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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 177.06+1.8%11:00 AM EST

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To: SKIP PAUL who wrote (20287)12/22/1998 6:40:00 PM
From: Dave  Read Replies (3) of 152472
 
SKIP PAUL:

If QCOM refused to licence it's IPR for WCDMA
what are the viable choices for ERICY:

1. Work around QCOM's IPR. which could take years to develop if at all.


Well, as was discussed on this thread, if Qualcomm's patents are, indeed, blocking patents, then Ericsson stands no chance in "working around" Qualcomm's patents. However, I disagree, and you are implicitly stating that Qualcomm's patents are not, in fact, blocking patents.

Next point, it wouldn't take Ericsson years of R&D to develop "work around" solutions. All it would take would be a team of attorneys with some of their top R&D people a few months, if not weeks, to find the holes and file at either the US PTO or EPO.

One more point to add for your case, there is a big difference in adding a feature to an existing patent and adding a patentable feature to receive a patent. However, when receiving a patent, it is luck of the draw b/c the "breadth" of coverage really depends on the examiner, i.e. the person working at one of those Patent Offices. Get my drift?

2. Start selling WCDMA without a license from QCOM and take a chance in the
courts. This could expose it to huge risks.


If Qualcomm does indeed have the IPR, yes this is a huge risk, but not just for Ericsson, but for any provider. I do not see any provider, such as AT&T Wireless, offering W-CDMA without some sort of guarantee from Ericsson.

Nevertheless, I do agree with you that if Qualcomm has the IPR and Ericsson sells its W-CDMA equipment, infrastructure, etc to Wireless providers (of course where Qualcomm has the coverage for their IP), Ericsson is going to find themselves in a Patent Infringement suit. Furthermore, if Qualcomm provides their case (of course before a fair and unbiased judge and/or jury), Ericsson might be put out of business. Remember, Kodak rendered Polaroid bankrupt after Kodak's victory in a Patent dispute.

3. Become a CDMAone and CDMA2000 licensee and compete with other
licensees way behind Nokia.


Always the third option. Maybe Ericsson could offer another "fig leaf" ala the rate reduction to Qualcomm.

dave
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