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Friday, May 13, 2005 12:08:25 PM
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So, essentially when a customer approaches us to buy a platform, they first must take an essential patent license from our parent. So, unless they sign an essential patent license, we don't sell them a platform. And this is a payment that they make directly to LM Ericsson.
And then we sell them a platform. Each of our platforms has a flat technology fee. It's access to the technology where we can send them all the necessary materials, the documentation, the test boards. And it's access to each particular platform that we have. So, we might have a GPRS platform, and EDGE platform and a wideband CDMA. Each of them has a separate fee.
The minute you buy a platform, it triggers a license where they - they can go and buy ASICs that we develop together with our ASIC manufacturer. So, we develop the ASICs, we design them. We then transfer them over to our ASIC partner and our ASIC partners build the ASICs for us and sell them for us.
But in order to do that, they do it under license that we have given the customer. In other words, the customer has a have made right license in this model. And then the customer engages us while building the phone to do all sorts of engineering services. We provide a whole suite of services, everything from writing device drivers, so we write drivers for their cameras, for their displays, for their batteries, if they have Bluetooth, for example, or they have (inaudible) for their memory, we do all of that.
R
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