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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 155.82-1.3%Jan 23 9:30 AM EST
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To: Quincy who wrote (7814)1/31/1998 7:11:00 PM
From: Quincy  Read Replies (1) of 152472
 
IPR demands from ETSI are not as simple as I thought.

"So far 29 companies from around the world have pledged to ensure their intellectual property is available, affordable and in a non-discriminatory way to other vendors. However, Qualcomm, the US cellphone-maker which holds certain key IPRs in CDMA technology, has still fully satisfy the European Telecomunications Standards Institute's demands.
ETSI says universal adherence to its IPR requirements, is vital to ensure that the market for equipment for the universal mobile telecoms system (UMTS) benefits from the greatest possible economies of scale.
According to Fred Hillebrand, the chairman of ETSI's Special Mobile Group which oversees the standards process for next generation, or UMTS, mobile systems, the IPRs held by Qualcomm lie at the heart of the new UMTS terrestrial radio access (UTRA) proposal. "

UMTS wants low cost licenses that are uniform across the marketplace. Otherwise, this effort is stillborn.

Should Qcom negotiate with UMTS a license with the condition that all existing litigation over patents be summarily dropped? Should Qcom agree to all terms except for the "uniform" condition on licenses and royalties?

I don't think existing IS95 licensees would enjoy seeing Ericy get a license that possibly would be more advantageous than their own.

It also appears that Qcom could come up with some kick-butt WCDMA appliances of its own.

While Qcom's IPR guarantee a certain level of success to 3GW, and millions saved in research dollars (they don't have to work around them anymore) it doesn't guarantee an immediate economic sucess.

Have a great weekend.
Q
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