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http://news.cnet.com/news/0-1006-200-1425892.html?tag=stpretty interesting...Communications and technology company Motorola today said it introduced a single chip for wireless devices capable of performing a range of functions, from powering cellular phones to delivering Internet services.
This poses an interesting question, and I wonder if anyone has any insight into this. What would this mean for QCOM in terms of collecting CDMA chip royalties? Is it possible (and I suppose that this might just end up in the courts eventually) that they could eventually collect royalties on TDMA and GSM phones which use this integrated chip? In that case, we're looking at a huge development here.
RtVandelay said:>>What would this mean for QCOM in terms of collecting CDMA chip royalties? <<I doubt that MOT could make their product work on a CDMA system without infringing Qualcomm patents. It is ironic that a phone with this multi-standard chip could generate royalty income for QCOM even if it is never used on a CDMA system.Another question comes to mind: the Motorola chip uses an M-Core processor. What will the impact be on ARM?CNBC reports that the MOT chip will be on the market by spring.Steve
Posted this on QCOM board:This chip is not going to be good for QCOM. I'm too lazy to search through the threads but there was a poster that set out all the relevant revenue steams the QCOM could derive based on their respective contracts with phone makers/suppliers.And the conclusion was the worse that could happen was for Motorola to produce the ASIC chips for Q. This is because Motorola has the lowest contact cost with QCOM. This contract was formed in the earlier days when QCOM was still relatively a new company, so they gave Motorolla a good deal. There could be other reasons for it as well; bringing this issue forward, Mot and QCOM are now in litigation about this contact.If Q doesn't succeed to ammend this low price contract, then everyone using MOT's chips will pay less money.Incidentally, only when the software is implimented in the chips will phone manfacturers have to pay a royalty.
CNBC strikes again.The last line of the wire news story reads:"Developing the chip first won't pay dividends for Motorola for two to three years, but "that in no way discounts or diminishes the advantage of being first market," MOT has been terrible at keeping their "newest and greatest" on schedule. Hopefull theymay change that now . . . :-)Robert
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