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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 172.92+1.1%3:59 PM EST
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To: carranza2 who wrote (15317)9/28/2001 12:03:36 PM
From: Kayaker  Read Replies (1) of 197064
 
Pardon if already discussed. My understanding of the royalty rate choice for Korean licensees is this (from the Korean Govt' letter):

Qualcomm is asking local users of CDMA technology to accept either the "Korean rate" of 5.25 percent royalties for units that will be sold locally and 5.75 percent for exports, or the "Chinese rate" of 2.65 percent royalties for cellular phones for internal sales and 7 percent for those made for exports.

But, from Dr. J's letter he states something different:

In this case, if the Korean licensee accepts the lower royalty rate in China, it must also accept payment of the higher royalty rate for sales outside of China, as well as commit to purchase QUALCOMM's components.

In other words, I thought the Korean licensee alternative was to opt for the 2.65 rate for Korean sales (and the higher rate everywhere else), not for sales into China. ???
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