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Technology Stocks : Interdigital Communication(IDCC)
IDCC 345.06-2.7%10:37 AM EST

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To: data_rox who wrote (4483)7/27/2000 12:18:10 AM
From: w molloy  Read Replies (1) of 5195
 
>> do you think they'll be paying royalties or will it be pushed to the subscriber devices to pay IPR holders?

Well - some ASIC manufacturers would like to participate in a patent pooling process, with the royalty payments made by the end-user, the handset OEM.
Those without IPR would like the royalty burden to be applied to the OEM too.

But others, especially those that hold a big chunk of essential IPR, would like a direct royalty payment from the ASIC producers AND the handset OEM's

I think that a patent pool will prevail in WCDMA.
It is non exclusionary - the lack of IPR does not prevent
an ASIC company from entering the market.

In theory, the OEM could get a better deal as competitive pressures force the many ASIC manufacturers to drive prices down. This ASIC vendor with IPR revenue will have a favorable competitive advantage over the non- IPR ASIC vendor. The non- IPR ASIC vendor will have to compete in other areas, such as FAB efficiency; level of integration of the chipset; chip specification etc.
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