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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 175.02

+2.6%

3:58 PM EST

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To: J.B.C. who wrote (17587)	11/3/1998 2:31:00 PM
From: tero kuittinen	Read Replies (2) of 152472

I've seen several articles detailing the resentment current Korean licensees feel about the amount of money they have to pay. This ties directly into W-CDMA debate... the Korean companies would not be involved in developing W-CDMA products right now if they did not feel that this could be an escape hatch from inordinately high IPR costs. Apparently the Korean comapanies are ready to support W-CDMA even if it's not compatible with IS-95. Maybe "hate" is too strong a word. But resentment is accurate. The Korean quotations in news items on this law suit use pretty strong language... there's little love lost between Qualcomm and the Koreans. The importance of the Motorola deal is that it is the first real break of a Western handset company into this relatively large market. These deals most often lead into follow-ups. If Motorola is three years behind Qualcomm in developing CDMA handsets isn't this turn really surprising? I don't know whether being entangled in constant lawsuits is the normal way of conducting business... I can't recall when Nokia was hit by one. Tero

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