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To: Rick who wrote (27330)	7/6/2000 2:24:53 PM
From: Eric L	Respond to of 54805

Fred, Re: (QCOM) IP worth & Royalties in 3G << Is anyone aware that GSM royalty payments can be up to 29%? >> Yes. Although 29% is very high side. Infra low side. Handsets high side. Handsets more typical maybe 20% I think. << Or am I reading this article wrong? >> You are not. That, by the way, is an important post you linked. DS CDMA (WCDMA) is GSM open committee based architecture. Typical committee base scenario. Proposals requested. In the case of an air interface for 3G UMTS. 5 are submitted. 1 (proposed jointly by NTT & ERICY) is selected. The specifications evolve. Players like Nokia, Alcatel, and all pile in and participate in development. At the end of the day, lots of IP to distribute. Note this: "Over the last 18 months the 3G3P has brought together 41 companies and organizations to quantify just what is meant by fair, reasonable and non-discriminatory terms for evaluating whether a patent is essential and for establishing a fair price, as well as pre-defining the commercial terms of the new company." Important to realize that this is part of the significance of participation in 3GPP. Qualcomm does not participate. They are 3GPP2. No question they will participate (ERICY/QCOM settlement dictated by ITU), but how much and when? - Eric -