Qualcomm Provides IPR Position to ITU for Third-Generation Proposals

SAN DIEGO – October 13, 1998 – Qualcomm Incorporated (NASDAQ: QCOM) today announced it has submitted a letter to the International TelecommunicationsUnion (ITU) indicating that it holds essential Intellectual Property Rights(IPR) for several third-generation Radio Telecommunication Technology (RTT) proposals submitted for IMT-2000 based on Code Division Multiple Access (CDMA) technology.

In its letter, Qualcomm confirmed it is willing to license its IPR with respect to the cdma2000 proposal submitted by the U.S. Telecommunications Industry Association (TIA) on a non-discriminatory basis on reasonable terms and conditions in accordance with the ITU's patent policy. The letter also confirmed that Qualcomm is unwilling to similarly commit to license its IPR for the W-CDMA RTT proposals submitted by the European Telecommunications Standards Institute (ETSI) called UMTS Terrestrial Radio Access (UTRA) and its three derivatives; for the W-CDMA proposal submitted by Japan's Association of Radio Industries and Businesses (ARIB); for the CDMA II proposal submitted by Korea's Telecommunications Technology Association (TTA); and for the W-CDMA/NA proposal submitted by the U.S. T1P1-Wireless Mobile Services and Systems Technical Subcommittee. In the letter, Qualcomm stated it will notify the ITU of its IPR position with respect to the remaining candidate RTT proposals at a later time.

The ITU-R Task Group 8/1 is following a process to identify and recommend specific standards for the IMT-2000 radio interface. To date, several proposals have been submitted as candidates in accordance with this established process. However, pursuant to a letter issued by the ITU-R Director General on May 26, 1998, the ITU will not complete the process of evaluating and selecting submitted proposals unless all essential IPR holders for those proposals either waive all rights to their IPR, or commit to license their IPR on a non-discriminatory basis on reasonable terms and conditions in accordance with the ITU's patent policy. Patent policies are employed by standards bodies to avoid spending time and resources evaluating proposals that lack a clear path to commercialization.

Qualcomm supports achieving a single, converged standard for all proposed3G CDMA technologies that have been submitted to the ITU for consideration as candidates for IMT-2000. In August, Qualcomm clearly presented this position in a letter to the European Telecommunications Standards Institute (ETSI). In the letter, Qualcomm stated it holds essential IPR to ETSI's proposed RTT candidate submission and that Qualcomm would license its IPR only on fair, reasonable and non-discriminatory terms for standards meeting a set of technical criteria based on three fairness principles which support convergence of all proposed 3G CDMA technologies. The fairness principles are:

  1. A single, converged worldwide CDMA standard should be selected for 3G;
  2. The converged CDMA standard must accommodate equally the two dominant network standards in use today (IS-41 and GSM-MAP); and
  3. Disputes on specific technological points should be resolved by selecting the proposal that either is demonstrably superior in terms of performance, features, or cost, or, in the case of alternatives with no demonstrable material difference, the choice that is most compatible with existing technology.
"Qualcomm believes that all parties can and should work together toward a converged third-generation CDMA standard that treats existing investments fairly," said Dr. Irwin M. Jacobs, chairman and CEO, Qualcomm Incorporated

Headquartered in San Diego, Calif., Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geo stationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar™ low-earth-orbit (LEO) satellite communications system. Other Company products include the Eudora Pro® electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on Qualcomm products and technologies, please visit the Company's web site at http://www.qualcomm.com.

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Qualcomm, OmniTRACS, Eudora and Eudora Pro are registered trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated.