Two Gorillas: QCON and SPINCO
DS, you were right the first time, there are two Gorillas. What is to discuss?
Given a sound strategy for patent transfer, if QCOM is a Gorilla, then SPINCO must be a Gorilla. Just as QCOM is a Gorilla because it has a proprietary architecture in patented CDMA technology with high switching costs to competitors' analog, GSM, TDMA architectures because of competitor's inferior features, limited capacity, hard-handoffs, lower data rates, etc., then so is SPINCO.
This is the strategic plan of QCOM. In addition, QCOM will seek to extend its reach into new areas where it will dominate through its newer IPR.
SPINCO has the same ability as before to shake the value chain by executing its road map that is directed toward ever increasing ASICS functionality and more inclusive features that QCOM had when SPINCO/QCT was a division.
Moreover, we know now that CDMA/GSM/TDMA multimodal ASICS are in the plan. SPINCO will still be producing 6th generation chips as their competitors try to get first or second generations chips to function on a CDMA network. They have the software and the know-how, plus relevant essential and enabling patents. This is proprietary architecture with high switching costs that can continue to shake the value chain.
Cross-licensing does not provide the know-how or the software. It changes nothing. QCOM still gets royalties; SPINCO still controls the value chain of ASICS.
I hope this helps. DS, you have done us all a wonderful service through your posts.
Don |
