QUALCOMM Responds to Reports of Complaints Filed by Competitors With the European Commission

QUALCOMM Believes Claims Are Meritless



Oct 28, 2005, 01:00 ET from QUALCOMM Incorporated

    SAN DIEGO, Oct. 28 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated
 (Nasdaq: QCOM) today stated that, although it has not seen the actual
 complaint, the reported allegations made to the European Commission are
 factually inaccurate and legally meritless.  The accusation that QUALCOMM has
 not lived up to its commitments to standard-setting organizations to license
 its essential patents on fair and reasonable terms is belied by the more than
 130 licenses that QUALCOMM has granted to a broad range of companies, among
 them five of the six reported claimants (for a complete list of QUALCOMM's
 licensees, visit www.qualcomm.com/technology/licensing).  These licenses,
 including agreements with the world's largest and most sophisticated
 manufacturers of wireless telecommunications equipment, make QUALCOMM's
 patents the most extensively licensed portfolio in the cellular industry.  The
 widespread market acceptance of QUALCOMM's licensing program conclusively
 demonstrates that QUALCOMM's licensing practices are fair, reasonable and pro-
 competitive.
     QUALCOMM disagrees with any suggestion that it has contributed less
 significant technology to the WCDMA 3G standard.  Indeed, it is widely
 acknowledged that efforts to design around QUALCOMM's fundamental innovations
 in formulating the UMTS/WCDMA standard were unsuccessful.  It is especially
 ironic that the complaints are being lodged by suppliers who voluntarily
 entered into license agreements with QUALCOMM, acknowledging its leading WCDMA
 patent portfolio.  This action appears to be nothing more than an attempt by
 these licensees to renegotiate their license agreements by seeking
 governmental intervention.
     QUALCOMM has granted and announced far more licenses than any other
 company claiming to hold patents essential to the CDMA2000, WCDMA or TD-SCDMA
 standards.  QUALCOMM's extensive licensing program has fostered the widespread
 adoption of leading-edge technologies and promoted vibrant competition
 throughout the wireless industry, encouraging innovation and technological
 advancement.  Contrary to the reported allegation that QUALCOMM is seeking to
 exclude chip competitors, QUALCOMM has licensed major chip manufacturers,
 including Texas Instruments, NEC, Infineon, Philips, Agere, Motorola, VIA and
 Fujitsu.
     "We are proud that our licensing program has enabled many new entrants to
 design innovative wireless devices and compete in the 3G marketplace," said
 Dr. Paul E. Jacobs, chief executive officer of QUALCOMM.  "It is not
 surprising that the reported allegations come largely from entrenched 2G
 suppliers who have the most to lose from the enhanced and expanded competition
 in 3G created by QUALCOMM's widespread licensing and supply of enabling 3G
 technology, chipsets and software.  The many new handset market entrants,
 working in cooperation with QUALCOMM, threaten the market shares of these
 entrenched manufacturers and their component suppliers.  We welcome the
 opportunity to demonstrate these facts in an open and public process."
     "It is ironic that these companies claim that QUALCOMM's behavior has
 harmful effects for the mobile telecommunications sector when the facts are
 completely contrary.  In fact, the average selling price of WCDMA handsets is
 declining, and WCDMA subscriber uptake is increasing - each at a faster rate
 than GSM experienced during its early commercial years," said Steve Altman,
 president of QUALCOMM.
     Unlike GSM, where there are a small number of entrenched suppliers, the
 WCDMA market enjoys healthy competition among many handset suppliers,
 including companies from Korea, Japan, China, the United States and Europe as
 a result of QUALCOMM's proactive licensing of its substantial R&D investments
 and the widespread availability of chipsets and software from QUALCOMM and its
 licensees.
     The allegations regarding royalty discounting, while misleading, are
 simply complaints about legitimate and lawful price competition, which is good
 for manufacturers, operators and especially consumers.  QUALCOMM has never
 made the purchase of its chips a condition of granting a license.
     QUALCOMM will vigorously defend against any claim of unlawful conduct in
 its licensing or chipset sales practices.
 
     QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and
 delivering innovative digital wireless communications products and services
 based on CDMA and other advanced technologies.  Headquartered in San Diego,
 Calif., QUALCOMM is included in the S&P 500 Index and is a 2005 FORTUNE 500(R)
 company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.
 
     Except for the historical information contained herein, this news release
 contains forward-looking statements that are subject to risks and
 uncertainties, including the Company's ability to successfully design and have
 manufactured significant quantities of CDMA components on a timely and
 profitable basis, the extent and speed to which CDMA is deployed, change in
 economic conditions of the various markets the Company serves, as well as the
 other risks detailed from time to time in the Company's SEC reports, including
 the report on Form 10-K for the year ended September 26, 2004, and most recent
 Form 10-Q.
 
     QUALCOMM is a registered trademark of QUALCOMM Incorporated. CDMA2000 is a
 registered trademark of the Telecommunications Industry Association (TIA USA).
 All other trademarks are the property of their respective owners.
 
