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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 152.77+0.4%11:55 AM EST

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To: southtech who wrote (197383)1/28/2026 9:26:06 AM
From: kech2 Recommendations

Recommended By
Jon Koplik
matherandlowell

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Holder of this stock from the get go, early 90’s. Not to seem greedy, but I have always been amazed at the original settled royalties established for use of Q’s patents after the arm wrestling on the courthouse steps with Ericsson/ Nokia. If I’m not mistaken, they charged approx 19% if you were not in there fraternity. Qcom won the patent war and in my view charged a measly percentage capped at the wholesale price for use of their patents. A lot is owed to Irwin and Viterbi for their contributions and generosity, but appears to me good guys, and they are often get taken advantage of. They were WAY too nice in settling for such a reduced royalty as compared to the KINGS of mobile wireless. Anyone agree?

Nice to reflect on this again. I agree it always seemed like Qualcomm was too nice with its capped price compared to the 19% royalty of GSM world. On reflection though, none of the players in the club actually paid that much. They all just used it to cancel out claims among each other and so it mostly just resulted in an entry barrier against anyone else trying to join the club and sell cell phones in the world. It was a way of configuring a limited oligopoly. So Irwin might have realized this and that the effective rate was much lower among the club members than the 19%, maybe just 2-3% on average, just guessing here. Maybe others know. So even with the capped low rate there is plenty of attempts to break out with each new generation. Might have fueled even more if royalty rate was higher?
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