Replies to post #4652 on Qualcomm Inc (QCOM)

[Data_Rox]

And likewise through cross licensing - QCOM doesn't need to pay royalties to those that held IPR for QCOM's new chips. The key is in the patents involved in actually making the chip and making it work - not the air interface.

B^)

Q has a fair amount of ASIC licensees now - some of which were added without formal announcements of up-front or on-going royalties. The last one I remember that was royalty bearing was NEC for WCDMA/TD-SCDMA (not CDMA/CDMA2000)

ASICs
Agere Systems Inc.
EoNex Technologies, Inc.
Infineon Technologies AG
Koninklijke Philips Electronics N.V.
Lucent Technologies Inc.
Motorola, Inc.
PrairieComm Incorporated
NEC Corporation
Texas Instruments Incorporated
VIA Telecom, Inc.







QUALCOMM and Texas Instruments Enter into Cross-License Agreement

SAN DIEGO and DALLAS -- December 4, 2000 -- QUALCOMM Incorporated (Nasdaq: QCOM) and Texas Instruments Incorporated (NYSE: TXN) today announced that they have entered into a cross-license agreement covering both companies' patent portfolios that allows each company to supply integrated circuits, including for all wireless standards. The agreement recognizes the significance and value of each company's intellectual property, including Texas Instruments' DSP and Analog patents, as well as QUALCOMM's CDMA patents. The companies' current patents, as well as future patents filed prior to or on December 31, 2005, are cross-licensed on a worldwide basis.

The companies have agreed to enter into a comparable agreement between TI and Spinco (the temporary name of the entity that QUALCOMM has announced will be spun off as a separate and independent entity) that will allow Spinco to supply integrated circuits for all wireless and wireline applications. Additional terms of the agreement were not disclosed.

QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include integrated CDMA chipsets and system software; technology licensing; Eudora® email software for Windows® and Macintosh® computing platforms; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. QUALCOMM owns patents which are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. QUALCOMM has licensed its essential CDMA patent portfolio to more than 90 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2000 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

Texas Instruments Incorporated is the world leader in digital signal processing and analog technologies, the semiconductor engines of the Internet age. The company's businesses also include sensors and controls, and educational and productivity solutions. TI is headquartered in Dallas, Texas and has manufacturing or sales operations in more than 25 countries. Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at www.ti.com.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including QUALCOMM's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets QUALCOMM serves, as well as the other risks detailed from time to time in QUALCOMM's SEC reports, including the report on Form 10-K for the year ended September 24, 2000, and most recent Form 10-Q.

###

QUALCOMM, OmniTRACS and Eudora are registered trademarks and OmniExpress is a trademark of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. Windows is a registered trademark of Microsoft Corp. Macintosh is a registered trademark of Apple Computer Inc. All other trademarks are the property of their respective owners.

QUALCOMM Contacts:
Christine Trimble, Corporate Public Relation
1-[phone] (ph)
1-[phone] (fax)
e-mail: [e-mail]
or
Julie Cunningham, Investor Relations
1-[phone] (ph)
1-[phone] (fax)
e-mail: [e-mail]

Texas Instruments Public Relations Contacts:
Donna Coletti
[phone] (ph)
[phone] (fax)
e-mail: [e-mail]
or
Tish LeBlanc
[phone] (ph)
[phone] (fax)
e-mail: [e-mail]

Texas Instruments Investor Relations Contact:
Ron Slaymaker
[phone] (ph)
[phone] (fax)
e-mail: [e-mail]

[ihavenoidea]

Still confused. Are you saying its a distinction without a difference - qcom still gets their "full" royalty - and if so than the only thing i can think that TI gets out of it is cash flow (advance royalty payment) which could be significant. Am i getting closer?