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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 172.98+1.1%Jan 2 9:30 AM EST

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To: foundation who wrote (28778)11/12/2002 8:42:50 AM
From: iggyl   of 197074
 
Datang Vs Qualcomm for CDMA Patent

12 Nov 2002, 08:33 AM EST Msg. 107737 of 107737

CHINA, Nov 12, 2002 (SinoCast via COMTEX) -- Datang Telephone Corporation
recently asks Qualcomm to hold a negotiation to determine if its newest
self-designed 3G TD-SCDMA includes patent of Qualcomm or not.

Qualcomm has been holding the line that it owns the standard basic patent for
TC-SCDMA. Now, another two 3G standards (W-CDMA, CDMA2000) are also based on
Qualcomm's patent, which means Qualcomm is able to make 2%-6% of patent charge
for each 3G equipment.

Datang, the developer of TD-SCDMA, and its partner Siemens expressed that
Qualcomm's patent does not play a leading role in TD-SCDMA standard. But the
negotiation means Datang wants to seek compromise with Qualcomm, because the
Chinese Authorities previously once insisted that the TD-SCDMA's patent
completely belongs to Datang Telephone.

Siemens' attitude is very clear that TD-SCDMA so far has not adopted any patent
of Qualcomm, but it is possible to use it for commercial purpose in the future.

Datang is looking forward to the negotiation, but Qualcomm indicates that it has
not been informed by Datang about license of TD-SCDMA.

Analysts predict that TD-SCDMA's final market share may account for 10% to 50%,
and Qualcomm would charge USD 860,000 million to USD 1.4 billion from China's
market for its patent.

From Source: International Finance News page 8, Monday, November 11, 2002
info@SinoCast.Com

Copyright (C) 2002 SinoCast, All rights reserved

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Seems like if Datang still needs a license from Q for TD-SCDMA and given MII's grand ambitions for TD-SCDMA, Q may be holding a pretty nice trump card for negotiating.

iggy
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