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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 174.01-0.3%Nov 14 9:30 AM EST
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To: Harvey Rosenkrantz who wrote (7)7/22/1999 2:22:00 AM
From: Maurice Winn  Read Replies (2) of 13582
 
A Qualcomm spokesperson said that the legal action against Motorola was essentially a shot across Motorola bows because Motorola continues with their unreasonable litigation so Q! is seeking dissolution of the 1990 agreements. JGoren is right, it was "...understand the downside...".

Qualcomm acts in good faith in commercial agreements and will use legal action to defend their business when attacked. There have been several attacks, none of them successful though they have extracted some minor payoffs, such as the few million Interdigital gained. Ericy probably gained a bit [very little from the outcome] of negotiating leverage with their unsuccessful legal action.

The outcome seems likely to be a stand down of both actions. Then again, Qualcomm could benefit hugely by Motorola breaching the agreement of 1990 and thus releasing Q! from the absurdly low royalty rates of the time and even a royalty sharing arrangement. Motorola will have to pay the 'fair and equitable' rates that cdmaOne and cdma2000 licensees are having to pay. Namely, something around 5%.

Mqurice

PS: Ramsey started a thread way back at the beginning of 1996 but he was talking to himself and it died. I started "CDMA The Market Test" which ran for 9 months. "Coming into buy range" had a long and reputable innings.

Good luck with the S&P500 thread Ramsey. Q! has come a long way. But the fun has just begun.
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