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To: carranza2 who wrote (179)10/30/2002 6:52:57 PM
From: Maurice Winn  Respond to of 258
 
<The problem is that the Chinese got away with it when they demanded a lower royalty structure for domestically-consumed CDMA products and Dr. J. mistakenly gave in. >

Maybe it wasn't a mistake. When they start exporting cyberphones and paying 7% royalty, that'll be a BIG pile of money in the till. Since there are 5 billion people outside China and only 1.3 billion inside, I think we might be on a winning streak there.

It will also give impetus to cdma2000 against W-CDMA because China will see the opportunity and grab it with both hands, costing them internally only 2% or so. That will force everyone else's hand because China is BIGGG!!

Even with 7% royalty, they'll probably undercut Korean and other CDMA exporters, so we'll do better from China's exports than Korea's.

I like the 2% and 7% idea. Easier to enforce. Gets it going in China. More profit when they are succeeding [but not until]. Fair all around.

Mqurice