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Technology Stocks : Interdigital Communication(IDCC)
IDCC 348.69+0.7%3:59 PM EST

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To: Bux who wrote (3438)1/19/2000 7:03:00 PM
From: Jim Lurgio  Read Replies (1) of 5195
 
Bux, Just what makes you think that IDC wants or should get royalties from Qualcomm? You're reading to many posts. IDC doesn't claim they say they have patents they stated they have patents that are essential for all of the 5 standards. Although they say these patents are essential that still doesn?t mean anyone must use them. It is also fact that the Q has essential patents for CDMA 2000 but not all patents will be necessary to license if there's better ones available.

The use of patents for 3-G is going to be much different that 2-G. From what I have read for the 2-G systems companies bundled patents together and the licensees were made to license for the whole bundle. The new 3-G standards are supposed to allow what they called cherry picking of patents. Therefore anyone who is interested in say CDMA2000 can choose to use any of the patents that the ITU has approved for that standard. Patents that received approval for use in any standard must also be free of any IPR dispute.

Having said that then lets assume someone wants to build this CDMA2000 system. After reviewing the patents available lets say they use 8 of Qualcomm's and two of IDC's. Q or IDC would owe each other nothing and the fees would come from the builder of the system. I do agree that Qualcomm most likely has a complete offering for CDMA 2000
but any company that has a legitimate patent that?s approved by the ITU for that standard is to be considered competition. You may very well see IPR for CDMA2000 being submitted by a lot more companies than Interdigital.

Same theory applies to the W-CDMA systems. Although Qualcomm may have a piece of the pie they won't have the majority. The interface between GSM/TDMA will be the most lucrative IPR involved and many feel IDC has that interface.

Honestly speaking Bux there?s going to be a lot of players in 3-G and some will receive more than others. To ignore the fact that IDC will have IPR in all five standards and think there not part of the game isn't living in the real world.

By the way I thought it was and excellent idea for the Q to dump both their infrastructure business as well as the handset division. Not because they were both failures but because companies that don't manufacture will get higher royalties according to the ITU standards for 3-G.
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