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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 173.89+1.7%11:38 AM EST

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To: Kayaker who wrote (15323)9/29/2001 8:40:31 PM
From: Kayaker  Read Replies (3) of 197060
 
I posted this the other day but no one commented on it. Any thoughts?

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.

Message 16426770

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.

Message 16419027

i.e., I thought the Korean licensee alternative was to opt for the 2.65 rate for sales in Korea and the higher rate everywhere else; Dr. J is saying the Korean licensees could opt for the 2.65 rate for sales in China and the higher rate everywhere else.
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