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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Raymond who wrote (3357)	6/11/1999 3:55:00 PM
From: Clarksterh	Read Replies (2) \| Respond to of 5390

Raymond - I think you should have listened to the Qualcomm conference calls (I would have liked to listen to the Ericsson CC's, but ...): <<The common knowledge now seems to be that QCOM won a big victory over Ericsson and Ericsson agreed to licence the IPR:s in the same way as the rest of the IS-95 companies has done.Pay something like 4%.This is far away from the truth.QCOM wanted to make a deal when they know that where going to loose in the trial in Texas.>> How do you get that they were going to lose the trial? I suspect that Qualcomm settled because Ericsson's strategy of FUD worked, but I'll concede we'll never really know. As for the royalties, just as Ericsson made it very clear in their post deal teleconferences that they only paid around $100M, Qualcomm made it very clear that Ericsson got the short end of the stick for royalties: From the joint CC: Q. How will cross licensing work? A.(Irwin)Both ways -proportional to patent portfolio. By itself this tells us little, other than the fact that there are no caveats other than the ones mentioned explicitly. (i.e. the royalty split is the same no matter who is doing the selling, Qualcomm, Ericsson, or some third party.) Now add to this that some comments from the Qualcomm follow-on CC: Qualcomm will now pay some smallish amount of royalties to Ericsson for all phones shipped (However, they aren't paying royalties for ASICs.) including CDMAOne phones, but they expect that the growth in GM will more than offset this payment. This was in answer to a question about the effect of royalty payments on near term phone GM. Thus the royalties paid to Ericsson on CDMAOne phones are not material. and The royalties for all CDMA modes will be identical. You do the logic - Short of Qualcomm out and out lying it is pretty obvious that Qualcomm got most of the royalties. <<They are showing 472 kbit/s packet data 384 kbit/s circuit switched all in a real environment from a bus driving around in Kista outside Stockholm.>> FWIW, the real hard part of CDMA systems comes under load. Having a bus driving around means surprisingly little. I am not trying to be combative, but this is HARD. Clark

To: Raymond who wrote (3357)	6/12/1999 12:10:00 AM
From: JGoren	Respond to of 5390

Your premise that Qualcomm would have lost the patent suit is incorrect. Do you know which patents were involved? Have you read them? Did you attend the Markman hearing? Do you even understand what a Markman hearing is? I bet not. Ericsson will be paying very substantial royalties to Qualcomm. The simple truth is that Ericy could not have a 3G program without Qualcomm IPR, and it was under enormous pressure from carriers such as DoCoMo to find an immediate solution. The lawsuit, as most patent suits, was little more than a negotiating ploy. 90% of lawsuits are settled on the courthouse steps; if you read my posts on the Qualcomm thread going back to somewhere around the fall of 1997, you will see that I predicted time and time again, that the suit would be settled just before trial. That's just how those things happen, because it makes business sense for both parties to craft a way that both profit.