To: otter who wrote (5972 ) 3/25/1999 3:16:00 PM From: OldAIMGuy Read Replies (1) | Respond to of 6565
I'm sure everyone's already heard or read about the QualComm/Ericsson deal, but if not, here's the brief: ------------------------------------ Ericsson and Qualcomm reach global CDMA resolution Date: Thursday, March 25 1999 Agreement Paves the Way for the Next Generation of Global Wireless Communications ERICSSON (Nasdaq: ERICY) and QUALCOMM (Nasdaq: QCOM) today announced that they have entered into a series of definitive agreements that resolve all disputes globally between the companies relating to Code Division Multiple Access (CDMA) technology. Under the agreements, ERICSSON and QUALCOMM agree to jointly support a single world CDMA standard with three optional modes for the next generation of wireless communications, to enter into cross licenses for their respective patent portfolios and to settle the existing litigation between the companies. The cross licenses are royalty bearing for CDMA subscriber units sold by either party. In addition, ERICSSON will purchase QUALCOMM's terrestrial CDMA wireless infrastructure business, including its R&D facilities, located in San Diego, Calif. and Boulder, Colo., and will assume select customer commitments, including a portion of vendor financing obligations, related assets and personnel. The agreements are subject to necessary regulatory approvals and other customary conditions. The agreement settles the litigation between ERICSSON and QUALCOMM and provides for cross licensing of Intellectual Property Rights (IPRs) for all CDMA technologies, including cdmaOne @ , W C D MA and CDMA2000 @. QUALCOMM also will receive rights to sublicense certain ERICSSON patents, including the patents asserted in the litigation, to QUALCOMM's Application Specific Integrated Circuits (ASICs) customers. The companies have also agreed to jointly support approval by the International Telecommunications Union (ITU) and other standards bodies, including the U.S. Telecommunications Industry Association (TIA) and the European Telecommunications Standards Institute (ETSI), of a single CDMA 3G standard that encompasses three optional modes of operation: 1) direct sequence FDD, 2) multi-carrier FDD, and 3) TDD. Each mode supports operation with both GSM MAP and ANSI-41 networks. QUALCOMM and ERICSSON believe that rapid adoption of the single CDMA standard is in the best interests of the industry and allows each operator to select which mode of operation to deploy based on marketplace needs. As part of the agreement, the companies will each commit to the ITU and to other standards bodies to license their essential patents for a single CDMA standard or any of its modes to the rest of the industry on a fair and reasonable basis free from unfair discrimination. The companies will notify the ITU and other relevant standardization entities of the agreement to remove all IPR blocking currently in force. The grants of licenses and the settlement of all litigation, as well as the commitment to standards bodies to license their essential IPRs, will become effective upon closing of the purchase of QUALCOMM's terrestrial CDMA wireless infrastructure business. ------------------------------------ I would assume that anything that's good for ERICY will also be good for VLSI. Both ERICY and WCOM are up 10%+ today. Best regards, Tom