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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: golfinvestor who wrote (94772)	2/28/2001 12:24:11 AM
From: mightylakers	Respond to of 152472

Don't worry, he will come up with a different theory. I'm particular laughing at his "Why didn't they just get the whole license agreement at one time?" argument. But one thing though is I really wish his theories are true. Because that means Q has much more power than we perceived, i.e. can force those 50 some licensees( some of them many times bigger than Q) into playing the role of little puppy of Q in Q's PR show.

To: golfinvestor who wrote (94772)	2/28/2001 1:13:28 AM
From: A.L. Reagan	Respond to of 152472

It's my understanding the royalty rate is based on the Average Selling Price (ASP) of the phone from the equipment manufacture to the carrier. Based on net selling price as follows (from a September 1999 royalty agreement): "Net Selling Price", with respect to each Licensed Product Sold by LICENSEE, shall mean one of the following, whichever is applicable: (a) When Sold by LICENSEE to a Purchaser (a "Purchaser" being a person or entity that does not control LICENSEE, is not controlled by LICENSEE or is not in common control with LICENSEE; and the term "control" for the above purposes shall mean the direct or indirect ownership or control of more than a twenty five percent interest), the Net Selling Price shall be the Selling Price charged by LICENSEE for Licensed Products Sold to such Purchaser; (b) When Sold by LICENSEE to a person or entity that is not a Purchaser (a "Related Buyer"), the Net Selling Price shall be the Selling Price charged by the final vendee Related Buyer upon resale by the final vendee Related Buyer of Licensed Products to a Purchaser but in no event less than the Selling Price that would be realized in a sale to a Purchaser transacting at arm's length. (c) When retained by LICENSEE for its own use or lease, or when Sold by LICENSEE to a Related Buyer for its own use or lease, the Net Selling Price shall be the Selling Price that would be realized in a sale to a Purchaser transacting at arm's length. "Party" shall individually mean QUALCOMM or LICENSEE and the term "Parties" shall mean collectively QUALCOMM and LICENSEE. -------------------------------- sec.gov (about 2/3rds through the filing)