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Qualcomm to Pay Broadcom $891 Million to End Patent Dispute
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By Susan Decker and Ian King
http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=QCOM%3AUS&sid=a_LA.WjQcP24
April 27 (Bloomberg) -- Qualcomm Inc., the world’s biggest maker of mobile-phone chips, agreed to pay Broadcom Corp. $891 million in cash over four years to end a global dispute over handset-technology patents.
The companies will license each other’s patents and pledged not to sue each other again, according to a joint statement yesterday. The first payment, of $200 million, will be made by June 30. The deal doesn’t affect Qualcomm’s revenue model of licensing its technology to handset manufacturers and phone- service providers, the company said.
The agreement removes a threat hanging over Qualcomm, which had been forced to limit some of its phone-chip sales after losing a trial to Broadcom in May 2007. Qualcomm faced a hearing next month that could have resulted in further limitations. The Southern California-based chipmakers had been fighting in courts since 2005, after Broadcom, known for making television set-top boxes, began targeting the mobile-phone market.
“We were concerned about the possible disruption to our business and more importantly to our customers,” Qualcomm General Counsel Donald Rosenberg said in a telephone interview.
Broadcom accused its rival of infringing patents, which Qualcomm denied. Yesterday’s agreement protects Qualcomm’s mobile-phone customers from patent-infringement allegations made by Broadcom, and Broadcom’s customers in businesses other than handsets won’t have to worry about patent lawsuits from Qualcomm. Mobile-phone companies won’t be able to avoid making license payments to Qualcomm by becoming customers of Irvine, California-based Broadcom.
Business Freedom
“This gives each of us the freedom to act in our core businesses,” Rosenberg said.
Qualcomm had about $13.1 billion in cash and marketable securities at the end of last year. The company is scheduled to report second-quarter earnings today.
The settlement may save Qualcomm about $100 million in annual legal costs, and about $50 million for Broadcom, according to Mark McKechnie, a San Francisco-based analyst for Broadpoint Amtech Inc.
“The important thing, at least for Qualcomm, is that their business model isn’t broken,” McKechnie said in an interview. He said the payment was about as big as he had expected. “For Broadcom, that’s a nice chunk of change.”
Qualcomm Setbacks
“We have set aside our differences while addressing the needs of our customers, our shareholders and the industry,” Broadcom Chief Executive Officer Scott McGregor said in the statement. Bill Blanning, a spokesman for Broadcom, didn’t respond to an e-mail seeking additional comment.
Qualcomm rose 63 cents to $41.36 on April 24 in Nasdaq Stock Market trading. The shares have gained 15 percent this year. Broadcom, which has advanced 43 percent this year, added 87 cents to $24.22.
So far, Broadcom had mainly won the legal fights between the two companies. Qualcomm’s General Counsel Lou Lupin quit in 2007 after setbacks in the Broadcom litigation.
In addition to a case pending in federal court in Santa Ana, California, over sales limits on some of Qualcomm’s so- called third-generation chips, Qualcomm also was accused of trying to monopolize the market for phone chips in an antitrust case brought by Broadcom in San Diego.
ITC Case
Those cases will be dismissed, as will a case pending before the U.S. International Trade Commission in Washington, the companies said yesterday. In the ITC, Qualcomm was facing a possible enforcement action after Broadcom accused Qualcomm of violating an order that prevents some chips from entering the U.S. for testing purposes. Broadcom had won an order blocking imports of phones with Qualcomm chips, only to have the decision overturned by an appeals court.
Qualcomm had accused Broadcom of violating its patents, though it dropped several of the suits. In the only of those cases to go to trial, Qualcomm lost and was later cited for contempt for failing to turn over documents Broadcom needed to defend itself in the case.
Qualcomm was also banned from enforcing its patents on the transmission of DVD-quality video over satellites against companies that comply with an industry standard on the videos.
Last year, Qualcomm agreed to pay 1.7 billion euros ($2.24 billion) to settle a different patent suit with Nokia Oyj, the world’s largest mobile-phone maker. Qualcomm and Nokia signed a 15-year cross-licensing agreement in July on patents and wireless standards, ending lawsuits in the U.S., Europe and Asia.
European Union Complaint
Qualcomm is still being investigated by the European Union over a complaint made by Broadcom, Texas Instruments Inc. and Ericsson AB, who claimed consumers are being overcharged billions of euros for mobile-phone technology because of high royalty rates demanded by Qualcomm.
Broadcom will withdraw its complaint in that case, as well as one before the Korea Fair Trade Commission. Nokia has already withdrawn its antitrust complaints.
“We argued that the real impetus for these complaints were commercial disputes,” Rosenberg said. “What we’ll try to explain is that these cases both settled, and I hope that’s something they take into account.”
To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net; Susan Decker in Washington at sdecker1@bloomberg.net
Last Updated: April 27, 2009 00:06 EDT
Qualcomm and Broadcom Reach Settlement and Patent Agreement
-Agreement Ends Litigation Between the Companies Worldwide-
http://sev.prnewswire.com/telecommunications/20090426/LA0544726042009-1.html
SAN DIEGO and Irvine, Calif., April 26 /PRNewswire-FirstCall/ -- Qualcomm Incorporated (NASDAQ: QCOM) and Broadcom Corporation (NASDAQ: BRCM) today announced that they have entered into a settlement and multi-year patent agreement. The agreement will result in the dismissal with prejudice of all litigation between the companies, including all patent infringement claims in the International Trade Commission and U.S. District Court in Santa Ana, as well as the withdrawal by Broadcom of its complaints to the European Commission and the Korea Fair Trade Commission. Under the agreement, the companies have granted certain rights to each other under their respective patent portfolios. Qualcomm will pay Broadcom $891 million over a four-year period. The terms of this agreement will not result in any change to Qualcomm's 3G (e.g., CDMA2000(R), WCDMA and TD-SCDMA) and 4G (e.g., LTE and WiMAX) licensing revenue model.
The terms of the agreement include, among other elements:
Broadcom and Qualcomm agree not to assert patents against each other for their respective integrated circuit products and certain other products and services;
Broadcom agrees not to assert its patents against Qualcomm's customers for Qualcomm's integrated circuit products incorporated into cellular products;
Qualcomm's customers do not receive rights to any of Broadcom's patents with respect to Qualcomm integrated circuit products incorporated into non-cellular products and equipment;
Qualcomm agrees not to assert its patents against Broadcom's customers for Broadcom's integrated circuit products incorporated in non-cellular products;
Broadcom customers do not receive rights to any of Qualcomm's patents with respect to Broadcom integrated circuit products incorporated into cellular products and equipment;
Qualcomm will pay Broadcom $891 million in cash over a period of four years, of which $200 million will be paid in the quarter ending June 30, 2009. The agreement does not provide for any other scheduled payments between the parties.
Other terms of the agreement are confidential.
"We believe that this resolution is positive for both Qualcomm and Broadcom, our customers, our partners and the overall industry," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm, and Scott A. McGregor, president and CEO of Broadcom.
"The settlement will allow us to direct our full attention and resources to continuing to innovate, improving our competitive position in this economic downturn, and growing demand for wireless products and services," Jacobs said. "I am pleased that we have achieved this important settlement. At a time when the wireless industry should be focused on moving forward, the agreement removes uncertainty for Qualcomm and its customers."
"Today's settlement allows both companies to move on with their business and compete in the semiconductor sector as two of its innovation leaders," McGregor said. "We have set aside our differences while addressing the needs of our customers, our shareholders and the industry. In addition, the companies have worked together to achieve their mutual goals of improving the competitive dynamics of the industry."
About Qualcomm
Qualcomm Incorporated (NASDAQ: QCOM) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 100 Index, the S&P 500 Index and is a 2009 FORTUNE 500(R) company. For more information, please visit www.qualcomm.com.
About Broadcom
Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom(R) products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything(R).
Broadcom is one of the world's largest fabless semiconductor companies, with 2008 revenue of $4.66 billion, holds over 3,300 U.S. and over 1,300 foreign patents, and has more than 7,500 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.
Broadcom is a FORTUNE 500(R) company headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at www.broadcom.com.
Cautions regarding Forward Looking Statements:
All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on Qualcomm's and Broadcom's current expectations, estimates and projections about their respective businesses, respective management's beliefs, and certain assumptions made by Qualcomm and Broadcom, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. Examples of such forward-looking statements include, but are not limited to, references to the anticipated benefits to Qualcomm, Broadcom and other third parties related to the settlement and references to the effect of the agreement on Qualcomm's 3G and 4G licensing revenue model. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially and adversely from those expressed in any forward-looking statement.
The respective Annual Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings, of Qualcomm and Broadcom discuss important risk factors that could affect their respective businesses, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. Neither Qualcomm nor Broadcom undertakes any obligation to revise or update publicly any forward-looking statement for any reason, except as required by law. All statements made by or concerning Qualcomm or Broadcom, respectively, are made solely by such applicable party and such party is solely responsible for the content of such statements.
