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

To: SKIP PAUL who wrote (20360)	12/23/1998 1:43:00 PM
From: kech	Read Replies (1) \| Respond to of 152472

Engineer this is a key point that helps understand Q's business model. You said : "I think the point to go along with this is that they also created a market for this IPR and have a product line based on it. without this, the patents would be worth very little." I am interpreting it to mean that the value of the royalties is higher given that Qualcomm can mount a direct attack on the market even without counting on licences and royalties. In other words, the opportunity to go to the market and have DDI/DDO present a competitive threat in Japan is a more credible threat to NTT than just sitting back and claiming IPR that ERICY needs. If there was no competitive threat, ERICY could sit back and wait until it invents around the patents. Since the Q can mount a direct competitive alternative, ERICY's customer NTT is not willing to wait too long. The synergy of IPR, handsets, infrastructure, ASICs etc has to be understood in this context. I.e. to get the real value of the IPR the Q has to be able to deploy full systems and mount competitive alternatives. Just an editorial on what determines the real value of IPR as well as a reminder about why the Q is in handsets (some recently have suggested that the Q should bail-out of this part of the business).