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Technology Stocks : Interdigital Communication(IDCC)
IDCC 348.69+0.8%Nov 14 9:30 AM EST
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To: Bill Dalglish who wrote (4204)4/28/2000 10:23:00 PM
From: JP Sullivan  Read Replies (1) of 5195
 
Bill: QCOM has stated that it would receive royalties for WCDMA. However, unlike cdma2000, whose IPR QCOM appears to own entirely, WCDMA is the sum of the efforts of many contributors, IDCC being one of them. The IPR for WCDMA is therefore owned by many parties. Wouldn't any royalty paid to licence WCDMA be divided up among the respective IPR owners? Assuming this to be true, wouldn't QCOM be entitled to only a portion of the royalty paid per phone/chip (the other portions paid out to the other IPR holders) as opposed to the entire sum, which it would otherwise receive if the phone/chip were using cdma2000?

Furthermore, if QCOM wanted to manufacture ASICs using WCDMA, wouldn't it then have to pay royalties to the other owners of the IPR? Might this situation not result in a significant offset against any royalties QCOM would receive for WCDMA?

I wonder if the points I have raised are relevant, or am I barking up the wrong tree. I would appreciate your insight into this.

WE
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