Qualcomm is a registered trademark of Qualcomm Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). Broadcom(R), the pulse logo, Connecting everything(R), and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. All other trademarks are the property of their respective owners.
Qualcomm Contacts:
Christine Trimble, Corporate Communications
Phone: 1-858-845-5959
Email: corpcomm@qualcomm.com
John Gilbert, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com
Broadcom Contacts:
Broadcom Business Press Contact
Bill Blanning
Vice President, Global Media Relations
Phone: 1-949-926-5555
Email: blanning@broadcom.com
Broadcom Financial Analyst Contact
T. Peter Andrew
Vice President, Corporate Communications
Phone: 1- 949-926-5663
Email: andrewtp@broadcom.com
Website: http://www.qualcomm.com/
Website: http://www.broadcom.com/
Obama's economic recipe
San Diego Union Tribune, United States - 3 hours ago
http://www.signonsandiego.com/news/business/20081109-9999-1b9obama.html
How could the president-elect's plans affect San Diego County?
By Dean Calbreath
UNION-TRIBUNE STAFF WRITER
November 9, 2008
As Barack Obama prepares to enter the White House, he faces the daunting task of – in the words of his chief economic adviser, Austan Goolsbee – “preventing the biggest financial crisis in possibly the last century from turning into the next Great Depression.”
Associated Press
and file photos
Since December, the United States has lost 1.2 million jobs. The Dow Jones industrial average has lost more than a third of its value. The growth rate in the gross domestic product has – except for a short-lived, government-funded jolt in the middle of the year – been largely negative. And even the most optimistic economists say the economy will not hit bottom until the middle of next year.
Besides pushing middle-class tax cuts intended to spur the economy by loosening more money for consumer spending, Obama's chief proposal for ending the crisis – as outlined during his campaign – is to use tax incentives and multibillion-dollar stimulus packages to keep U.S. industries humming.
Of course, it's always hard to determine what a president will do based on the promises he made on the campaign trail. Even if his intentions are pure, a president can often be hamstrung by the legislative process or the economic realities of how much a program will cost.
Advertisement“Big parts of Obama's agenda were drafted relatively early in the campaign, before the economic crisis hit its crescendo and before the government was forced to extend its $700 billion bailout to Wall Street,” said Bill Bold, senior vice president for governmental affairs at Qualcomm. “Obama and his advisers are now operating under a new fiscal reality, and a lot of their plans will need to be adapted to that reality.”
Obama acknowledged the urgent need for an economic stimulus package at his first news conference as president-elect Friday. If a plan is not approved this month in a lame-duck session of Congress, Obama said “it will be the first thing I get done as president of the United States.”
There is little question that Obama and the Democratic majorities on Capitol Hill will inject billions of dollars into the economy to keep the recession from dramatically worsening. One of their main focuses will be job creation – using government policies and programs to spur new life in such fields as heavy construction, defense, telecommunications, high technology, biotechnology and green technology.
Because each of those industries has a major presence in San Diego County, the effect on the local economy could be significant.
CONSTRUCTION: Fund $25 billion for road and bridge maintenance and school repairs
Construction. Because of the ailing housing market, construction has been at the epicenter of San Diego County's rising unemployment rate. Since building projects peaked in June 2006, 15,100 construction jobs have been lost. Although the vast majority of those job losses were related to home building, 1,100 were involved in heavy construction, including work on roads, office buildings, warehouses, and water and sewage systems.
Obama's plan – which, with the help of his allies in Congress, might be launched even before he gets into office – includes a $25 billion “jobs and growth fund” for road and bridge maintenance and school repairs, as well as $25 billion to help state and local governments fund health, education and housing programs.
The San Diego Regional Chamber of Commerce and the San Diego Association of Governments are compiling a wish list of programs they would like to see funded, focusing on projects on which construction can begin within 90 to 120 days of funding. They have met with Rep. Bob Filner, D-Chula Vista, to relay their request to Capitol Hill.
“We want to make sure that San Diego is well-positioned to get these projects, which could generate economic activity, generate jobs and improve our infrastructure,” said Ruben Barrales, president of the chamber. “These are not make-work projects. They're things that need to be done.”
DEFENSE: Increase size of military
Defense. Obama plans to increase the size of the military by 65,000 soldiers and 27,000 Marines, with the goal of allowing the troops to spend more time with their families between their tours of duty.
“Bringing the troops home and keeping them here longer would be good for San Diego,” said Kelly Cunningham, economist with the San Diego Institute for Policy Research. “When Marines are shipped out, whatever payroll they're receiving, they're not spending it in San Diego. Sometimes, their families leave the area to live more cheaply with their own families elsewhere. Bringing them home would be good for their morale and good for the economy.”
In addition to troop increases, Obama said he wants greater investment in advanced technologies, including unmanned aerial vehicles, or UAVs, and electronic warfare programs.
Cunningham said that will be good news to San Diego military technology companies such as Science Applications International Corp. as well as UAV developers such as Northrop Grumman and General Atomics Aeronautical Systems. This year, Northrop Grumman said it plans to add 1,700 workers to its UAV production line in San Diego.
On the other hand, Obama has pledged to “develop a strategy for determining when contracting makes sense, rather than continually handing off governmental jobs to well-connected companies.” Although that could end up saving the government money, it could also make it harder for companies to land federal contracts.
TELECOMMUNICATIONS: Expand broadband technology throughout United States
Telecommunications: Obama wants to expand broadband technology throughout the United States through more efficient use of the nation's wireless spectrum, promotion of next-generation systems, tax incentives and reform of the Universal Service Fund, a government program aimed at expanding communications services, funded by fees assessed to long-distance carriers.
Assuming that the plans go forward, the goal would be to generate jobs, to improve telecom services in rural and low-income communities and to modernize health and education services with the most up-to-date technologies.
That could be a boon to San Diego telecom companies such as Qualcomm, which is one of the global leaders in wireless broadband technologies, and Qualcomm-spinoff Leap Wireless, which has been launching wireless broadband services in selected cities across the country.
“These are ideas and concepts that really resonate with Qualcomm and that we support,” said Qualcomm lobbyist Bold. “As we've pointed out to (Obama) and some of his staff in Washington, wireless broadband is uniquely positioned to reach some of the hardest-to-reach communities.”
HIGH TECH: Keep the R&D tax credit
High technology: Obama has pledged to double federal funding for basic research, fund more science and math education, and make the federal tax credit for research and development permanent.
“The emphasis on R&D and education is very positive for our industry,” said Kevin Carroll, who heads the local chapter of the AeA, formerly the American Electronics Association. “Extending the R&D tax credit has been a real priority for the entire industry.”
Currently, the R&D tax credit has to be renewed each year by Congress. Gaps in the timing of the renewal – as well as the uncertainty regarding whether the credit will be renewed at all – can wreak havoc with the planning and earnings of research-heavy companies.
For instance, ViaSat, a satellite communications firm in Carlsbad, spent more than $32 million on R&D during its most recent fiscal year, the equivalent of 13 percent of its revenue. When the R&D tax credit expired at the end of last year, it resulted in a dip of several cents per share in the company's quarterly earnings, said Mark Dankberg, the company's chairman.
Dankberg said ViaSat pays an effective tax rate of 27 percent when the R&D tax credit is in effect, compared with 35 percent without the tax credit. “Overall, we believe that the benefits of the tax credit for us are quite worthwhile,” he said.
BIOTECH: Increase funding for research
Biotechnology: Obama's economic program includes pledges to bolster federal funding for biotech research and to advance stem cell research. Although the pledges are vague, he has a track record of supporting biotech projects. For instance, as a state legislator in Illinois, he introduced a bill to allow embryonic stem cell research, in contrast to the Bush administration, which has largely blocked federal funding for such research.
“I'm feeling very positive about some of the things we've seen and heard about Obama's plans to increase funding for basic research,” said Joe Panetta, executive director of San Diego's Biocom, an association representing the local biotech industry.
Panetta said a number of local biotech firms depend on federal funds for research, largely distributed through the National Institutes of Health. Federal support of stem cell research would also aid the Burnham, Scripps and Salk research institutes.
Although California has enacted its own $3 billion stem cell research program, under current federal regulations, embryonic research must be conducted separately from federally funded research.
“That's an incredible nightmare in logistics and operations,” Panetta said. “It would be great to see the rules loosening.”
Mike Havrilla, stock analyst with ETF Innovators, said Obama's health care plans – which emphasize preventive screening – could also help create more business for diagnostic and lab service firms, such as locally based Sequenom and Genoptix.
GREEN TECHNOLOGY: Create jobs in alternative energy
Green technology. Obama's goal is to create 5 million jobs over the next 10 years by investing $15 billion per year to develop plug-in hybrid cars, weatherized homes, solar and wind power, and natural gas pipelines. His goal is to ensure that 10 percent of the nation's energy comes from renewable sources by 2012 and 25 percent by 2025.
