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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 157.05

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To: Ramsey Su who wrote (5543)	12/17/2000 12:57:32 PM
From: slacker711	Read Replies (2) of 197300

that article is a great example of why I think WCDMA may be years from getting off the ground. I'm not sure that I agree with you....the royalty arrangement described by the article is completely voluntary. I dont see any way in which Qualcomm can be "forced" to participate. Also, the majority of the companies who are likely to participate in the group have already licensed W-CDMA from Qualcomm. Actually, I dont think the patent group is a bad thing for Qualcomm...the existence of this group will allow SpinCo to gain access to the W-CDMA patents that they need in one fell swoop....rather than individual cross-license deals. At this moment, I suppose no one has really challenged QCOM's position in the market by introducing unlicensed CDMA products, regardless of which flavor. I just dont see who is going to do this....the most likely candidate would be Nokia, and it would be absolutely disastrous for them. With the number of licensees that Qualcomm has lined up, they might even be able to get an injunction against Nokia. It is a no-win situation for them...the upside isnt worth the risk. The one fear that I have is that I dont understand the mechanism by which Qualcomm is going to assign patents to SpinCo. For example, when Ericsson licensed W-CDMA they gained access to ALL of Q's patents. Why should they have to trade IPR for a patent which they already had licensed? If we take the position to a ridiculous extreme....Qualcomm might have 10 absolutely essential patents for all forms of CDMA. Why wouldnt they assign each one to a separate shell company and attempt to collect 5% for each patent? Unfortunately, I have to take Q's management on faith since I doubt we will ever get a real explanation of how the licenses work. Slacker

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