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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 177.78-2.2%Jan 9 9:30 AM EST
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To: foundation who wrote (2655)9/1/2000 11:06:55 AM
From: engineer  Read Replies (1) of 197154
 
a few comments

First the Korean press has pretty much been less than truthful in how they report in order to get what they want. Notice that they reported that the Qualcomm royalty is troubling, not the MOT and LU added on royalty. this is clearly a FUD biased report in order to beg off the Q royalties. I would not be surprised if MOT and LU were actually doing this to get lower royalties worldwide on Q's CDMA. Also not sure if this is about IMT-2000 or IS-95 or if this is projection from the Koreans about what "could" happen.

Second, IMHO, MOT and LU have a serious "eminent domain" problem here for any technology used today such as IS-95. If they had not participated in the mkt all these years, then PERHAPS they could claim that they had no knowledge of people using their patents and then when found out, they asked for the royalties. But they have been particiapting in this market for the last 6 years just like everyone else and they have not once made notice of this additional royalty rate. Note that in Q's case, they made notice of it from the very start and have promoted and sold the tehcnology from day one wiht the patents and roylaties identified. In my opinion, for is-95, they would have clearly entrapped the market and enticed mfgs into these technologies with the thought that they would charge royaties in the future but never mentioned this or demanded payments. I am not aware of any agreements that they made the Koreans sign which stated that MOT held all these patents and that they would not charge royalties until some time in the future.

This is clearly aimed at the Koreans who it looks like will get a giant market share of the China market. I would not be surprised if the Koreans sued MOT and LU in open court over the royalty issue.

I cannot tell if the article is aimed at the IMT-2000 technology stating that they don;t like the royalty rates on this upcoming technology or if this is aimed at the IS-95 and 1x technology and will apply to all the phones sold in the US. If it is for IMT-2000, then this is a big plus as it says that Q gets royalties and the koreans are admitting this in press that they have to pay 5% on this as well, so it is like WCDMA, Q gets roylaties in any case.

Very strange article in any case.
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