“Obama's plans are very positive,” said Rod Schrock, who heads D-Rock Investment Services in Encinitas, a hedge fund that invests in renewable-energy projects. “They're pretty consistent with what's going on with energy in Japan and Europe.”
San Diego County is becoming a center for solar-technology development, thanks to such firms as Kyocera International in Kearny Mesa, Envision Solar in La Jolla and Clean Power Systems near Scripps Ranch. Because of the worldwide demand for solar energy, Kyocera is doubling solar-panel production at its plant in Tijuana. Obama's push for renewables could create even more demand.
Obama's desire to use investments or tax breaks for green technology, high tech, construction or the defense industry is likely to encounter head winds as the economy contracts and the government is pushed to spend more money on the ailing financial sector.
In his news conference Friday, Obama stressed that he does “not underestimate the enormity of the tasks that lie ahead.” But he also added that “the one thing that I can say with certainty is that we're going to see a stimulus package passed” and that “we are going to have to focus on jobs.”
With San Diego's unemployment rate hovering above 6 percent, that kind of stimulus program would be welcomed here.
--------------------------------------------------------------------------------
Dean Calbreath: (619) 293-1891; dean.calbreath@uniontrib.com
Qualcomm Quite Cheap
by: Sramana Mitra November 09, 2008
http://seekingalpha.com/article/104941-qualcomm-quite-cheap
On Thursday, Qualcomm (Nasdaq: QCOM), which tops my Top 10 Semiconductor Stocks list, reported mixed fourth quarter and fiscal year 2008 results. Q4 revenue grew 45% y-o-y and 21% q-o-q to $3.33 billion and included the $560 million in licensing and royalty revenues received from Nokia (NOK) as part of Qualcomm’s new agreement. Net income, however, was down 22% y-o-y and up 17% q-o-q to $878 million, or $0.52 per share as the company suffered losses of $327 million on financial investments. At the end of October, these losses increased to $1.3 billion. Analysts had expected revenue of $2.86 billion and earnings of $0.60 per share.
Its cash, cash equivalents and marketable securities were about $11.3 billion at the end of Q4, compared to $11.2 billion last quarter and $11.8 billion last year. It paid $266 million cash dividends in the quarter.
In fiscal year 2008, Qualcomm generated revenue of $11.14 billion, up 26%. Net income was down 4% to $3.16 billion or $1.9 per share. During 2008, it paid $982 million cash dividends and bought back shares worth $1.67 billion.
By segment, Qualcomm CDMA Technologies (QCT) revenue grew 24% y-o-y and flat q-o-q to $1.76 billion. Qualcomm Technology Licensing (QTL) revenues increased 112% y-o-y and 71% q-o-q to $1.374 billion. In Qualcomm Wireless & Internet (QWI), revenue was down to 22% y-o-y and flat at $190 million.
In Fiscal 2008, QCT had operating margin of 27% and shipments of 336 million MSMs. QTL operating margin was 87% in 2008. ASP was $216 for Q4 and $219 for 2008, positively affected by about $13 by the weaker dollar.
Qualcomm made some management changes during the quarter: it appointed Len Lauer as chief operating officer, Steve Mollenkopf as president of QCT and Derek Aberle as president of QTL.
Based on reduced orders, Qualcomm expects fiscal 2009 revenues to be in the range of $10.2 to $10.8 billion, down 3% to 8%, and EPS between $2 and $2.10 per share. Analysts forecast revenue of $12.13 billion and EPS of $2.58. For the first quarter of 2009, the company expects revenue in the range of $2.3 to $2.5 billion and EPS in the range of $0.46 to $0.50 versus analyst estimates of $0.61.
Despite the bleak economy, Qualcomm is well positioned in the 3G industry. According to Wireless Intelligence, 3G subscribers grew 33% y-o-y and numbered over 705 million at the end of September. The company is expected to grow to 1.6 billion by 2012.
Qualcomm has also released the Gobi module that delivers embedded 3G connectivity in laptops. Acer, Dell (DELL), HP (HPQ), Lenovo (LNVGY.PK) and Panasonic (PC) have announced their plans to use Gobi. The stock is currently trading around $33 with a market cap of about $54 billion. It hit a 52-week low of $32.21 on October 24. This is another great company that is trading at a cheap price.
Hi, Gregorio, I am glad to see you very active here. I was in Bali about 10 year ago. It is beautiful place to visit especially Jimbaran. It is widely known for the fresh seafood kiosks that are scattered along the beach. Another beautiful place is Kuta, the number 1 sunset site with its daily spetacular sunset and center of night life activities. If you like tropical fruits such as Rambotans, Mongustines, Durians and papayas, Bali is the place to go. As you said, now it is not the time, because our dollars are so weak, it will cost alot to get there.
Best.
Biz, Good choice. Bali, Indonesia is a very beatiful place to visit, but be aware of pick pocket.
IPR detente
July 28 2008 - 1:18 pm EDT | Phil Carson | RCR Wireless News
Comment on this story
http://www.rcrnews.com/article/20080728/FREE/723028759
WITH A LARGELY CONFIDENTIAL SETTLEMENT signed, sealed and delivered by Nokia Corp. and Qualcomm Inc. last week, arguably the most significant stand-off in the wireless industry has been resolved.
But when two of the most influential competitors in the business snuggle up for a campfire sing-along — a scenario far from guaranteed, as further talks focus on future collaboration — other rivals have reason to take stock of the implications.
Has Nokia obtained the means to hedge its staggering market share, lead in the rapid expansion of the 3G market and profit even more handsomely than yesterday. (Hint: yes.)
Has Qualcomm strengthened its hand in IPR licensing, positioned itself even better for the future and possibly gained the largest chip customer on Earth? (Hint: Oh yeah.)
Crowing
First, both sides delivered signals to justify dealing with a former enemy and make moot the question of whether one party or the other blinked.
Nokia CEO Olli-Pekka Kallasvuo said, in part, that “this agreement is within Nokia’s original expectations and fully reflects our leading intellectual property and market positions.” (Read: Qualcomm cut its royalty rate, partly to account for Nokia’s emphasis on its own IPR holdings. Analysts guess-timated that Qualcomm may have reduced its royalty rate to less than 2%, from about 3% to 5%, previously.)
Qualcomm CEO Paul Jacobs said that “the terms ... reflect our strong intellectual property position across many current and future-generation technologies.” (Read: Nokia will continue to pay royalties, and so will our other licensees. Qualcomm likely will continue to earn revenue streams from the current growth in 3G technologies and is poised to claim a share of IPR-licensing royalties in next-generation technologies such as LTE and WiMAX.)
Nokia CFO Rick Simonson, in an interview with RCR Wireless News, discounted the notion that the companies’ statements signaled vindication. Nokia’s statement required “all of five minutes” to draft, Simonson said.
Deal details
First, the public contours of the deal:
The agreement covers 15 years — a staggering length of time in an industry that morphs every year or two. And it covers a slew of technology standards, including GSM, EDGE, CDMA, W-CDMA, HSDPA, OFDM, WiMAX, LTE and “other” technologies. All pending litigation will be settled; though in what manner remains to be seen. Nokia will assign ownership of a number of patents to Qualcomm, including patents deemed essential to W-CDMA, GSM and OFDM. Nokia will make an upfront payment to Qualcomm to settle outstanding claims to unpaid royalties and will continue to pay royalties, albeit at a presumably lower rate.
Left confidential: the size of Nokia’s upfront payment, its new royalty rate and the two sides’ reference to “enhanced opportunities between the companies in a number of areas.” The latter should cause shivers in nearly every quarter of the industry. Asked about a possible Nokia push in the United States’ 60% CDMA market, for instance, Simonson said that the agreement “removed legal obstacles” but asked for patience as the two companies’ technology teams conferred.
Everyone’s a winner?
Although the legal issues at stake in last week’s canceled court case had not been heard, Simonson said that Nokia’s position on its own patent portfolio — and licensing practices — remained unchanged. That led analyst Mark McKechnie at American Technology Research to speculate that, having confirmed Qualcomm’s IPR-licensing model, Nokia might take a more aggressive stance in charging for its own IPR.
Wall Street reacted to the news by immediately boosting Qualcomm’s stock as much as 17% and Nokia’s by 4%.
Analysts’ reactions spelled out some of the industry-wide implications.
McKechnie called the agreement “a game changer.” (He estimated Nokia’s new royalty rate at 1.5%.)
“The 3G agreement is positive as it gets Qualcomm paid starting now and establishes Qualcomm as a ‘clean’ play,” McKechnie wrote in a note to investors today. “We view the 4G component as equally important, however, as it provides visibility of growth beyond 3G and into the 2020 timeframe.”
Analyst Ittai Kidron at Oppenheimer wrote that the agreement “sets a bar for the whole industry establishing Qualcomm as a company all must deal with to be a player in current 3G and future 4G technologies. ... Qualcomm’s business model has been validated.”
