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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: JGoren who wrote (1398)	7/26/2000 1:54:45 PM
From: w molloy	Read Replies (2) \| Respond to of 196961

JGoren-so you don't think that Spinco is a way for QCOM to save face? Spinco can now persue UMTS more vigourously (as implied by all those references to GSM partnerships in the press releases), in concert with CDMA2000, but it can leave the promotion of CDMA2000 to it's parent. QCOM needs to seed Spinco with just enough IPR so it can participate in the WCDMA patent pool. QCOM can continue to remain outside. Spinco pays royalty to QCOM, so everyone is happy. QCOM is betting on SpinCo hitting the market early with a fully licensed UMTS solution. If handset OEM's want to use someone else, they will also have to deal with QCOM directly.

To: JGoren who wrote (1398)	7/26/2000 3:02:57 PM
From: Ingenious	Read Replies (1) \| Respond to of 196961

After Spinco, Q Sr. is nothing but a shell. This is great for licensing because it will make it really difficult for grumbling parties to use their patents in counter claims. If Q will become a design house with little or no products,it will be hard for Nokia and others to assert patent infringement. Meanwhile, Q Sr. licenses there technology at a reasonable rate to spinco and other preferred subsidiaries. By clearing away all the products, Q Sr. becomes a licensing machine/shell. Hard to make a claim of infringement or damages on a company that doesnt directly make, use, or sell any infringing products. A number of companies with strong patent portfolios have taken this approach quite successfully. It may not be sexy, but it is a really source of cash.