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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 159.59-3.9%Nov 20 3:59 PM EST
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To: gdichaz who wrote (483)8/3/1999 7:25:00 PM
From: Clarksterh  Read Replies (5) of 13582
 
Chaz - Still not clear if MOT is licensed to sell ASICs to others. Thought I remembered that Gregg had said that MOTs license was limited to production for its own use.

Motorola is definitely allowed to manufacture ASIC's for sale to other handset manufacturers. The following is from the last 10K:

The Company has entered into royalty-bearing license arrangements
with DSP Communications, LSI Logic Corporation, VSLI Technology and PrairieComm, Inc. covering certain ASIC patents belonging to QUALCOMM. Pursuant to these arrangements, such parties are licensed to manufacture and sell ASICs to subscriber and infrastructure licensees of the Company. To date, most subscriber and infrastructure licensees have chosen to purchase their ASIC requirements from the Company to ensure timely access to latest generation technology. Under the terms of their agreements, Motorola and Lucent also have the right to manufacture and sell CDMA ASICs of their own design to licensees.

Note that there is an implication, although not an absolute statement, that if Motorola or Lucent make ASICs they owe no royalties to Qualcomm. When Qualcomm made the threat recently of withdrawing license privleges(sp?), I assumed that this was the primary target - Motorola has a much better agreement than most CDMAOne manufacturers.

Clark
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