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

To: matherandlowell who wrote (53302)	7/7/2006 2:20:34 AM
From: Clarksterh	Read Replies (1) \| Respond to of 197014

My understanding was that owners of relatively little IP were demanding 3 or 4 times the amount QCOM was asking for the overwhelming IP they own. This does happen (witness the Ericsson case in England). But in general I'd be stunned if any one individual company were getting anywhere near 5% from GSM as a general rule. If the Europeans wanted to paper over the patents of CDMA and formulate a standard based on CDMA plus some of their IP, he agreed to do that but only if the Europeans agreed to pay the QCOM standard rate. Pretty much guarantee this is not correct. There have been independent papers written on the total combined royalty rate - and it is approx 15-20% TOTAL for those not in the club, not the 50-100% you'd get from 4 or 5 companies each charging 2 or 3x Q's rate. Clark

To: matherandlowell who wrote (53302)	7/7/2006 9:22:47 AM
From: barty	Respond to of 197014

matherandlowell. you also have royalty stacking in CDMA (remember Qcom have admitted that they're not granted pass through rights in every case) its just not to the same extent as GSM. Like it or not, those with large IPR positions in GSM pay next to nothing in royalties (because they cross license with other IPR holders) while in CDMA everyone pays Qcom (and a few other IPR holders). i'm not saying its right or wrong, but in both WCDMA and GSM those handset OEMs with the IPR political clout have significant cost advantage over others (even when you include the Qcom rate in WCDMA). Thats not going to change.