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Technology Stocks : Qualcomm(QCOM) -> SpinCo

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To: w molloy who wrote (4)7/26/2000 4:41:10 PM
From: waverider  Read Replies (2) of 172
 
Would someone help me out on this...

So the spin off company makes chips and sells them to other companies for their phones, whatever.
QCOM has the IP and the chip buyers send QCOM a check as well for the royalties? I get this because the spin off doesn't pay royalties to QCOM because they are sharing the patents...that's what Jacobs said, right?
The spin off makes all sorts of cross licensing deals to make multimode chips, whatever...they sell them, pay off some of the GSM/WCDMA patent people and QCOM gets a check from WHO for their IP royalties?

>>>>(2) Eliminates Customer/Licensee Conflicts. As both a licensor and ASIC
supplier, QCOM's two businesses are also in conflict. As more independent
entities, this potential conflict is reduced. Customers can go to Spinco for
chips and to Qualcomm for royalties.<<<<

Why would people want to go to Qualcomm for royalties? Hmm...poorly worded, but I must admit this story is beginning to confuse me.

Rick
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