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To: D. Newberry who wrote (28760)	7/25/2000 2:15:52 PM
From: Getch	Read Replies (2) \| Respond to of 54805

Spinco Patent Pool GSM was largely successful for its early proponents due to their pooling of patents, to the exclusion of those not in the original pool. 15% plus royalty rates for those not into GSM early. Spinco, being given some essential IPR from QCOM, is now in a position to pool with the 27 or so other claimants to W-CDMA to get the needed patents to produce W-CDMA chips. Spinco will be able to negotiate a zero, or near zero, cost in the patent pool for its needed patents. It also will pay no royalties to QCOM. Spinco is instantly the low cost producer of W-CDMA chips. Qualcomm, however, can stay with its pledge to not enter a patent pool, and stand outside the pool watching, and collecting royalties on its remaining essential patents. This creates a patent pool, plus one. This will make W-CDMA essentially equal to CDMA 2000 from a royalty cost standpoint for those in the W-CDMA patent pool. They must pay QCOM 5% for either flavor, but will pool (Zero) for other patents. This is not going to make them happy, as they most likely felt their W-CDMA patents would net them a lower royalty cost from QCOM going forward. Those outside the W-CDMA pool will be forced to pay twice, both to the Pool and to QCOM, making W-CDMA very expensive for them. This move could be a full chapter in the next edition. QCOM - Lifeguard of the W-CDMA Pool Longtime lurker, long Q

To: D. Newberry who wrote (28760)	7/25/2000 3:26:31 PM
From: DownSouth	Read Replies (1) \| Respond to of 54805

Spinco will license from QCOM royalty free. Now, just suppose Spinco becomes the INTC of CDMA chipsets with an overwhelming share of the market. Where will the Q get its' future royalties in the event Spinco has no meaningful competition? Blunt reply: NO! Spinco will NOT being paying QCOM any royalty fee. Zippo. Spinco will have some of QCOM's current IPR and will be using other QCOM IPR (still owned by daddy QCOM) royalty free, in exchange for QCOM's right to use or even own IPR produced in the future. Very clear in cc! Look under a different rock. This one has already been turned over.

To: D. Newberry who wrote (28760)	7/25/2000 3:46:11 PM
From: DownSouth	Read Replies (2) \| Respond to of 54805

Sorry, D Newberry. You did say "royalty free", not fee. You are correct. Please ignore my Blunt reply. Now to answer your question: "Where will the Q get its future royalites in the event SPINCO has no meaningful competition?" Q will be inventing new CDMA products, as well as selling royalties. So they will be spawning new tornadoes or participating in the new wireless ones. Also, as SPINCO invents new stuff, QCOM gets to use that new IPR as it sees fit. Some of it will be for royalties. Some of it will be new solutions. QCOM wins no matter what.