Qualcomm 2002 Annual Report Download - page 28

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CUMULATIVE U.S. PATENTS AND
APPLICATIONS
ISSUED TOTAL
January 1999 245 815
January 2000 388 1,264
January 2001 531 1,582
September 2002 888 2,451
EXTENSIVE INTELLECTUAL PROPERTY
QUALCOMM owns patents that are essential to all
CDMA wireless standards. To date, the Company
has more than 2,400 U.S. patents and patent appli-
cations applicable to CDMA and other technologies.
Through the efforts of QUALCOMM Technology
Licensing (QTL), the Company has licensed its
essential CDMA patent portfolio to more than 115
telecom equipment and consumer electronics
manufacturers worldwide.
QUALCOMM earns revenues from license fees
and royalties collected for the use of its intellectual
property. This high-margin business accounted for
over 62 percent of the Company’s pro forma earn-
ings before taxes in fiscal 2002.
This year the Company added the last two remaining
major wireless infrastructure equipment manufac-
turers to its list of 3G licensees.
An agreement with Siemens covers 3G WCDMA/
UMTS and TD-SCDMA infrastructure and
subscriber equipment.
An agreement with Alcatel covers 3G WCDMA/
UMTS and TD-SCDMA infrastructure equipment.
QUALCOMM TECHNOLOGY LICENSING (QTL)
QTL generates revenue from license fees for our
CDMA (e.g., cdmaOne, CDMA2000, WCDMA/UMTS
and TD-SCDMA) technologies and patents as well
as ongoing royalties based on worldwide sales by
licensees that design, manufacture and sell products
incorporating our CDMA technology. QTL revenues
comprised 28 percent, 29 percent and 22 percent
of total consolidated GAAP revenues for QUALCOMM
in fiscal 2002, 2001 and 2000, respectively.
QUALCOMM HAS AGREEMENTS THAT ENABLE
THE COMPANY TO EARN ROYALTIES ON ALL 3G
CDMA TECHNOLOGIES
CDMA2000 1X
CDMA2000 1xEV-DO
CDMA2000 1xEV-DV
WCDMA/UMTS
TD-SCDMA
QUALCOMM HAS SIGNED OVER 55
BILATERAL WCDMA/UMTS AGREEMENTS WITH
THE WORLD’S LEADING MANUFACTURERS
QUALCOMM’S INNOVATIVE PATENT PORTFOLIO
PROVIDES A GROWING REVENUE STREAM THAT
SERVES AS A SOLID FOUNDATION FOR GROWTH