“With Nokia recognizing Qualcomm’s IP position in 4G technologies,” Kidron added, “we believe no other OEM will be able to challenge Qualcomm’s position.”
Zacks #1 Rank Additions for Wednesday
Wednesday July 30, 8:04 am ET
http://biz.yahoo.com/zacks/080730/13935.html?.v=1
Here are the stocks added to the Zacks #1 Rank ('strong buy') List today:
AZZ Inc (NYSE: AZZ - News)
Bucyrus International Inc (NasdaqGS: BUCY - News)
CE Franklin Ltd (AMEX: CFK - News)
Enbridge Energy Partners LP (NYSE: EEP - News)
Energy Transfer Equity LP (NYSE: ETE - News)
Enterprise Products Partners LP (NYSE: EPD - News)
Federal-Mogul Corp (NasdaqGM: FDML - News)
Forest Oil Corp (NYSE: FST - News)
Frontline Ltd (NYSE: FRO - News)
IPC Holdings Ltd (Other OTC: IPCRF.PK - News)
Microtune Inc (NasdaqGM: TUNE - News)
NetLogic Microsystems Inc (NasdaqGM: NETL - News)
PAR Technology Corp (NYSE: PTC - News)
Qualcomm Inc (NasdaqGS: QCOM - News)
RWE AG (Other OTC: RWEOY.PK - News)
Sotheby's (NYSE: BID - News)
Telecomunicacoes de Sao Paulo SA (NYSE: TSP - News)
Valmont Industries Inc (NYSE: VMI - News)
Stocks to buy in 2008: Barrons roundtable
20.01.2008 21:26 Sunday
http://www.fxtraders.eu/article.php?id=15432
- Bullish mentions for UPL. Art Samberg, Chairman and CEO, Pequot Capital Management: "a gas exploration and production company with some of the best exploration assets in North America."
- Bullish mention for WFR.
- Bullish mention for QCOM. Art Samberg, Chairman and CEO, Pequot Capital Management: "It is now the sixth-largest non-memory-chip semiconductor company in the world. But the company is really a play on 3G GSM [global system for mobile communications] phones. About 1.2 billion cellphones are shipped per year. About 200 million are CDMA [code-division multiple access] and a billion are GSM. All of Qualcomm's products have gone into the CDMA and WCDMA [wideband CDMA] market."
- On Nokia, QCOM court case: "They will negotiate something. Qualcomm's core patents are valid. This is just about Nokia getting the old royalty rate, when CDMA was more of a niche market. Royalties of 3% aren't uncommon," says Samberg.
- Bullish mention for FMCN.
- "My strategy is simple," says Fred Hickey, editor of The High-Tech Strategist. "Buy gold (GLD), sell horsemen - that is, the big-cap technology stocks RIMM, AAPL, GOOG and AMZN.
- Bullish mention for AEM.
- Bullish mentions for MHK, WHR, AEO, GPC, ENSI, DISH, TVL,
Art Samberg's 6 Picks for 2008 - Barron's
posted on: January 20, 2008 | about stocks: AMX / FMCN / QCOM / UPL / WFR Print Email
http://seekingalpha.com/article/60838-art-samberg-s-6-picks-for-2008-barron-s
Art Samberg, Chairman and CEO, Pequot Capital was one of Barron's 2008 Roundtable participants. He likes six U.S.-traded stocks that include two plays on Brazil, a natural gas producer, and a Chinese advertiser:
Ultra Petroleum (UPL) - "a gas exploration and production company with some of the best exploration assets in North America." Its all-in costs are among the lowest in the industry, and it boasts almost 100% drilling success. Its Rockies Express pipeline, which begins operating this month, will boost output. Natural gas prices could easily rise relative to crude.
MEMC Electronic Materials (WFR) - the solar boom has driven prices for its polysilicon wafers to 10-times normal. Its "fluidized-bed" production has a big cost advantage over Siemens' (S) competing approach.
Qualcomm (QCOM) - a play on 3G GSM [global system for mobile communications] phones. If it gets a likely 2.5% royalty-rate court settlement with Nokia (NOK), EPS (2009 current est. $2.38) could jump to $3.
Focus Media (FMCN) - in China, LCD ad panel advertising is hugely popular, drawing as much as 10% of ad budgets. FMCN has an 80% market share.
Brazil plays Gafisa (GFA) and America Movil (AMX) - Latin America avoided subprime investments that have wreaked havoc in the rest of the world. Brazil has huge excess liquidity and a growing middle class. Homebuilder Gafisa is "dirt cheap" given the recent increase in Brazilian property values. Wireless provider America Movil stands to gain from a recent easing of competition that has seen minutes-of-use boom.
SA Editor
Eli Hoffmann
The EU's War On (U.S.) Innovation
October 02, 2007: 08:05 PM EST
http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-19988471.htm
Oct. 2, 2007 (Investor's Business Daily delivered by Newstex) --
Competitiveness: Fresh from their sweeping antitrust victory over Microsoft (NASDAQ:MSFT) , Europe's bureaucrats have another successful U.S. company in their sites: Qualcomm. (NASDAQ:QCOM) The EU says it's all about fairness, but we know better.
Just two weeks after its decision to levy some $631 million in fines on Microsoft, the EU's antitrust bureaucracy has now decided to go after telecommunications giant Qualcomm, too.
In case you don't know, San Diego-based Qualcomm is at the heart of the cellphone revolution. Its innovative chipsets have made it possible for people the world over, no matter how remote, to have phone service, and for people in business to be constantly in touch with their home offices.
That includes, by the way, the 27-nation EU's 493 million people.
When the Microsoft decision came down in late September, European analysts and lawyers went out of their way to say this wasn't indicative of some new anti-competitive mood in Europe, but rather a case of one company abusing its competitive clout and consumers.
One EU attorney, when asked if there would now be a "rampage" against American firms, shot back "absolutely not."
Those watching the Microsoft debacle, however, would have been much wiser to heed the words of EU Competition Commissioner Neelie Kroes, who fired a warning shot over the heads of all successful U.S. companies, saying the Microsoft decision "sends a clear signal that super-dominant companies cannot abuse their position to hurt consumers and dampen innovation ..."
The irony, of course, is Microsoft has bent over backwards to accommodate the EU, letting Europe's sluggard companies freeload off Microsoft's patents and intellectual property. But, of course, consumers aren't interested. They want the real thing.
Now, emboldened by its success against Microsoft, the EU's Orwellian-themed Competition Commission is going after Qualcomm.
Nor will Qualcomm be the last American champion that the EU's aggressive bureaucrats try to take down. Reportedly, there's a long list of companies now in the EU's sights, including Apple, Intel (NASDAQ:INTC) , Rambus and a handful of energy companies.
It seems Europe's rather weak tech sector needs the bureaucrats to do what they can't -- beat Microsoft. The EU's recent antitrust binge is a form of trade protection and, in all frankness, amounts to property theft. Trade economists note such actions will lead to higher costs, less innovation and lower standards of living for all -- not exactly a strong selling point 15r EU antitrust theory.
There's no legitimate legal basis for this. The EU simply made one up. But having succeeded once, it now feels emboldened to go after any successful American company that does business there.
It's not hard to figure out why.
As we noted not even a month ago, the EU is lagging seriously behind the U.S. in average GDP per employed person -- the broadest, and most meaningful, measure of productivity.
The average American worker produced $81,454 in real GDP in 2006, according to recently updated Department of Labor data. By comparison, the average worker in France put out $73,134, in Germany $59,870, in the United Kingdom $65,684. And so on.
In short, the EU lags the U.S. in productivity (and thus, standard of living), and badly.
Why? As we quoted International Labor Organization employment chief Jose Manuel Salazar nearly a month ago, it "has to do with the (high-tech) revolution, with the way the U.S. organizes companies, with the high level of competition in the country, with the extension of trade and investment abroad."
And that, in a nutshell, is why Europe has declared war on U.S. innovators and tech champions. It has nothing to do with "fairness" or "consumers" or even "antitrust." It's really a fear of the future.
The EU has stuck itself in a competitive mire with its stiff labor rules, extensive welfare state, high taxes and refusal to innovate. Its bureaucrats clearly fear the EU's statist ways will consign the continent to also-ran status for the remainder of this century.
Having no easy answer for Europe's ills, they attack America's best. But they do so in the courtroom, not in the marketplace.
That might work for a little while, but it's no strategy for greatness. The EU and the U.S. account for 40% of world trade and investment -- nearly $3 billion a day crosses borders. But Europe's rampant rule-making saddles companies there with $850 billion a year in costs. And its ridiculous labor laws create near-double digit joblessness.
The EU won't grow any faster by taking down America's high-tech winners. Nor will the EU's people -- having less choice and facing higher prices -- be any happier. It's bad for them, and bad for us.