     QUALCOMM Contacts:
     Christine Trimble, Corporate Communications
     Phone: 1-858-651-3628
     Email: corpcomm@qualcomm.com
     or
     Bill Davidson, Investor Relations
     Phone: 1-858-658-4813
     Email: ir@qualcomm.com
 
 

SOURCE QUALCOMM Incorporated
    SAN DIEGO, Oct. 28 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated
 (Nasdaq: QCOM) today stated that, although it has not seen the actual
 complaint, the reported allegations made to the European Commission are
 factually inaccurate and legally meritless.  The accusation that QUALCOMM has
 not lived up to its commitments to standard-setting organizations to license
 its essential patents on fair and reasonable terms is belied by the more than
 130 licenses that QUALCOMM has granted to a broad range of companies, among
 them five of the six reported claimants (for a complete list of QUALCOMM's
 licensees, visit www.qualcomm.com/technology/licensing).  These licenses,
 including agreements with the world's largest and most sophisticated
 manufacturers of wireless telecommunications equipment, make QUALCOMM's
 patents the most extensively licensed portfolio in the cellular industry.  The
 widespread market acceptance of QUALCOMM's licensing program conclusively
 demonstrates that QUALCOMM's licensing practices are fair, reasonable and pro-
 competitive.
     QUALCOMM disagrees with any suggestion that it has contributed less
 significant technology to the WCDMA 3G standard.  Indeed, it is widely
 acknowledged that efforts to design around QUALCOMM's fundamental innovations
 in formulating the UMTS/WCDMA standard were unsuccessful.  It is especially
 ironic that the complaints are being lodged by suppliers who voluntarily
 entered into license agreements with QUALCOMM, acknowledging its leading WCDMA
 patent portfolio.  This action appears to be nothing more than an attempt by
 these licensees to renegotiate their license agreements by seeking
 governmental intervention.
     QUALCOMM has granted and announced far more licenses than any other
 company claiming to hold patents essential to the CDMA2000, WCDMA or TD-SCDMA
 standards.  QUALCOMM's extensive licensing program has fostered the widespread
 adoption of leading-edge technologies and promoted vibrant competition
 throughout the wireless industry, encouraging innovation and technological
 advancement.  Contrary to the reported allegation that QUALCOMM is seeking to
 exclude chip competitors, QUALCOMM has licensed major chip manufacturers,
 including Texas Instruments, NEC, Infineon, Philips, Agere, Motorola, VIA and
 Fujitsu.
     "We are proud that our licensing program has enabled many new entrants to
 design innovative wireless devices and compete in the 3G marketplace," said
 Dr. Paul E. Jacobs, chief executive officer of QUALCOMM.  "It is not
 surprising that the reported allegations come largely from entrenched 2G
 suppliers who have the most to lose from the enhanced and expanded competition
 in 3G created by QUALCOMM's widespread licensing and supply of enabling 3G
 technology, chipsets and software.  The many new handset market entrants,
 working in cooperation with QUALCOMM, threaten the market shares of these
 entrenched manufacturers and their component suppliers.  We welcome the
 opportunity to demonstrate these facts in an open and public process."
     "It is ironic that these companies claim that QUALCOMM's behavior has
 harmful effects for the mobile telecommunications sector when the facts are
 completely contrary.  In fact, the average selling price of WCDMA handsets is
 declining, and WCDMA subscriber uptake is increasing - each at a faster rate
 than GSM experienced during its early commercial years," said Steve Altman,
 president of QUALCOMM.
     Unlike GSM, where there are a small number of entrenched suppliers, the
 WCDMA market enjoys healthy competition among many handset suppliers,
 including companies from Korea, Japan, China, the United States and Europe as
 a result of QUALCOMM's proactive licensing of its substantial R&D investments
 and the widespread availability of chipsets and software from QUALCOMM and its
 licensees.
     The allegations regarding royalty discounting, while misleading, are
 simply complaints about legitimate and lawful price competition, which is good
 for manufacturers, operators and especially consumers.  QUALCOMM has never
 made the purchase of its chips a condition of granting a license.
     QUALCOMM will vigorously defend against any claim of unlawful conduct in
 its licensing or chipset sales practices.
 
     QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and
 delivering innovative digital wireless communications products and services
 based on CDMA and other advanced technologies.  Headquartered in San Diego,
 Calif., QUALCOMM is included in the S&P 500 Index and is a 2005 FORTUNE 500(R)
 company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.
 
     Except for the historical information contained herein, this news release
 contains forward-looking statements that are subject to risks and
 uncertainties, including the Company's ability to successfully design and have
 manufactured significant quantities of CDMA components on a timely and
 profitable basis, the extent and speed to which CDMA is deployed, change in
 economic conditions of the various markets the Company serves, as well as the
 other risks detailed from time to time in the Company's SEC reports, including
 the report on Form 10-K for the year ended September 26, 2004, and most recent
 Form 10-Q.
 
     QUALCOMM is a registered trademark of QUALCOMM Incorporated. CDMA2000 is a
 registered trademark of the Telecommunications Industry Association (TIA USA).
 All other trademarks are the property of their respective owners.
 
     QUALCOMM Contacts:
     Christine Trimble, Corporate Communications
     Phone: 1-858-651-3628
     Email: corpcomm@qualcomm.com
     or
     Bill Davidson, Investor Relations
     Phone: 1-858-658-4813
     Email: ir@qualcomm.com
 
 SOURCE  QUALCOMM Incorporated