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To: JMD who wrote (8149)	7/30/2000 3:07:16 PM
From: Don Lloyd	Respond to of 10309

Mike - [...I have absolutely no idea why a Qualcomm customer or Qualcomm itself will be liberated to cross-license GSM IPR holders as a result of this Spinco action. Can you explain it to me?...] It would be SPINCO that is free to cross license to enable it to build parts including GSM. For a new customer that has GSM IPR and needs CDMA rights, it previously might have needed 10 items from QCOM for $10 in royalties. If it felt QCOM needed GSM IPR, it might have tried to bargain the net cost down to $5 and GSM rights. After QCOM spins off SPINCO, and gives it 2 of the 10 CDMA items that the new customer needs, the new customer will still need to pay the full $10 to QCOM for the remaining 8 CDMA items, and will have to enter a royalty-free cross license agreement with SPINCO for the remaining 2 in exchange for the GSM that SPINCO needs, but that QCOM doesn't (because it no longer manufactures anything in this area). Regards, Don

To: JMD who wrote (8149)	7/30/2000 3:25:45 PM
From: Don Mosher	Read Replies (1) \| Respond to of 10309

Dear Surfer Mike, I have been long WIND and QCOM, thanks to Allen Benn, since the summer of '97. Although I have followed both threads since that time,I only recently began posting, mainly on the G&K thread. I say that because I have not learned how to hypertext my messages yet. If you will read G&K posts #28997, 28928, and 29028, you will find my long response to your question. In brief, QCOM give SPINCO enough essential and enabling patents that they can cross license for GSM because they are becoming a separate legal entity. QCOM retains most patents, and secures future patents from SPINCO in lieu of cross license money from SPINCO. QCOM retains their patent position that requires royalties from all forms of CDMA. I guess that is why QCOM has a Vice-President for Patent Strategy. Don