Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 176.67

+1.6%

Nov 12 3:59 PM EST

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To: Uncle Frank who wrote (96713)	4/3/2001 7:39:35 PM
From: pcstel	Read Replies (4) of 152472

Uncle Frank... OK, I'll take a stab at it.. "Why would Matsushita sign a multi-million dollar license deal for QCOM's CDMA IPR, If they were going to pay and use IDCC's IPR for WCDMA.?" Matshushita signed an IPR agreement with Qualcomm because they needed (and still do) QCOM IPR for IS-95A,B,1X.. But, has the 3GPP worked around QCOM IPR by using the base CDMA IPR that QCOM licensed from IDCC years ago? After all.. That has been the 3GPP goal from the beginning.. Everyone said that QCOM royalties were "too high".. So instead of just adopting QCOM technology and methodologies.. The GSM mafia has set it's sights on "by-passing" QCOM on the road to 3G.. After all, Matshushita just signed one of the QCOM CDMA Modem card licenses in January of this year.. And QCOM's stance has been that W-CDMA and Q CDMA pay the same royalty rate.. So in two days you have had two announcements Infineon and IDCC Matshushita and IDCC Which tells me that they (the 3GPP) believe they have enough IPR to by-pass QCOM implementations.. So Infineon and Matsushita..(Which is probably just about to start shipping (payable royality) W-CDMA terminals to DoCoMo. If IDCC offered them a (lower) royalty vs. a 4%+QCOM royalty.. That would make prudent business sense to opt for an IDCC license.. So sure.. Matsushita still needs QCOM IPR for IS-95 derivative CDMA systems.. But, they opt for a lower royalty payment for the use of IDCC IPR for W-CDMA systems.. So like you said.. Hi Ho, Hi Ho.. It's off to court we go!! BUT, just the doubt that the 3GPP has in fact "By-passed" QCOM IPR on the road to 3G would inflict severe damage to QCOM equity value.. And don't forget. NOK said they were buying back stock for future acquisition's.. If it became known that IDCC along with the 3GPP could by-pass QCOM.. QCOM share price would reach a point where NOK could be in a position to just buy-out QCOM on the cheap.. And the press release about Matsushita is on Interdigital's web site.. So I don't think it is a rumor! And the press release emphasize's that this license is for, and I quote "to encourage the proliferation of W-CDMA technologies." Something to think about.. PCSTEL

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