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To: Bill Wolf who wrote (158516)6/14/2019 8:17:18 AM
From: Bill Wolf
   of 165148
 
Explainer: Why is Huawei seeking $1 billion patent deal with Verizon?
By Jan Wolfe
Reuters14 June 2019

By Jan Wolfe

WASHINGTON (Reuters) - Huawei is demanding Verizon Communications Inc pay $1 billion to license the rights to patented technology, signaling a potential shift in the embattled Chinese company's strategy for the U.S. market.

A Huawei executive made the demand in a February letter, a person briefed on the matter told Reuters. The Wall Street Journal first reported on the letter on Wednesday. The fee would cover licensing of more than 230 patents.

Verizon spokesman Rich Young declined to comment “regarding this specific issue because it’s a potential legal matter.”

However, Young said, “These issues are larger than just Verizon. Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and international concerns.”

Huawei did not respond to a request for comment.

The following explains why the patent dispute is not unusual and how it could be resolved.

How common is patent licensing?


Patent licensing is very common, particularly in complex industries like telecommunications. As technology has advanced, it has become harder to avoid violating — or "infringing" — patent rights. There are millions of U.S. patents in force, and a typical smartphone implicates hundreds of thousands of them.

Companies like Apple Inc, Nokia Inc and Qualcomm Inc own many thousands of patents issued by governments around the world.

It is not unusual for these firms to try to make money from their massive patent portfolios. Nokia, for example, routinely brings in more than $1 billion a year from licensing its patents to others.

Large companies like Verizon will try to identify patents they might be violating, said Gaston Kroub, a patent lawyer in New York. But that can be a challenge because so many patents are granted every year, Kroub said.

"Sophisticated companies like Verizon understand that they could be approached by licensors of any stripe at any time," Kroub said. The philosophy of wireless carriers and smartphone companies, Kroub said, can be "let's deal with these claims as they arrive, because we don't know who will knock on our door next."

Tom Cotter, a professor of patent law at the University of Minnesota, said it was possible Huawei executives believe Verizon has been infringing their U.S. patents for some time but for business reasons waited until now to seek compensation.

Patent owners "may not enforce their patents for a period of time, but they can choose do to so whenever they want to," Cotter said. "It happens all the time."

What happens if Verizon does not pay?

Huawei may end up going to a U.S. court and suing Verizon for alleged patent infringement.

While some licensing disputes are resolved without lawsuits, litigation is fairly common. Huawei and Samsung Electronics Co recently settled a global legal battle on confidential terms.

A defendant in a patent case typically argues that it does not actually infringe the asserted patents, or that they were mistakenly issued and should be revoked.

In a lawsuit, a patent owner can ask a judge to block sales of infringing products. While such injunctions are rarely granted in the United States, the threat of one can motivate a defendant to settle with the patent owner.

Legal experts said Huawei is likely prepared to go to court.

"I don't know how you can make a demand of $1 billion and not be prepared for the answer to be no, at least at first, and for the need to litigate," Kroub said.

Has Huawei been an aggressive enforcer of its patents?

Huawei has long been known for defending itself against U.S. patent infringement claims, rather than bringing them. But that could be changing.

George Koomullil, a patent analyst at Pleasanton, California-based technology company Relecura, said that 10 or 15 years ago Huawei applied for a relatively modest number of patents. But the company has been more aggressive about applying for patents since around 2007, and particularly in recent years, Koomullil said.

Huawei may be more inclined to monetize its U.S. patents now that the U.S. government has limited its ability to sell products in the country, Kroub said.

The National Defense Authorization Act last year placed a broad ban on the use of federal money to purchase products from Huawei, citing national security concerns.

Last month, the Trump administration banned Huawei from buying vital U.S. technology without special approval and effectively barring its equipment from U.S. telecom networks.

Kroub said Huawei's licensing demand could reflect a "desperation to come up with ways of generating revenue in the U.S. market, especially considering the traditional ways of offering products and selling things to business is closed to them."

Franklin Turner, a government contracts lawyer at McCarter & English in Washington, said the patent licensing demand may also be a way for Huawei to "retaliate" against the United States.

Republican Senator Marco Rubio said on Twitter on Thursday that the demand against Verizon was an "attempt by (Huawei) to retaliate against the U.S. by setting the stage for baseless, but costly, patent claims."

(Reporting by Jan Wolfe; Additional reporting by David Sherpardson and Karen Freifeld; Editing by Cynthia Osterman)

in.finance.yahoo.com

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From: Bill Wolf6/14/2019 8:31:57 AM
1 Recommendation   of 165148
 
The current U.S./China clash is about telecom supremacy.

