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

To: Maurice Winn who wrote (109686)	2/19/2012 10:49:42 AM
From: Jim Mullens	2 Recommendations Read Replies (1) \| Respond to of 197033

Mq, re: “their time is up”........................................................................ It's now 20 years since the great physics-busting early patents and their time is up. An unlicensed newbie, without any legacy agreements on Qualcomm patents, could start up and do anything they like, especially with the pressure coming onto what's FRANDly and what's not. Apple had never made a phone and came from nowhere and is heading for being the world's first $1 trillion company, which they would already be if their P:E was the same as Qualcomm's or a lot of other companies. __________________________________________________________________________ Yes “time is up” on Q’s original CDMA patents but new patents are issued every day, and Apple as a “new entrant” is a QCOM “customer” (or a licensee) and its 3G/4G devices are royalty bearing. It’s possible a new mobile wireless technology not based on any of QCOMs patents could be invented tomorrow (anything is possible), but as we found out the hard way with CDMA, the dominant incumbents will fight tooth and nail to preserve their investment / revenue stream. As a case in point, Intel poured billions into pushing WiMAX and failed miserably. It seems to me QCOMs licensing model is secure for many years to come (the better part of my lifetime) via- …+ its many new and extended licenses (17+ years) with many of the majors, …+ new non-CDMA based technologies (LTE), and ….+ improvements to existing technologies resulting in automatic extensions in some cases whereby using a new patent in the bundle extends the licensing period for the whole bundle. Also, recall that the stated standard LTE rate is ~ 3.5%, not much different from the current average royalty rate.