Qualcomm’s (QCOM) Pipe Dream

September 27, 2007 by Douglas A. McIntyre

Qualcomm (QCOM) wants things to go back to the way they used to be with its largest customer, Nokia (NOK). That was when the world’s largest handset company was paying Qualcomm’s then full-rate to license the US company’s technology. Qualcomm’s hopes are based on its view of its patents.

"They do not question the validity of our patents, that’s never been the issue, but they (NOK) don’t want to pay the same amount," Andrew Gilbert, head of Qualcomm’s European unit told Reuters. Mr. Gilbert and his co-workers may be the only people who believe both in the validity of the patents and the fairness of the fees charged for them.

Qualcomm’s patents and license fees being challenged by several companies including Nokia and Broadcom (BRCM). The ITC and federal courts both have judgments against the company.  So, the statement about "validity" is a sign of just how bizarre the company’s view of its position is.

Will Nokia sign with Qualcomm on its old commercial terms?

Not a chance.

Douglas A. McIntyre

Q

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here
you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.


Click here
to match with up to 3 financial pros who would be excited to help you make financial decisions.