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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Eric L who wrote (31041)	9/3/2000 9:12:52 PM
From: Art Bechhoefer	Read Replies (1) of 54805

The issue of whether QCOM already has a working model of a WCDMA chip has probably already been settled. The answer is yes. How do we know? Because, unless QCOM knew that it had a workable WCDMA chip, it would not be interested in creating a spinoff that could manufacture it and sell it to any company moving into this area. The whole purpose of the spinoff is to sell directly to manufacturers without those manufacturers having to worry about more royalties going to QUALCOMM. This would be done by cross licensing arrangement that would enable the new company to gain a foothold into GSM systems by making a chip that effectively upgrades GSM to the third generation WCDMA. Note that the new company, unnamed so far (how about Jacob's Ladder or Why Not the Best.com?) would not have use of all QUALCOMM patents but only certain essential ones. Art

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