will be repaid too. Plus interest. If Nokia's behavior is found (by the court, not us) to be reasonable, then Qualcomm will have to eat its own legal bills, or more. The point here is that Qualcomm has choice. The point is that it's not all Nokia's fault. It's not all Qualcomm's fault either. It appears to me that this is a legitimate dispute, and I would want these two parties to try to come to a settlement. If this whole thing goes into the courts, then a bunch of things are going to be decided that will make neither party happy. Qualcomm will likely have their "one price for all" business model torn to shreds and Nokia will likely end up having to pay an unbundled royalty rate, legal bills up the wazoo, and always be on guard against being ambushed by a vengeant Qualcomm... all it takes is one good patent. At least you and I can discuss this all rationally, and it provides some diversion from the day-in-day-out yada yada. While we wait, in some frustration, for the issue to be decided and the cap to come off the stock price.