| | | Curious, re: QCOM IP / royalty business model.................
If the issue of how much royalty is fair is supposed to be based on how much of the IPs under license is actually used by a licensee, then we'd have a huge problem on our hands today. In fact, is that not the exact point of Apple's (and others') complaints against bundling? By bundling Q is forcing licensees to accept IPs which they may or may not use. Worse, it is not clear to them that those patents are even valid.
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1) If the issue of how much royalty is fair is supposed to be based on how much of the IPs under license is actually used by a licensee, then we'd have a huge problem on our hands today.
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Per the above, you’ve essentially numerated the basic problem in your – license at the modem level. The modem itself accounts for <10% of QCOM’s cellular IP.
Is it logical / fair for the modem supplier (or other component suppliers) to bear the burden of the other 90% that not practiced entirely with the modem ? I think not.
2) By bundling Q is forcing licensees to accept IPs which they may or may not use. Worse, it is not clear to them that those patents are even valid.
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Cellular IP portfolio licensing has been the precedent / accepted / standard / legal practice, and the most efficient method for over three decades. It may not be perfect in all respects, but any change from that as we’ve noted would be exceedingly more burdensome, costly, and be even more unworkable in the real world.
QCOM itself has more than 130,000 patents itself, both SEP / NSEP. Are we to believe **all** industry IP holders are now going to be required to painstakingly map each patent to each function in each component, in each device, and infrastructure product? And, then assign a specific IP value to each and enter into royalty negotiations on a patent by patent basis. Are there enough patent attorneys / supporting staff (engineers etc.) and litigators on all sides to support such a costly / time consuming endeavor? If that were to happen, I imagine cellular innovation would rapidly come to a virtual halt, with all hands on deck assigned to this burdensome / unproductive task.
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