If Nokia has devoted this much money and effort to resist paying IDCC some .3% royalty for GSM, which will fade out shortly when GSM/3G dual mode dominates the market place.. Nokia pays no other Company for GSM technology other than IDCC.Can you imagine the Magnitude of their War Chest to fight paying IDCC some 1% for 3G technology that they allegedly pay Qualcomm some 5% for? IMO:The sum of money that IDCC is seeking for its GSM technology is Petty Cash Draw Money for Nokia.. compared to their 3G Royalty exposure..Surely they are aware that Ericy, Samsung or Lucent can spill a container of coffee over their 3G strategy plans..Some how I believe Nokia is trialing their new Musical show in Biloxi, Miss. in IDCC's Theatre, prior to taking it to the Big Time , Broadway ,AKA Qualcomm.!
Mschere.
If Nokia can't get the court to vacate the award, it would appear their arbitration-gamble could well exceed $300 million, before offsets for delays in paying.
Take a crack at these "round number" estimates:
Basic award. $210 million.
Lost discount on "Period #1: $20 million.
Lost discount on "Period #2: $20 million.
Interest (5% P.A.) according to PLA for 2002/2005: (20%) $50 million.
Additional interest assessed (2.5% P.A.) for 2002/2004: $19 million.
Total $319 million.
Total: Lost discounts, interest and additional interest: $109 million.
I'm sure I missed something. But even if Nokia privately concedes that it owed the $210 million, try tacking on several millions more for arbitration fees, fighting the confirmation, and a 13 point drop in the Euro, and we're talkin' some real bucks.
