Qualcomm 2006 Annual Report Download - page 36

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22 qualcomm 2006
qualcomm technology licensing (qtl)
With a licensing program that enables third
parties to design, manufacture and sell
products based on QUALCOMM’s industry-
leading wireless technology, our licensing
business model fosters a healthy and
competitive worldwide wireless marketplace.
Our inventions drive new revenue streams
for all our partners, enabling continuing
investments throughout the wireless
value chain.
While QUALCOMM has substantially grown
the number of its inventions over the years,
we make those innovations available to our
licensees without increasing the standard
royalty rate. Unlike many other companies,
we broadly license not only our essential
patents, but virtually all of our patents. As
a result, we enable our licensed partners to
bring exciting new features and functionality
to the wireless consumer.
Our licensing business fosters
healthy competition.
This model has served us well, rst in growing
the CDMA2000 marketplace. Now we are
also seeing steady growth in the number of
manufacturers selling a wide range of WCDMA
devices at increasingly competitive price points.
competition is key
Our strong belief in an open and free market-
place goes to the heart of our business. We
know from experience that where competition
is allowed to ourish, prices will go down, and
functionality and usage will increase. From
the inception of our company, QUALCOMM
has sought to stimulate competition by widely
licensing our technologies and promoting
innovation throughout our industry.
We have invested heavily in R&D, building one
of the most impressive intellectual property
portfolios in the industry. And through that
investment in technological advancement,
“We have earned commercial success through
innovation, technological leadership, years of hard
work, sustained R&D investment, and enabling
our licensee partners with our technology.”
marvin blecker, executive vice president and president,
qualcomm technology licensing