Qualcomm Inc (QCOM)

[slacker711]

Double Dipping

however, that is only to prevent double dipping on the same customer. That is not the same as a royalty discount. I realize we might be splitting hairs here, but isn't that why any contract is couched in the necessary verbage to prevent running afoul.

If preventing double dipping is the goal then I would assume that Qualcomm nets out the chipset price when handset vendors use other merchant solutions. Since I have never heard Q even hint that this is the case, I dont think Q is really trying to prevent double dipping.

BTW, I dont see this as a huge deal. Worst comes to worst, you allow the netting for other merchant chipset vendors. This isnt like Microsoft where changing the practice would substantially harm the company.

Slacker