Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Kayaker who wrote (12741)	6/21/2000 3:15:00 PM
From: Kent Rattey	Read Replies (2) \| Respond to of 13582

<Although the company's operating brief is decided, it still has no legal framework, and must wait for the go ahead from regulatory authorities, including the U.S. Department of Justice.> Please.... Well DOJ, we have been charging close to 30% in royalties, but now that an American company owns most of the essential IPR, we want to cap total royalties at 5%. DOJ: OK, I guess that means we can cap all your profits too, right? That way we can ensure the consumer does get a good deal. Nah, forgetaboutit. ROTFLOL

To: Kayaker who wrote (12741)	6/21/2000 3:54:00 PM
From: A.L. Reagan	Read Replies (2) \| Respond to of 13582

3G patents initiative devised to avoid 'Qualcomm-type' disputes Has been quite obvious for many months the WCDMA "Musketeers" (as Maurice dubbed them a few weeks back) would concoct something along these lines. To repeat earlier posts, the leverage the Musketeers hope to exert on QCOM to lower its rate is the punitive tariff non Musketeers will ante up to play in the DS product world. Unless QCOM decides not to play in DS products (a grievous error, IMO), the net royalty to QCOM (as a company, not the IPR licensing segment only) will, in fact, be lower than with CDMA2000 implementations. That is fact, not FUD. How much lower will depend on the success of the bi-lateral negotiations presumably in some form of process with currently unlicensed DS-CDMA vendors. That's the crux of the issue. Q has for sure done the wise thing to stay out of the Musketeer pool, but there is a price to be paid. It is not hard to imagine that non-Musketeers with nothing to offer in trade would be dinged in that 29% area. Because there are litigable issues (against which huge entities like NOK will agree to indemnify their customers), and also because Q has licensed some vendors for DS, the notion sometimes posted on this thread that Q can somehow "stop" WCDMA is laughable. Q is in the best position by far in the 3G IPR game, but holders need to have realistic expectations, and really understand the competitive landscape. An aspect of the Musketeer pool that might be helpful to the Q is that the Musketeers will have to sort out inter alia the relative values of their various DS IPR rights, which should make it easier for the Q to deal bi-laterally with the holdouts (NOK, MOT, DoCoMo, and whatever IDCC actually has, being the principal players). And there's always the possibility that the Musketeers drag out the process of valuing their respective IPR and give CDMA2000 an even better 3G head start. Not sure whether net, net, a delay in DS 3G is actually good for Q, however. Q certainly doesn't think so in all its public statements. This is a fascinating poker game (or perhaps a better term might be "blood sport"), but it is evolving nonetheless fairly predictably. IJ & Co. will not win every hand, but should walk away with the most chips by the end of the game.