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

To: engineer who wrote (5244)	12/4/2000 7:01:07 PM
From: carranza2	Respond to of 197054

The only downside to the deal which I can think of is the possibility that Spinco's cost advantage created by being royalty-free vis-a-vis QClassic now might be reduced or non-existent should any profits from the x-license go to QClassic instead of to Spinco. But I'm sure IMJ thought about this, too, before he inked the deal. Don't worry, be happy.

To: engineer who wrote (5244)	12/4/2000 7:05:34 PM
From: cfoe	Read Replies (2) \| Respond to of 197054

Further comment on TXN-QCOM deal. I have read all the speculation on what the TI-QCOM deal means, including my own previous posts. I then went back to the press release and looked again at the quote excerpted below. It may be the “lawyer” in me (I did predict Judge Sanders ruling to a tee), but here goes. [the companies] have entered into a cross-license agreement covering both companies' patent portfolios that allows each company to supply integrated circuits, including for all wireless standards. Let’s parse the above quote into two parts, as follows: 1) a cross-license agreement covering both companies' patent portfolios 2) “… that allows each company to supply integrated circuits..”. Does looking at what was agreed to this way mean that the x-license applies only to that Q-IPR which is necessary to supply integrated circuits? Does not QCOM have other essential IPR that is not directly related to “…supply[ing] integrated circuits”? If the answer to this question is yes, then all QCOM gave TI is the same deal that companies would be getting from Spinco once the spin-off is completed. Since the spin-off has not yet happened, the deal has to be with QCOM and not Spinco directly. The agreement goes on to say: “The companies have agreed to enter into a comparable agreement between TI and Spinco (the temporary name of the entity that QUALCOMM has announced will be spun off as a separate and independent entity) that will allow Spinco to supply integrated circuits for all wireless and wireline applications." I believe this may support my above speculation in the following way: Spinco does not exist yet as a separate legal entity and therefore cannot make the kind of license agreement it is designed to make. So QCOM, as it is currently constituted, will make the agreement for now, and Spinco will make it when it is legally able to. Again, I am no lawyer, so arrows please.