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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Jon Khymn who wrote (10963)	11/23/1999 2:39:00 AM
From: Thomas Tam	Read Replies (2) \| Respond to of 54805

Before everyone starts freaking out regarding the possibility of this "news", realize that QCOM stated this word for word in their 1998 10-K also. The ultimate decision making process (in terms of stock ownership) is whether IDC can extrapolate any revenue from 3G technology whether cdma2000 or w-cdma? I'll leave that for the patent lawyers to address. What are QCOM's "other rights" in this settlement with IDC? Does the basic framework for IS-95 included in 2G phones, added with QCOM know-how force new equipment makers to seek a new license to make the same technology. Does adding features to someone else's technology force you to pay new fees for your own work? Seems to undermine innovativeness. The fact that QCOM published their 10-K on this date (in relation to the statement from IDC) is more coincidence than anything else. And QCOM knew about this issue in 98 as it did in 97, etc. My question becomes whether QCOM needs IDC's specific IS-95 technology or could they use Ericsson or Motorola if this actually becomes an issue. Ericsson, Motorola and InterDigital have each advised the TIA that they hold patent rights in technology embodied in IS-95. Lucent and OKI Electric have claimed patent rights in IS-96. In accordance with TIA guidelines, each company has confirmed to the TIA that it is willing to grant licenses under its rights on reasonable and nondiscriminatory terms. In connection with the settlement and dismissal of our patent litigation with InterDigital, we received, among other rights, a fully-paid, royalty free license to use and to sublicense the use of those patents claimed by InterDigital to be essential to IS-95. If we and other product manufacturers are required to obtain additional licenses and/or pay royalties to one or more patent holders, this could have a material adverse effect on the commercial implementation of our CDMA technology. No need to be trigger happy with selling QCOM and buying IDC at the moment. Later P.S. I still like the king JDSU, just trying to figure out how they can become a gorilla. And a question for the thread. Does INTC still have gorillaship? Does anyone really need an Intel processor now more than AMD? Seems like the microprocessor has become a commodity and will yield to the forces of supply and demand. Maybe that's why they delayed Rambus technology, as more suppliers in the value chain will opt for a cheaper alternative that can provide similar functions at a cheaper cost to maintain profits.