Qualcomm(QCOM) -> SpinCo Message Board

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Technology Stocks : Qualcomm(QCOM) -> SpinCo

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To: w molloy who wrote (22)	7/27/2000 7:43:08 AM
From: Randall Knight	Read Replies (2) of 172

If Samdung buy SpinCo chips, will they have to pony up additional money to QCOM? No. The royalty arrangement with Samsung is the same after the spin off as it is now. I'm not sure how the payments will be made but the amount is the same because Samsung is a 3G licensee. Also, I believe that the only thing Samsung pays royalties on are handset sales. The ASIC royalties are handled by Spinco. If MOTNOK make ASIC's will they have to pay QCOM too, even if they are part of the WCDMA pool? Yes (no) and yes. Mot and Nok both have licenses for 2G and Mot for 3G CDMA2000 (I think). So, for 2G the royalties are the same. If, however, both companies want to produce ASICs and handsets for W-CDMA (and CDMA2000 in NOK's case) they will have to negotiate licenses with both Spinco and QCOM. In the case of Spinco, the strategy is to cross license GSM IPR with Spinco's CDMA IPR so that would be a wash. However, the IPR royalty rate with QCOM would be the same as always. It's a beautiful thing.

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