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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 173.05-2.7%9:56 AM EST
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To: Kent Rattey who wrote (5250)12/5/2000 2:22:56 AM
From: Mike Wilhelm  Read Replies (1) of 197157
 
Kent,

The last paragraph of the article is quite interesting:

"We are confident that our CDMA chips will compete very well against any other company's in terms of functionality, quality and on time delivery," said Qualcomm spokesperson Christine Trimble. "Qualcomm would get royalties from the end user on CDMA chips sold by TI. We think the cross-licensing agreement will be very beneficial for the adoption of CDMA."

So Q will collect their royalties from TI's customers, similar to the MOT arrangement. It looks to me like the deal with TI is a 3G license agreement in disguise; TI doesn't pay any cash but puts up its patents instead of the normal upfront fee and shifts the ongoing royalty payment responsibility to its customers.

Mike
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