QUALCOMM'S INTELLECTUAL PROPERTY ARRANGEMENTS WITH SPINCO
(from edgar-online.com
<< In return for seeding negotiable IPR to SpinCo, QCOM expects to cherry pick new SpinCo patents and license them to third parties. There doesn't appear to be a $$$ based royalty stream between SpinCo and QCOM
What isn't clear is whether an OEM handset manufacturer will need to pay a royalty to QCOM if it buys SpinCo ASICS >>
To give Spinco the ability to negotiate cross-licenses, gain reasonable access to third party intellectual property and defend itself as may be necessary, QUALCOMM will assign to Spinco a portion of its patents and
patent applications that are essential and/or useful to implement existing and proposed CDMA standards.
Following the spin-off, QUALCOMM's intellectual
property portfolio will consist of more than 1,000 U.S. patents and patent applications, substantially all of which are essential to or useful in CDMA wireless applications and some of which have applicability in other wireless
applications (such as position location technology).
Because of the terms of QUALCOMM's license agreements and due to the overall breadth and coverage of its intellectual property portfolio, QUALCOMM believes that assignment of
patents and patent applications to Spinco will not compromise QUALCOMM's existing or future licensing business, including the royalties payable to the Company.
In addition to filing for patent protection in the United States, QUALCOMM has and will continue to actively file for patent protection around the world and has received CDMA patents with broad coverage throughout most of world, including China, Japan, Korea, Europe, Brazil, North America and elsewhere.
QUALCOMM's research and development team has a strong and proven track record of innovation in wireless technologies. QUALCOMM intends to use its substantial engineering resources and expertise to develop new technologies, applications and services and make them available to licensees to help grow the wireless market and generate new or expanded licensing opportunities. In addition to continuing to develop its own intellectual property portfolio, QUALCOMM will have the right each year to select and receive ownership of a portion of Spinco's patent applications.
As a result of this relationship with Spinco and QUALCOMM's own research and development efforts, QUALCOMM expects to be able to extend the term of its royalty-bearing licenses and create new licensing opportunities. |