It's time for the EU to end its economically foolish antitrust war against U.S. high-tech champions, and start competing for real.
Newstex ID: IBD-0001-19988471
Originally published in the October 2, 2007 version of Investor's Business Daily.
Politicos want veto of cell phone import ban
Posted by Anne Broache
July 11, 2007 2:22 PM PDT
http://news.com.com/8301-10784_3-9742886-7.html
WASHINGTON--Politicians from both parties on Wednesday said they were protesting a recent decision that would ban the U.S. import of all future models of mobile phones containing Qualcomm chips found to have violated Broadcom patents.
The president has the authority to overturn the U.S. International Trade Commission decision, and some members of a U.S. House of Representatives panel said at a lengthy hearing about wireless consumer issues that they have been urging that to happen.
"I will be active in talking to the ambassador and trying to find a different remedy that doesn't potentially affect service for millions of Americans," said Rep. Jay Inslee (D-Wash.). Rep. John Shimkus (R-Ill.) said he and others have also drafted a letter expressing concerns to that effect.
Rep. Fred Upton (R-Mich.) said the politicos weren't taking a position on the merits of the patent case but were deeply concerned that, as a result of the ITC ruling, "new wireless technologies may well be kept from the marketplace, effectively freezing wireless innovation."
Qualcomm has already asked a federal appeals court to put a hold on the ITC's order, which was issued June 7 and does not affect devices that are already on the market. Verizon Wireless general counsel Steven Zipperstein warned the politicos on Wednesday that the impact on innovation in the U.S. wireless space "will be devastating" if the decision isn't tossed.
(Update1)Qualcomm Rejects Broadcom's Lawsuit Settlement Offer
By Peter J. Brennan and Jeff St.Onge
Qualcomm display at the Korea IT Show 2007 June 28 (Bloomberg) -- Qualcomm Inc., the world's second- biggest maker of chips that run mobile phones, rejected an offer from smaller rival Broadcom Corp. to settle a patent dispute, saying it would cost as much as $2 billion.
Broadcom is seeking $6 for every handset sold with a Qualcomm chip that was found to infringe a patent for a battery- saving feature, Broadcom spokesman Bill Blanning said today. Qualcomm rejected the offer, made earlier this week, and instead offered to pay $100 million and agree that the companies would give each other royalty-free access to patents.
``Broadcom is asking for a royalty rate for one patent greater than the rate we ask for our entire portfolio,'' Qualcomm spokesman Bill Davidson said in an interview. ``We rejected it because it's an extraordinary request.''
The U.S. International Trade Commission on June 7 proposed banning some mobile-phone imports after finding Qualcomm's new processors infringe a Broadcom patent.
A settlement would mean the newest phones with San Diego- based Qualcomm's chipsets would be able to enter the U.S. For Broadcom, which is seeking to expand its sales from markets such as set-top boxes into mobile phones, accepting a settlement would let the company more easily sell its chips to manufacturers without fear of lawsuits from Qualcomm.
Broadcom has made several offers on a ``fully exhaustive'' license and Qualcomm has failed to make a detailed response, Broadcom's Blanning said in an e-mail.
`Small Fraction'
Shares of Irvine, California-based Broadcom fell 76 cents, or 2.5 percent, to $29.60 at 4 p.m. New York time in Nasdaq Stock Market trading and have dropped 8.4 percent this year. Qualcomm rose 4 cents to $43.46 and has gained 15 percent in 2007.
The companies traded offers this week in letters that were circulated among U.S. carriers such as AT&T Inc. and telephone manufacturers including Motorola Inc. The phone companies are joining with Qualcomm to oppose the ITC ban, which stems from a spat of lawsuits that began in 2005.
Broadcom's $6 per handset offer is ``a small fraction of the revenue generated for each such handset by the carriers,'' Broadcom General Counsel David Dull wrote in a June 25 letter to Marvin Blecker, Qualcomm's president of technology licensing.
Qualcomm said the fee would amount to a royalty of at least 30 percent on its chipset for each handset. That means this patent could cost the industry about $1.5 billion to $2 billion over three years, according to a June 27 response from Blecker.
`Out of Proportion'
Broadcom's remedy is ``grossly out of proportion to the value of this particular patent,'' Blecker wrote in his reply. Bloomberg News obtained copies of both documents.
Qualcomm's offer of royalty-free access to its patents is similar to one the chipmaker has with larger competitor Texas Instruments Inc. of Dallas. Qualcomm generates the bulk of its royalties by charging handset makers less than 5 percent of the wholesale cost of a handset.
Royalties generated $636 million of Qualcomm's earnings before taxes, or about 67 percent of its profit for the quarter that ended in March.
The ITC ban is opposed by the largest U.S. wireless carriers and emergency-response units. The decision is being reviewed by Schwab and possibly by President George W. Bush, with a final decision on whether to approve the ITC ruling due before Aug 7.
Qualcomm and handset makers such as Samsung Electronics Co. and LG Electronics Inc. are asking a federal appeals court to put the proposed ban on hold. The U.S. Court of Appeals for the Federal Circuit in Washington this week ordered Broadcom and the ITC to lodge their written arguments by July 3.
Broadcom has set a goal of reaching up to 15 percent market share in the principal chips for mobile phones by 2009 or 2010. The company had 1 percent in 2006, according to researcher iSuppli Corp. in El Segundo, California. Texas Instruments led the market with 31 percent, followed by Qualcomm with 27 percent.
The case is In the Matter of Certain Baseband Processor Chips and Chipsets, 337-543, U.S. International Trade Commission.
To contact the reporters on this story: Peter J. Brennan in Los Angeles at pbrennan3@bloomberg.net ; Jeff St.Onge in Washington at jstonge@bloomberg.net .
Last Updated: June 28, 2007 16:14 EDT
http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=QCOM:US&sid=ag5rIkCc....
Sprint using Qualcomm patch to workaround ITC ban
Mon Jun 25, 2007 5:34pm ET
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070625:MTFH71708_2...
CTIA asks for presidential veto of ITC Qualcomm ban
Wed Jun 20, 2007 4:38pm ET
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070620:MTFH11024_2...
Credit Suisse: QCOM "outperform",target price is set to $58.
Monday, June 11, 2007 6:26:50 AM ET
Credit Suisse
NEW YORK, June 11 (newratings.com) - In a research note published on June 8, analyst M Ounjian of Credit Suisse maintains his "outperform" rating on QUALCOMM Incorporated (QCOM.NAS). The target price is set to $58.
http://www.newratings.com/analyst_news/article_1547681.html
Bear Stearns: QCOM "outperform",target price is set to $55.
Monday, June 11, 2007 7:41:59 AM ET
Bear Stearns
NEW YORK, June 11 (newratings.com) - In a research note published on June 8, analysts at Bear Stearns maintain their "outperform" rating on Qualcomm Inc (QCOM.NAS). The target price is set to $55.
http://www.newratings.com/analyst_news/article_1547766.html
Well said, demi22. I believe in Qualcomm's managent team. We will see one of the followings:
- President Bush veto ITC decision in 60 days or
- Federal court of appeals stay the order or
- settlement between Brcm and Qualcomm.
Adverse Patent Ruling Could Hurt Qualcomm, Others
http://www.smartmoney.com/Techsmart/index.cfm?story=20070606
From Yahoo BRCM Board: Merrill's comments on brcm/qcom ruling
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_B/threadview?m=tm&bn=2581&tid=3....
Broadcom, Qualcomm Promise Further Legal Action
By Wayne Rash
May 31, 2007
http://www.eweek.com/article2/0,1895,2139484,00.asp
Broadcom will ask a federal court in Santa Ana, Calif., to permanently enjoin Qualcomm from infringing on patents it holds.
A federal jury found on May 29 that Qualcomm had willfully infringed on three Broadcom patents involving wireless technology. A spokesperson for Qualcomm, however, said that the jury found that the company had not infringed on a Broadcom claim involving cell network handoffs that was also part of the lawsuit.
The three patents that the jury upheld involve the use of two networks on a single transceiver, video processing and push-to-talk features. While the jury has decided in favor of Broadcom on three patent claims, the legal action is by no means over. Alex Rogers, senior vice president and legal counsel at Qualcomm, told eWEEK that he intends to file post-trial motions asking the court to overturn the verdict, and if that fails, Qualcomm will appeal the verdict to the U.S. Circuit Court.
"We're very disappointed in this verdict," Rogers said, "We feel very strongly in our position with this patent. We plan to file our post-trial motion with the judge and following that we'll take the case to appeal in the federal circuit."
Rogers said that he believes Qualcomm has a strong case, especially in light of the recent decision by the U.S. Supreme Court that makes it harder for businesses to get a patent for an idea that is clearly obvious. A Broadcom spokesperson did not respond to eWEEK's request for comment, but the company did issue a statement detailing its ongoing legal feud with Qualcomm. The two companies have sued each other repeatedly, and the May 29 action was simply the latest in a long series of legal maneuvering by both companies.
