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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 166.77-4.2%3:59 PM EST
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To: kech who wrote (15569)9/26/1998 2:15:00 PM
From: jpbrody  Read Replies (3) of 152472
 
Irwin Jacobs letter to Business Week.

There is a letter from Irwin Jacobs in the October 5th issue of business week concerning a Sept 7th story in Business Week ("Cell phones: Europe made the right call.")

He disputes the statement made in the article that top officers at Qualcomm have said that "Europeans tweaked the technology in a way that will reduce Qualcomm's royalty from its patents." He says that increasing the number of CDMA subscribers worldwide will only increase royalties.

He says that W-CDMA is crafted intentionally to minimize any compatibility with current generation systems, but that it would not in any way reduce Qualcomm's royalty stream.

Then he reiterates the three principles that a new standard must meet if Qualcomm IPR will be a part of it:

(1) A single converged worldwide standard should be selected for the third generation.

(2) The converged CDMA standard must accommodate equally the two dominant network standards in use today (IS-41 and GSM-MAP).

(3) Disputes on specific technological points should be resolved by selecting the proposal that either is demonstrably superior in terms of performance, features, or cost, or if there is no material difference, that is most compatible with existing systems.

I'm starting to get the picture. It's over. Qualcomm has already won the 3G battle. There's just a question of whether it will be CDMA-2000 or W-CDMA (modified to be more compatible with existing standards). Either way, the royalties will be rolling in.
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