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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: LBstocks who wrote (5150)	1/13/2000 11:11:00 AM
From: waverider	Read Replies (1) \| Respond to of 13582

Could someone give me a little background on the ETRI claims. What standing do they have to file this complaint? Rick >>>Commenting on a royalty payment dispute between the company and the Electronics and Telecommunications Research Institute (ETRI), Jacobs said a decision by the International Chamber of Commerce (ICC) arbitration board could be expected around July. There had been efforts by both sides to try and reach an agreement but after the matter entered the public spotlight the ability to come to a compromise was severely restricted, according to Jacobs. The research institute submitted a request for arbitration to the ICC in Oct. 1998, alleging that Qualcomm had breached certain provisions of the Joint Development Agreement. Qualcomm should pay the institute 20 percent of the royalties it receives from PCS (personal communications service) equipment manufacturers as well as the cellular manufacturers, the institute claimed. Qualcomm contends, however, that the 20 percent payment is applicable only to cellular technology.<<<

To: LBstocks who wrote (5150)	1/13/2000 11:48:00 AM
From: w molloy	Read Replies (1) \| Respond to of 13582

>> "The current rates are low enough to not cause hardship for the consumer," said Irwin Jacobs, Well, he would say that, wouldn't he. I know that royalty rates have been done to death on the threads but right now I'm going through hoops with a customer of mine who wants to reduce his BOM by 80c on a $100 'phone. My point is that the pressure on OEM's to reduce BOM is huge. They can save millions of dollars by shaving a few cents here and a few cents there. The royalty rate is the most visible (and easiest) target for cost reduction that the OEM's have. This problem will not go away. w.