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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 179.02+3.7%3:59 PM EST

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To: Art Bechhoefer who wrote (131675)11/4/2003 6:44:08 AM
From: Cooters  Read Replies (2) of 152472
 
In this case, of course China will save on royalty fees because anything using TD-SCDMA will pay royalties to QUALCOMM at the lower domestic rate negotiated with QUALCOMM (around 2.5 percent instead of the usual approx. 5 percent).

Not that I am aware of. I don't remember this agreement applying to anything but CDMA2000, plus it included sole sourcing of chipsets to QCOM. There is no such agreement for TD-SCDMA.

As for lower royalties, I am sure the Chinese intend to barter with the WCDMA patent holders and maybe the GSM patent holders. Remember, China brings nothing to the WCDMA negotiating table.

As always, everyone pays QCOM.
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