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Monday, March 19, 2007 10:33:23 PM
If I'm not mistaken when a company belongs to the standards setting process they must license their patents. Therefore, I see no reason why Q could not ask NOK for a FRANDLY license completely seperate from Q's own negotiations with NOK. Does anyone know how many licenses they have signed for their patents and at what rate? We know Q has many licensee's at their standard rate. Others have suggested that besides gaining a reduced rate from Q NOK may also be attempting to breath life into their own licensing program. If they can get value from Q they will then be able to corral the rest of the players into paying too. Would Q consider licensing NOK's patents even if they don't use them in order to pass them through to their own licensee's? I know NOK does not like to offer pass through rights but who knows what Q is asking.
Also, given NOK's industry leading margins how will the transition to 3G affect their margins relative to the other top handset manufacturers? For example assume the other players have an even split across their product lines with one half paying royalties to Q while NOK has an 85 to 15 proportion. Therefore as their products become more subject to royalties their margins should move closer to the rest of the industry. By moving closer I of course mean decline. TIA.
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