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Technology Stocks : Qualcomm(QCOM) -> SpinCo
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To: w molloy who started this subject7/29/2000 9:43:02 PM
From: quartersawyer   of 172
 
Page 73..."we will be required to pay to Qualcomm... an amount equal to the royalty reduction".
This sounds specifically aimed toward Motorola. Spinco negotiations with mot would account for this potential cost to Spinco. I'd guess that mot was given an opportunity to include DS in its amended license, failed to take it, and will have to pay for their continuous adversarial stance if they need Spinco.

MAKE-WHOLE REIMBURSEMENT. If and to the extent that, as of the date of the
separation, QUALCOMM has any arrangements with its licensees permitting such
licensees to reduce the net amount of royalties these licensees otherwise would
be required to pay QUALCOMM because they purchase our products, we will be
required to pay to QUALCOMM, under specified circumstances, an amount equal to
the royalty reduction.
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