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

To: iggyl who wrote (30580)	1/1/2003 8:33:52 AM
From: Jim Mullens	Read Replies (1) \| Respond to of 196568

Iggyl, you asked->>”If a company is not in the GSM royalty pool and has to pay GSM royalties, has WCDMA IP and enters the WCDMA royalty pool and then produces a dual mode phone with both GSM and WCDMA capability, what is their royalty payment?” And, “aren't these companies significantly disadvantaged, compared to the Nokias, Ericssons, and Motorolas as long as dual mode GSM/WCDMA phones are necessary.” I would have to agree with your reasoning, but not knowing the licensing details one can only offer reasoned speculation. It is my understanding that the “significant disadvantage” to these companies is virtually eliminated when these companies employ a Qualcomm MSM6200 (GSM/GPRS-UTMS) chipset in their handset. It is my understanding that Qualcomm’s cross-license agreements with virtually all of the major GSM handset vendors grants Qualcomm royalty free use of their GSM/GPRS IPR. Qualcomm’s dominant position in essential IPR on all known flavors of 3G CDMA (CDMA2000, WCDMA/UTMS, TD-SCDMA) required that those GSM vendors wishing to enter the 3G market cross-license under those favorable terms with Qualcomm. In listening to Dr. I. J’s responses to several questions concerning IPR during the recent London conference, it is also my understanding that these favorable terms also pass thru to the handset vendors using Qualcomm chipsets in that little if any royalty fees would be payable by the handset vendor to the GSM IPR holders. I would imagine that this would provide Qualcomm with quite an advantage in establishing and maintaining a high market share in GSM/GPRS-UTMS chipset sales to Asian handset vendors. I welcome comments from anyone with a different understanding. Happy New Year to ALL- Jim