Click here to read more about the companies' claims of trade secret misappropriation and patent infringement.
"Sometimes you win, sometimes you lose," said analyst Craig Mathias, principal of the Farpoint Group. "I don't really think it's that significant," he said. Mathias pointed out that most actions such as the suits filed by Broadcom and Qualcomm against each other have less to do with the law than with business tactics. "High-tech companies sue one another for competitive reasons," Mathias explained. "They have to license each other's technology. It'll be covered by cross-licensing."
"These companies don't like each other, but they won't compromise their long-term business outlook just because they want to be nasty," Mathias said. "The lawyers will drag this out for quite some time," he said. "There will be a lot of discussions. It would be more significant if Qualcomm lost access to some of its own patents." But Mathias noted that so far, Qualcomm hasn't even been enjoined from using the patents that Broadcom won the case on.
"This won't have any effect on 3G deployment," Mathias said. "Broadcom could seek an injunction, but I think they'd rather get a royalty return. Not doing business is in no one's interest. They will work out a deal that will be satisfactory to all parties," he said. Mathias pointed out that such legal tactics are simply a popular business practice in fields such as this. "There's competition in all kinds of domains," he said. "This is just competition in the legal domain. It's par for the course." He added that there's little to be gained for Broadcom by shutting Qualcomm down. "They just want their money," he said.
Gartner analyst Stan Bruederle said that the legal action is really more about setting up the terms of the eventual license negotiations than it is about winning or losing court cases. "Broadcom's point is that they need to have value established in negotiations," Bruederle explained. He said that one reason that Broadcom and other competitors are engaging in these legal tactics is ultimately to save money on licensing fees they currently pay to Qualcomm.
"Everyone wants these things to be resolved," Bruederle said. "Qualcomm wants to protect their licensing revenue flow. Sometime in the next year, I expect there will be resolution. I don't believe that a court will decide to keep Qualcomm from shipping their phones into the country," he said, referring to a separate suit by Broadcom that has asked the federal government to prevent Qualcomm from shipping phones into the United States. "I don't think they want to put anyone out of business, they just want to protect their position in future negotiations."
No effect on sales or customers.
Bruederle said that he thinks Broadcom's suits are unlikely to affect phone sales or customers. "I don't think over the next few years there will be much effect at all. There are multiple chips that go into these phones. Customers don't have a single source." Bruederle said that he doesn't think the suits will have any effect at all on end users, and that the suits should not have any effect on 3G deployment.
ADVERTISEMENT "On the other side of that, with all their experience and all of the years Qualcomm has been designing CDMA [Code Division Multiple Access]-based technologies you have to take them as a pretty competent chip supplier in this arena," Bruederle said. He pointed out that this ultimately means that companies will have to license patents from each other in order to make the products their customers want. "I think there will be some amount of cross-licensing, so that recognizes the intellectual properties of the companies negotiating," he said.
Both Bruederle and Mathias pointed out that the monetary award in this case, under $20 million, is insignificant. "Pocket change," said Bruederle.
"It's really nothing," agreed Mathias.
Analyst Jack Gold, founder of J. Gold Associates, said that lawsuits such as the Broadcom-Qualcomm dispute are to be expected. "What goes around comes around," Gold said. Gold said that it's usually hard to predict how juries will decide these cases. "All of these suits are really tough because you have to prove this esoteric stuff to people who don't understand," he said.
"What it does prove is that all of these tech giants are trying to play the legal system to their advantage," Gold pointed out. "That works for a while, but ultimately what you really have to do is make products," Gold said. "Products change so quickly in this space, that if you're wasting time suing people, it's wasted resources."
Ultimately, Gold said, he doesn't see how this latest verdict will affect Qualcomm in any way. "It's not a big deal. Business will go on, and nobody in the user community will notice," Gold said.
But Gold did question the motivation for the suits by Broadcom, Qualcomm and others. "Are these patents so critical that it will negatively impact their business, or is it just trying to keep other companies from competing with them?" he asked.
"Those folks that have a stable of patents will have to decide whether they're going to defend all those patents, or be good engineers and move the market forward," Gold said.
Post-trial motions are set to begin in the case on June 18.
Verizon hopes for stay if Qualcomm ruling negative
Thu May 31, 2007 9:30am ET
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070531:MTFH48811_2...
From Yahoo QCOM Board: deciphering JP Morgan analyst comments (1 Rating) 29-May-07 11:52 pm
Courtesy of ruseeingclearly
JPMorgan Securities analyst Ehud A. Gelblum wrote in a client report 3 things to consider...
First, Gelblum said the ITC may be reconsidering whether Broadcom's patents are valid in light of a Supreme Court ruling last month restricting patents from covering obvious uses.
Second, the ITC may be weighing what effect an outright ban on Qualcomm's chips would have on phones sold by telecommunications companies like AT&T and T-Mobile. AT&T claimed earlier this month a ban on phones with Qualcomm chips would hurt sales because there are no available substitutes.
Third, Gelblum said Broadcom and Qualcomm may be close to settling this matter on their own, and the ITC delayed its decision to give the two companies time to hammer out a deal.
The MOST important point is no. 2. Reading between the lines I can't help but believe this is code for (as James Cramer says)BUYBUYBUYBUYBUY!!!!! WCDMA is the standard of the future of cell phones because of data transfer. And the iPhone is using it and so will everyone on the planet. If you thought Apple rocked watch what QCOM does. Back up the truck and don't be tardy now.
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_Q/threadview?m=tm&bn=14982&tid=....
From Qualcomm web site: Federal Jury Finds QUALCOMM Infringes Three Broadcom Patents
http://www.qualcomm.com/press/releases/2007/070520_federal_jury_finds.html
SAN DIEGO — May 29, 2007 — QUALCOMM Incorporated (Nasdaq: QCOM) announced that a federal jury in Santa Ana, California returned verdicts today finding that certain of QUALCOMM’s products infringe three patents owned by Broadcom Corporation. The jury found that QUALCOMM does not infringe one claim of one of the Broadcom patents. The three patents at issue in this case (U.S. Patents Nos. 6,847,686; 6,389,010; and 5,657,317) were acquired by Broadcom from third parties and then asserted by Broadcom against certain QUALCOMM products. The court set a hearing for June 18 to schedule post-trial motions and further proceedings, including whether any injunctive relief is appropriate.
Broadcom filed the lawsuit in May 2005, alleging that five of its patents had been infringed. During the course of the litigation, Broadcom dismissed one patent, and the court stayed the case with respect to a second patent. Broadcom had purchased all the patents at issue, and none of the patents Broadcom litigated at trial were inventions developed specifically in connection with cellular technology or standards.
The jury awarded Broadcom a total of $19.6 million in damages and found that QUALCOMM’s infringement was willful. A damages award may be increased up to three-fold for willful infringement. The trial judge will determine whether there should be any increase in the damages award based on the finding of willfulness.
“We continue to believe that none of the Broadcom patent claims are valid or were infringed by QUALCOMM, and we will challenge the jury’s findings of infringement, validity and willfulness in post-trial motions and on appeal if necessary,” said Lou Lupin, executive vice president and general counsel, QUALCOMM.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2007 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company’s ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year ended September 24, 2006, and most recent Form 10-Q.
###
QUALCOMM is a registered trademark of QUALCOMM Incorporated. All other trademarks are the property of their respective owners.
QUALCOMM Contacts:
Emily Kilpatrick, Corporate Communications
Phone: 1-858-845-5959
Email: corpcomm@qualcomm.com
John Gilbert, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com
Good News for Qualcomm, See link:
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_Q/threadview?m=tm&bn=14982&tid=...
China Picks WCDMA, CDMA2000 as 3G Mobile Standards (Update2)
By Janet Ong
http://www.bloomberg.com/apps/news?pid=20601080&sid=a8NwYqsuyc3U&refer=asia
May 16 (Bloomberg) -- China selected two international technologies as its high-speed mobile-phone standards, placing equipment makers such as Ericsson AB closer to receiving contracts worth as much as $20 billion.
The government will adopt wideband code division multiple access, or WCDMA, and CDMA2000 technologies for the nation's third-generation mobile-phone networks, Wang Lijian, a Beijing- based spokesman at the Ministry of Information Industry, said by telephone today. China in January 2006 picked the domestically developed time division synchronous code division multiple access, or TD-SCDMA, standard as one of its 3G technologies.
Phone equipment makers such as Ericsson are awaiting China's issuance of 3G licenses to drive network spending in the world's biggest mobile-phone market as growth slows in Europe and the U.S. Wang today reiterated China doesn't have a timeframe for awarding the permits, after the government said 3G services will be available for the 2008 Olympics in Beijing.
``China needs to use WCDMA and CDMA if it wants to fully develop the potential of its mobile market, but the government's main focus will continue to be on the domestic TD-SCDMA,'' said Tiffany Feng, an analyst at Guotai Junan Securities Ltd. in Hong Kong. ``The readiness of TD-SCDMA will still be the biggest factor in deciding when 3G services start in China.''
