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Thursday, 03/25/2004 10:41:35 AM

Thursday, March 25, 2004 10:41:35 AM

Post# of 93821
ot RadioShack in tech collaboration

RadioShack and Motorola are teaming up to get new technology products ready for sale to consumers, in an agreement that pairs Motorola's manufacturing capabilities with RadioShack's 7,000 stores.

The collaboration will start with wireless accessories using Bluetooth technology, developed by a consortium that includes Motorola, IBM, Intel, Microsoft and Nokia. Bluetooth wirelessly connects electronics in close range, allowing a cellphone user, for example, to listen to calls through an earpiece while the handset is tucked inside a briefcase.

Motorola and RadioShack have deep ties, with the electronics chain carrying Motorola mobile handsets, networking equipment and power devices. Under the new product alliance -- one of several that RadioShack has lined up to create a pipeline of fresh merchandise for its stores -- the companies will jointly develop and license consumer products using emerging technology.

"Motorola is dealing with thousands of patents on technologies that we're interested in," said Len Roberts, RadioShack chairman and chief executive. In turn, RadioShack has thousands of stores that can help Motorola bring its goods to a broad base of consumers. Products developed under the pact will start appearing in RadioShack stores by year's end, Roberts said.

Fort Worth-based RadioShack will get part of the revenue generated by the new products, and it will have rights to carry the items exclusively for an agreed amount of time. The chain will also use the international reach of Motorola, a $27 billion company based in the Chicago area, to try to distribute RadioShack's licensed products outside the United States. Other details of the agreement were not disclosed.

Since September, RadioShack has formed alliances with companies including power adapter manufacturer Mobility Electronics and security products maker GlobeSecNine. Future partnerships may focus on music, software and other services that would allow RadioShack to collect residual fees.

"We think we can get involved in providing content," Roberts said.

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