Seems like the transition to 3G networks all across the nation is causing such a legal ruckus that Qualcomm is continually under legal siege -- something that I've said before in posts. What is going on here? Basically, the rampant transition is causing dollar bill signs to pop up up legal offices everywhere.Qualcomm probably has the largest bullseye on its back yet, as the company that owns so much of the intellectual property to much of the 3G technology about to be in use is being sued left and right -- but it's fighting off the storm pretty well. I'm sure Qualcomm did see the day that its IP would be needed worldwide, but didn't know it would cost hundreds of millions in legal bills either.
1. I'm not sure that it's all about Qualcomm having a bullseye for it's IP.
All the lawsuits are for "excessive" licensing and royalty fees to mobile phone and infrastructure vendors. In particular, CDMA (IS-95, 1x, EV-DO) and WCDMA patents. You don't see anyone complaining about GSM phone royalty fees.
Another thing to note, many operators/carriers specifically did not select CDMA techonologies due to the high prices of the mobile units. In fact, CDMA version of the Motorola RAZR, makes very little money, one reason is because of the CDMA royalty fees.
Hence, another reason why GSM has 80% world wide market share.
Posted at 9:34AM on Nov 29th 2006 by Juan Deaton