The ministry set technical specifications for WCDMA and CDMA2000 in a statement posted on its Web site to ``provide more clarity'' for domestic and foreign companies to develop related products based on all three standards.
Global Standard
``WCDMA is the most widely accepted global standard and China can't afford not to have it,'' said Marvin Lo, an analyst at Daiwa Institute of Research in Hong Kong. ``The clock is ticking and China is getting closer to issuing 3G licenses.''
Riitta Maard, spokeswoman at Nokia Siemens Networks, said it's a ``good thing'' China has chosen a global standard, declining to comment further before confirming the news. Nokia Siemens is the phone equipment venture formed by Nokia Oyj, the world's largest handset maker, and Siemens AG last month.
Aase Lindskog, a spokeswoman at Ericsson, the world's largest maker of wireless network equipment, declined to comment before receiving confirmation of the Chinese decision.
3G Contracts
China's telephone carriers may spend 150 billion yuan ($20 billion) to build 3G mobile networks, according to Francis Cheung, head of Asian telecommunications research at CLSA Ltd. in Hong Kong.
The nation's six telecommunication operators, as well as equipment suppliers, have taken part in trials for all three standards since June 2001, the ministry said in the statement.
ZTE Corp., China's biggest publicly listed telephone equipment maker, last month won orders from China Mobile Communications Corp. to build networks based on TD-SCDMA. ZTE makes gear for all three mobile standards.
TD Tech, a venture between Siemens Communications Group and closely held Huawei Technologies Co., China's largest phone equipment maker, also won some orders from China Mobile. Huawei makes equipment based on WCDMA and CDMA2000.
The number of mobile-phone subscribers in China rose 17 percent from a year earlier to 480.7 million at the end of March. About 66 percent were subscribers of China Mobile Ltd., the world's largest wireless operator by users and a unit of China Mobile Communications. The remainder are customers of China Unicom Ltd.
Third-generation technology offers better reception, faster access to Internet, and services such as video conferencing.
San Diego-based Qualcomm Inc. is the dominant manufacturer of chipsets for CDMA2000 mobile phones and also makes processors for WCDMA. Dallas-based Texas Instruments Inc., the world's biggest maker of cell-phone chips, is the leader in WCDMA.
To contact the reporters on this story: Janet Ong in Beijing at jong3@bloomberg.net
Last Updated: May 16, 2007 07:31 EDT
Nordisk Mobiltelefon Selects Brightpoint to Provide Integrated Logistic Services
April 18, 2007 08:30 AM Eastern Daylight Time
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070418005....
PLAINFIELD, Ind.--(BUSINESS WIRE)--Brightpoint, Inc. (NASDAQ:CELL) today announced that its subsidiary, Brightpoint Sweden AB ("Brightpoint") has reached an agreement with Nordisk Mobiltelefon AB (“NMT”), a mobile communications operator licensed in Sweden, Norway and Denmark. Pursuant to the agreement, Brightpoint will provide NMT with a full range of integrated logistics services such as Inventory management, Order processing and distribution, Configuration, kitting and preparation, E-commerce, hosting and developing web shop, Reverse Logistics and End user help desk management for their mobile broadband products.
About NMT:
Nordisk Mobiltelefon is a mobile communications operator with an objective to provide private- and business users with advanced mobile telecommunications- and broadband services in combination with nationwide coverage. The company is currently deploying cellular networks in Norway, Sweden and Denmark. The company is combining the world leading 3G technology, CDMA2000, with the superior coverage obtained by the 450MHz band. The company operates under the brand ICE in Norway and Nordisk Mobiltelefon in Sweden and Denmark. The largest owners of Nordisk Mobiltelefon are the original founders, Orkla, Qualcomm and Siminn (Iceland Telecom).
About Brightpoint
Brightpoint, Inc. (NASDAQ:CELL) is a global leader in the distribution of wireless devices and in providing customized logistic services to the wireless industry. In 2006, Brightpoint handled 53.5 million wireless devices globally. Brightpoint's innovative services include distribution, channel development, fulfillment, product customization, eBusiness solutions, and other outsourced services that integrate seamlessly with its customers. Brightpoint's effective and efficient platform allows its customers to benefit from quickly deployed, flexible, and cost effective solutions. The company has approximately 2,100 employees in 15 countries. Revenue in 2006 was $2.4 billion and net income was $35.6 million. Additional information about Brightpoint can be found on its website at www.brightpoint.com, or by calling its toll-free Information and Investor Relations line at 877-IIR-CELL (877-447-2355).
Certain information in this press release may contain forward-looking statements regarding future events or the future performance of Brightpoint. These statements are only predictions and actual events or results may differ materially. Please refer to the documents Brightpoint files, from time to time, with the Securities and Exchange Commission; including, Brightpoint's most recent Form 10-K and Form 10-Q and Exhibit 99.1, thereto. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in or implied by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date these statements were made. Brightpoint undertakes no obligation to update any forward-looking statements contained in this press release.
Contacts
Brightpoint, Inc.
Anurag Gupta, 317-707-2355
or
Brightpoint Europe
Magnus Coxner, +46 31 645731
OR
Nordisk Mobiltelefon AB
Per Månsson, CEO, +46 735 303 633
How about HSDPA? How many compnies can produce a chip containing HSDPA?
Eric, thanks for the info.
Enough of waiting: Nokia's N95 hits the stores
30/03/2007
After waiting for what seems like donkey years, we finally get some love from Nokia's N95.
http://asia.cnet.com/reviews/mobilephones/ontheradar/0,39050922,62001338,00.htm
They say good things come to those who wait. Well, Nokia has finally announced that the highly anticipated N95 will be available from tomorrow. We're still not quite convinced why the Finnish company labels the N95 a "multimedia computer" but, hey, if it gives us 3G, HSDPA, Wi-Fi, integrated GPS and a 5-megapixel camera in one compact size, we're pretty much sold. What's more the unit comes in two colors (Deep plum and Sand) and is bundled with a 2GB microSD card.
A review unit is with us now and we'll be right back with our first impressions after the weekend.
Can anybody tell what kind of chipset included in Nokia N95? In the Nokia N95, Nokia has added a five-megapixel camera, Wi-Fi and GPS in a single product for the first time.
Zacks Bull and Bear of the Day Highlights: SINA Corp., Whole Foods, Qualcomm and Buckeye Partners
Wednesday January 31, 6:00 am ET
http://biz.yahoo.com/bw/070131/20070131005113.html?.v=1
Snip:
Analyst Blog:
We maintain our Buy recommendation and raise our target price for Qualcomm (Nasdaq: QCOM - News), a leading developer of digital wireless chipsets based on CDMA (code division multiple access) technology. The company's fundamentals remain strong as robust wireless industry growth and new service initiatives, such as mobile media and 3G (third generation) technologies, drive healthy sales. The company also generates nearly 33% of sales from recurring royalty income related to intellectual property licensing. Although the company is facing royalty related litigation issues with some of its large customers, we believe continued strength in the 3G wireless market, coupled with superior technology and a cash intensive balance sheet, support the long-term growth prospects of the company. QCOM has given guidance that it will be able to maintain a high rate of average selling price despite facing increased competition.
Try this link:
http://www.redorbit.com/news/technology/801216/qualcomm_nokia_will_make_up_eventually_according_to_a...
Qualcomm, Nokia Will Make Up Eventually, According to Analyst
Qualcomm, Nokia Will Make Up Eventually, According to Analyst
http://www.redorbit.com/news/technology/801216/qualcomm_nokia_will_make_up
Qualcomm's Jacobs Says TV on Handsets to Be `Big' (Update2)
By Peter J. Brennan and Fred Fishkin
http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=QCOM:US&sid=anOw6HCq...
Jan. 8 (Bloomberg) -- Qualcomm Inc., the world's second- biggest maker of chips that run cellular phones, predicted television on handsets will be ``big business.''
``Once you see mobile TV on a handset, you realize it's very compelling,'' said Chief Executive Officer Paul Jacobs said today in an interview at the Consumer Electronics Show in Las Vegas. ``It looks like it's going to take off.''
Verizon Wireless, the second-biggest U.S. mobile phone carrier, said yesterday it would use Qualcomm's MediaFLO service to broadcast shows from the CBS, NBC and Fox TV networks to mobile phones. If Qualcomm can sign an agreement with another large carrier, MediaFLO could reach as much as half of the U.S.
Qualcomm will generate revenue by making and licensing chipsets and broadcasting the shows, American Technology Research analyst Albert Lin said in a Jan. 4 note to investors.
``The high margin and high leverage aspects of the MediaFLO revenue opportunity will likely create a premium'' on Qualcomm share price, Lin said in his note. ``Existing services in the marketplace will begin to immediately suffer churn and/or revenue deceleration as their services may have to be discounted by over 50 percent to retain subscriber interest.''
