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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 164.53-0.4%Jan 14 3:59 PM EST

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To: bananawind who wrote (22966)2/16/1999 6:50:00 PM
From: Maurice Winn  Read Replies (1) of 152472
 
*Ericy doing a Texaco* Seems as though Ericy might try going ahead with their VW40, giving a guarantee to buyers that all IPR is taken care of and Ericy will handle any damages claims. They appear to think that if they do sell systems illegally, and Qualcomm challenges them in court and sues for damages, the courts will award damages of "The usual royalty fee which telecommunications companies get for use of patented technology".

They should review the legal history of Texaco Incorporated and what happened to them when Texaco adopted a cavalier, presumptuous and somewhat contemptuous approach to the USA legal system. They were taken out behind the wood shed and given a beating which they'll never forget.

It seems that Ericy are hoping to defer decisions on 3G as long as possible, like Saddam just goes on deferring, stonewalling and delaying to the last second. This gives Ericy the longest chance to sell as much GSM as they can, in which they have a good share. As soon as the cdmaOne, cdma2000, WWeb floodgates open, they are going to be just one in a crowd.

If Ericy gives the fingers to the legal system and abuses patented technology and USA property rights, they might find that Qualcomm is awarded full damages in the amount of the amount Q! had been requiring for royalties in the first place, together with a penalty amount of Texaco proportions. It could be VERY ugly for Ericy.

Meanwhile, Sam Ginn thinks maybe an ASIC can handle variable chip rates. Maybe it can, but it looks suspiciously like a clumsy way to achieve 3G, with the main aim to lever Q! royalties down. Unless Ericy has demonstrated improved efficiency with their 3.84 chip rate, there is no reason other than royalty reduction from Vodafone's point of view to include the higher chip rate. Being one of the biggest cdmaOne users, backward compatibility will be good for Vodafone/Airtouch. Backward compatibility will also enable them to roll out cdmaOne networks now, rather than wait for 3G to be ready in 3.84 chip rates.

Maybe multi chip rate ASICs can be produced [within 10%]. Maybe they will take years. Nokia hasn't done very well so far.

It's all such fun!

Mqurice
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