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

To: Clarksterh who wrote (17104)	10/24/1998 12:23:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Clark, Cabi Speaks, But I sense Concern; From the October 26, 1998 issue of Wireless Week Qualcomm, Ericsson Joust Publicly By Brad Smith The disagreement between Qualcomm Inc. and Erics-son Inc. over code division multiple access technology continues to be fought in the public arena, although the issue soon will be heading to a federal court. The latest skirmish last week involved three of the 11 patents named in a 1996 lawsuit Ericsson filed against Qualcomm, plus patents covering "soft handoff" CDMA/Interim Standard-95 technology that Ericsson amended in the U.S. Patent and Trademark Office. Ericsson dropped the three patents from its suit in U.S. District Court in Marshall, Texas, which is scheduled to go to trial Feb. 19. Ericsson said it took that action because it wanted to streamline the number and scope of patents that would be tried. Qualcomm responded by saying the action "substantiates Qualcomm's charge that Ericsson deliberately misled the industry" over the essential nature of those patents. Qualcomm also said Ericsson, by seeking to amend its "soft handoff" patents, admitted that the original patents were invalid. Ericsson countered that it was merely strengthening the patents, which the Patent Office reissued as amended. One analyst, Marc Cabi of Credit Suisse First Boston Corp. in San Francisco, said he thought Ericsson fortified its case by the Patent Office action. But Cabi said he expected a difficult legal battle for both companies. The suit focuses on eight patents that Ericsson said Qualcomm infringed upon, including "soft handoff" and "macro-diversity" patents. Ericsson Vice President and General Counsel Larry Lyles said it is willing to license the patents to Qualcomm, although Qualcomm's countersuit questions their validity. "Qualcomm is making a deliberate attempt to try its case outside of the courthouse," Lyles said. Cabi said he believed Qualcomm was turning up the heat because it is concerned about increasing global acceptance for a third-generation network technology--wideband CDMA, which Ericsson backs. Another manufacturer back-ing W-CDMA, Finland's Nokia Corp., recently announced it plans to test a 3G trial system in China in early 1999. Telecom analyst Alex Cena of Salomon Smith Barney said in an Oct. 2 report that the "willingness" of 40 companies to license Qualcomm's patent portfolio is "an important vote on the future outlook" of Qualcomm's intellectual property rights. Matsushita Communication Industrial Co. Ltd., whose brand is Panasonic, and Nortel Networks also announced last week they will collaborate on W-CDMA market development and deployment with network trials later this year in North America, Europe and Asia. Qualcomm is a CDMA pioneer with more than 170 patents and applications for 400 more. The company has said it will not license its patents for any standard that is not compatible with its own 3G standard, cdma2000. Qualcomm's Louis Lapin, senior vice president and proprietary rights counsel, said Ericsson's dismissal of claims on three CDMA/IS-95 patents was an admission that "Ericsson wrongfully and falsely claimed essential patents." "That Ericsson waited more than two years to dismiss these meritless claims sheds light on its motives," Lapin said. \| Home Page \| Site Map \| Search Archive \| PowerSearch \| \| International \| Wireless Web Sites \| Hot Stories \| Please send comments and suggestions on this Web site to jcollins@chilton.net Wireless Week, 600 S. Cherry St., #400, Denver, CO 80246 Voice: 303-393-7449, Fax: 303-399-2034 Published by Cahners Business Information © Copyright 1998. All rights reserved.