Verizon is the first U.S. wireless carrier to sign on to MediaFLO. AT&T Inc.'s Cingular Wireless, the largest U.S. carrier, and third place Sprint Nextel Corp. offer video streamed over their own networks.
Streamed Video
Streamed video using regular data networks provides up to 15 frames a second. MediaFLO promises 25 to 30 frames a second and channel-switching times of less than two seconds, which Qualcomm said is similar to regular TV.
Shares of San Diego-based Qualcomm fell 43 cents to $38.26 at 4 p.m. New York time in Nasdaq Stock Market composite trading. They dropped 12 percent last year. Texas Instruments Inc. is the largest maker of chips for handsets.
Qualcomm is spending $800 million to develop MediaFLO. The company has held talks with Cingular Wireless, Sprint and T- Mobile USA Inc., Sanjay Jha, president of Qualcomm's CDMA Technologies Group, said at a conference on Dec. 7.
``There will be another carrier besides Verizon,'' Gina Lombardi, president of Qualcomm's MediaFLO USA, said in an interview on Dec. 14.
MediaFLO will operate like a cable company, providing news, sports, cartoons and prime-time shows, Lombardi said.
Bedminster, New Jersey-based Verizon Wireless, which is owned by New York-based Verizon Communications Inc. and Newbury, England-based Vodafone Group Plc, plans to introduce MediaFLO this quarter.
Crown Castle International Corp., the second-biggest owner of U.S. wireless phone towers, said today it is testing broadcasting TV to mobile phones in New York City using a competing technology called DVB-H that Texas Instruments is promoting.
To contact the reporters on this story: Peter J. Brennan in Los Angeles at Pbrennan3@bloomberg.net ; Fred Fishkin in Las Vegas at ffishkin@bloomberg.net .
Last Updated: January 8, 2007 16:41 EST
Analysts Comment on QUALCOMM (QCOM) After Lowered EPS Guidance
12-22-2006 08:57:34 AM
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CONTRIBUTOR http://notablecalls.blogspot.com
Several firms are commenting on QUALCOMM (NASDAQ: QCOM) after the co lowered their EPS guidance overnight:
- Morgan Stanley notes the EPS shortfall is being driven by higher legal expenses and bad debt reserves related to the Pantech Group in South Korea. Firm notes Pantech Group (Pantech, Curitel, and SK Teletech) shipped 4.1MM handsets in the 1H C2006, split between the CDMA and GSM/GPRS market.
With firm's revenue estimate already inline with the new guidance but with their chipset unit estimate slightly below, it suggests a mix shift to lower end phones (which will impact royalties in subsequent quarters) and/or lower sales of chipsets for basestations. CDMA+WCDMA handset shipments in the September quarter (royalties are recognized in arrears) are now expected to be 75-76MM units with a blended ASP of $210 versus firm's estimate of 75MM units and a blended ASP of $209 per unit.
Firm expects to update their estimates when they obtain further visibility into the March quarter. However they estimate there is $0.01 risk to adjusted EPS estimate of $0.43. Firm's F2007 EPS estimate of $1.77 also remains unchanged. They expect QCOM will face a modest amount of selling pressure on the news, as many investors remain hopeful for a favorable outcome of the ongoing licensing dispute with Nokia.
- Jeffco notes QCOM remains one of their best pure play picks into the 3G migration trend. As strong proxy for the broader wireless handset market, QCOM the metics for CY07 remains strong despite the on-going Nokia battle, and supports firm's positive stance on QCOM's position. There has been much pessimism about weaker handset demand, this is a positive datapoint for the sector. Firm believes that visibility should start improving in 2007 with potential resolution or settlement of many of the legal issues.
Maintains Buy and $54 PT.
- Goldman Sachs notes demand fundamentals appear positive which bodes well for the long term outlook for the shares. However, legal issues are likely to continue to dominate in the near-term, negatively impacting sentiment and limiting any near-term earnings upside. Nevertheless, the firm continues to believe that Investors with a long time horizon of 12 months or more will be paid to wait out the near-term impact of legal concerns. Fundamental demand remains healthy as demand for 3G continues to improve and 2G markets still have growth left in them, as QUALCOMM's chip segment continues to integrate in additional features and drive down prices with new chip designs. They see 2 potential upside catalysts: 1) the recent 3G chip win at Motorola could drive upside to 2008 estimates. 2) Qualcomm will be a key beneficiary of China's eventual move to 3G.
Firm is lowering their 12 month price target to $55 from $58.20. Maintains Buy.
Notablecalls: JPM is downgrading their rating to Underweight from Neutral saying that not only do these legal costs appear here to stay for some time, they suspect they could increase even further in the coming months. I expect QCOM to trade down following the downgrade as JPM may indeed be right. On the other hand, I see the stock as a bounce candidate, possibly below the $37 level.
Qualcomm: ITC patent ruling not seen disrupting business
Last Update: 1:27 PM ET Dec 11, 2006
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7bF8D2F7E1-281F-46E1-B0EC-4C5FF43B4CCB%7d&....
SAN FRANCISCO (MarketWatch) -- Qualcomm Inc. (QCOM : QUALCOMM Incorporated (QCOM38.98, -0.56, -1.4%) said Monday the International Trade Commission's order regarding patent infringement claims by Broadcom Corp. isn't expected to have a "disruptive effect" on its business. Qualcomm said the ITC has decided not to review the Administrative Law Judge's initial determination that the company hasn't infringed two of three Broadcom patents. "We are pleased with the ITC's decision to leave undisturbed the ALJ's conclusions that we have not infringed two of the three patents," said Louis Lupin, Qualcomm's general counsel, in a statement. Earlier today, Broadcom said the ITC has upheld an initial determination that Qualcomm infringed on five claims of one patent held by Broadcom. The ITC will consider further briefing on the issue of remedies, the companies said.
7.2Mbps HSDPA service to hit Cingular next year
Posted Dec 8th 2006 11:26AM by Darren Murph
Filed under: Cellphones, Wireless
http://www.engadget.com/2006/12/08/7-2mbps-hsdpa-service-to-hit-cingular-next-year/
There's always thrilling news coming from ITU Telecom World in Hong Kong for those residing overseas, but this time it's the Americans rejoicing. A Qualcomm official has stated that USA's own Cingular Wireless "is set to launch" a 7.2Mbps HSDPA service this coming January (at the earliest). While we're not sure if that figure is theoretical or otherwise, nor do we know its complementary upload speed, we've found that the service will hit speed-hungry laptops equipped with PCMCIA slots real soon. While upping the speeds of HSDPA services seems to be all the rage these days, we're glad to see such a substantial jump happening right here. Notably, Cingular probably won't be alone in such launches come 2007, as Australian service provider Telstra is already planning to hit its customers up with the same luxury, while a spokesperson from SK Telecom boasted that its networks were "already designed" to support the blazing speeds, insinuating that a boost in service could be just around the bend. Per usual, we've got no details as to just how much coinage this speed will demand, nor any way to tell if this January date will actually stick, but we've got just about a month until we know for certain.
Qualcomm makes move on wireless firms
by Nick Flaherty
Friday 8 December 2006
http://www.electronicsweekly.com/Articles/2006/12/08/40330/Qualcomm+makes+move+on+wireless+firms.htm
US fabless chip maker Qualcomm is taking on Broadcom, Marvell and STMicroelectronics in the consumer electronics equipment market by buying companies that focus on Bluetooth and wireless LAN.
It has bought Airgo, a supplier of wireless LAN technology that uses multiple antennas for the 802.11n standard, and the Bluetooth operation of RF Micro (formerly Silicon Wave). Both deals are due to complete by the end of December.
These technologies will be used with both Qualcomm's CDMA chipsets for mobile phones but also for the new consumer part, Snapdragon, said Luis Pineda, senior vice-president of marketing and product management at Qualcomm Communications Technology.
“Certainly Broadcom and Marvell are players in the market but not on a par with Qualcomm’s wireless customer base,” he said. “What it brings to us is new channels, new customers and the ability to integrate this into our chipsets. Wireless LAN with 3G gives us broadband on the go.”
Airgo in Silicon Valley has 120 people, and Qualcomm has already re-branded Airgo’s latest 802.11n 2.0 specification MIMO wireless LAN technology as its own. The SiliconWave group already worked with Qualcomm and has 60 engineers in Qualcomm’s home town of San Diego. Qualcomm also works with Cambridge Silicon Radio on the radio side and will continue to do so, said Pineda.
Snapdragon aims to add connectivity to consumer devices, so will include UMTS 3G, broadcast TV reception, WiFi wireless LAN and Bluetooth, based around a 1GHz customised ARM-core designed by Qualcomm called Scorpion. This is paired with a 128 bit single-instruction, multiple-data capability and a 600MHz digital signal processor to accelerate multimedia applications, and the first customer is Samsung.