Qualcomm 2011 Annual Report Download - page 15

MEMS technology, Brew products and other technologies.
We have research and development centers in various locations throughout the world that support our global development activities and
ongoing efforts to advance CDMA, OFDMA and a broad range of other technologies. We continue to use our substantial engineering resources
and expertise to develop new technologies, applications and services and make them available to licensees to help grow the communications
industry and generate new or expanded licensing opportunities. In addition to internally sponsored research and development, we perform
contract research and development for various government agencies and commercial contractors.
Sales and Marketing
Sales and marketing activities of our operating segments are discussed under Operating Segments. Other marketing activities include public
relations, advertising, web-marketing, participation in technical conferences and trade shows, development of business cases and white papers,
competitive analyses, industry intelligence and other marketing programs, such as marketing development funds with our customers. Our
Corporate Marketing department provides company information on our internet site and through other media regarding our products, strategies
and technology to industry analysts and for publications.
Competition
Competition to our operating segments is discussed under Operating Segments. Competition in the communications industry throughout the
world continues to increase at a rapid pace as consumers, businesses and governments realize the potential of wireless communications products
and services. We have facilitated competition in the wireless communications industry by licensing and enabling a large number of
manufacturers. Although we have attained a significant position in the industry, many of our current and potential competitors may have
advantages over us, which include, among others: motivation by our customers in certain circumstances to find alternate suppliers or choose
alternate technologies; and government support of other technologies (e.g., GSM) or our competitors. In addition, our competitors may have
established more extensive relationships with indigenous distribution and original equipment manufacturer companies in developing territories
(e.g., China). These relationships may affect customers’ decisions to purchase products or license technology from us. Accordingly, new
competitors or alliances among competitors could emerge and rapidly acquire significant market share to our detriment.
We may face competition throughout the world with new technologies and services introduced in the future as additional competitors enter
the business for products based on 3G standards, OFDMA-based technologies or other technologies. Although we intend to continue to develop
improvements to existing technologies , as well as potential new technologies, there may be a continuing competitive threat from companies
introducing alternative versions of technologies. It is also possible that the price we charge for our products and services may continue to decline
as competition continues to intensify.
Patents, Trademarks and Trade Secrets
We rely on a combination of patents, copyrights, trade secrets, trademarks and proprietary information to maintain and enhance our
competitive position. We have an extensive portfolio of United States and foreign patents, and we continue to pursue patent applications around
the world. Our patents have broad coverage in many countries, including China, Japan, South Korea, Europe, Brazil, India, Taiwan and
elsewhere. A substantial portion of our patents and patent applications relate to digital wireless communications technologies, including patents
that are essential or may be relevant to CDMA2000, WCDMA (UMTS), TD-SCDMA, TD-CDMA and OFDMA products.
Standards bodies have been informed that we hold patents that might be essential for all 3G standards that are based on CDMA. We have
committed to such standards bodies that we will offer to license our essential patents for these CDMA standards on a fair and reasonable basis
free from unfair discrimination. We have also informed standards bodies that we hold patents that might be essential for certain standards that
are based on OFDMA technology (e.g., 802.16e, 802.16m and LTE (including FDD and TDD versions)) and have committed to offer to license
our essential patents for these OFDMA standards on a fair and reasonable basis free from unfair discrimination.
Since our founding in 1985, we have focused heavily on technology development and innovation. These efforts have resulted in a leading
intellectual property portfolio related to, among other things, wireless technology. Because all commercially deployed forms of CDMA and their
derivatives require the use of our patents, our patent portfolio is the most widely and extensively licensed portfolio in the industry with over 200
licensees. Over the years a number of companies have challenged our patent position but at this time most, if not all, companies in the industry
recognize that any company seeking to develop, manufacture and/or sell products that use CDMA technologies will require a license or other
rights to use our patents.
As part of our strategy to generate licensing revenues that continue to support our research and development investments and support
worldwide adoption of our CDMA technology, we provide rights to design, manufacture and sell products utilizing certain portions of our
intellectual property to other companies, including those companies listed on our Internet site
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