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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (28900)	7/26/2000 12:51:31 PM
From: gdichaz	Read Replies (1) \| Respond to of 54805

DS: Huh? "We must assume that QCOM's sale of IPR and Spinco's x-licensing of IPR will convey with it enough information for the buyers to write software. So software is not a high BTE. It does not make Spinco a Gorilla." Why? Didn't work for Nokia, even with a chip license and/or even earlier more broad IPR licenses for handsets. Cha2 What makes you assume that Spinco does not keep control of the second and third of the 3 essential levels of software and the necessary knowhow - yes the embedded software goes with the chips but what else? Trying to understand your thinking. And again, we are still dealing with limited info here. A decision on what Spinco is in fact will be clearer over time.

To: DownSouth who wrote (28900)	7/26/2000 2:50:48 PM
From: alburk	Respond to of 54805

DS & Slacker Thanks for the ongoing debate regarding Spinco and gorilla status. I would like to insert that cross-licensing does not necessarily require that Spinco reveal its proprietary architecture and applications either 1)in total or 2)as it is developed. I'm not an expert on Intel but it seems that even though Intel licensed it's PC chip architecture, Intel was at least a generation(s) ahead in its top line chip and oncoming chip technology. Intel seems to have licensed it's architecture with just enough delay to ensure its complete dominance--making a monkey out of AMD. Can QCOM's Spinco deploy this strategy? Thus far it seems that CDMA asics are not easy to manufacture with, and especially without, QCOM's IPR. And Spinco's two-way pipeline with QCOM would seem to put Spinco in the driver's seat.