The U.S. has decided that it needs to contain China, and its great comparative advantage is technology. They’re going to take Huawei down. That could really turn around and—excuse my French—bite you in the ass. If Apple can’t produce in China, or can’t sell what it produces in China back to the U.S., or if China starts blockading its product, you’ve destroyed one of your biggest companies. Samsung Electronics [5930.Korea] will pick up the pieces. Technology is one of the biggest parts of the U.S. stock market. U.S. investors are as exposed to U.S. stocks as they were in 1999. The big difference between then and today is that the average U.S. investor is much older. When you’re 30 years old, a bear market gives you the opportunity to buy more stocks cheaply. When you’re 65, it is more problematic. There will be casualties in tech at a time when you can’t really afford a bear market. I like to make the comparison with the Battle of Agincourt, where the French had five times as many troops as the English and were so sure of our superiority, and the English slaughtered us.

siliconinvestor.com

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To: Bill Wolf who wrote (158509)6/14/2019 8:39:59 AM
From: Bill Wolf
   of 165148
 


Apple rumoured to be buying Intel's 5G tech
by Nick Farrell on14 June 2019

fudzilla.com

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From: Bill Wolf6/14/2019 8:46:46 AM
1 Recommendation   of 165148
 
Chip demand for 5G phones ramping up
Cage Chao, Taipei; Jessie Shen, DIGITIMES
Friday 14 June 2019

Taiwan-based IC design houses have seen brand handset vendors slow down their pace of orders for 4G models, but start ramping up demand for new-generation 5G devices, according to industry sources.

digitimes.com

5G commercial runs immune to trade war, says Accton president
Aaron Lee, Taipei; Willis Ke, DIGITIMES
Friday 14 June 2019

The US trade sanctions on Huawei will not slow down global 5G commercial launches, as telecom operators worldwide are still regularly moving to build communications networks though they may change suppliers of telecom equipment, according to CC Lee,...

digitimes.com

Highlights of the day: Optimism for 5G development
DIGITIMES staff
Friday 14 June 2019

The US ban on Huawei does not seem to have dampened the industry players' interests in 5G, with many still expecting explosive growths to come soon. Handset vendors remain as keen as ever on rolling out 5G smartphones sooner rather than later. The networking/communications device sector also remains optimistic about 5G. In Taiwan, development of the 5G sector has received a boost from a multi-million US dollar government plan.

Chip demand for 5G phones ramping up: Taiwan-based IC design houses have seen brand handset vendors slow down their pace of orders for 4G models, but start ramping up demand for new-generation 5G devices, according to industry sources.

5G commercial runs immune to trade war, says Accton president: The US trade sanctions on Huawei will not slow down global 5G commercial launches, as telecom operators worldwide are still regularly moving to build communications networks though they may change suppliers of telecom equipment, according to CC Lee, president of Taiwan-based Accton Technology, a provider of networking and communication solutions.

Taiwan government to spend NT$20.4 billion on 5G development in 2019-2022: Taiwan's government has approved a budget of NT$20.4 billion (US$647.72 million) for facilitating the development of various value-added and verticalized application services under the 5G networks in the next four years, according to officials.

digitimes.com

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From: Bill Wolf6/14/2019 8:55:39 AM
   of 165148
 
With the US trade ban, Huawei’s wholly owned chip design company, HiSilicon, is anticipated to supply alternative semiconductor products, from those provided by the likes of Qualcomm and Intel Corp, for use in Huawei’s smartphones and network equipment. Huawei is now looking to boost production of its own Kirin chipsets and roll out its “Hongmeng” operating system to replace Google’s Android.

scmp.com

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From: Bill Wolf6/14/2019 9:09:45 AM
   of 165148
 
Tech Players Confront Long List of Challenges in U.S.-China Trade Fight
At the WSJ Tech D.Live conference, top investors and company leaders emphasize how unpredictable the global economy has become
By Timothy W. Martin
June 14, 2019 8:54 a.m. ET

HONG KONG—The U.S.-China feud is challenging the technology industry in areas including financial deals, supply chain and talent recruitment, though some players are finding bright spots, executives said on Friday.

At The Wall Street Journal’s WSJ Tech D.Live conference, top investors and company leaders in the industry emphasized how unpredictable the global economy has become as Washington and Beijing battle over trade and technological dominance.

“Quite frankly, right now the list of things to be very worried about is long—longer than it’s actually ever been in my career,” said Jennifer Nason, global chairman of investment banking at JPMorgan Chase & Co. “Some of it is pretty scary stuff.” She said the uncertainty has made it trickier for some company boards to feel confident about taking on big deals.

The U.S. last month put Huawei Technologies Co. on a trade blacklist that bars sales of components to China’s leading producer of smartphones and telecom equipment without a Commerce Department license. That move has created pain for some tech suppliers, including Micron Technology Inc., one of the world’s largest makers of memory chips.

Huawei is one of Micron’s biggest customers, and the U.S. action against the Chinese company has brought uncertainty and some turbulence to the semiconductor industry, Micron Chief Executive Sanjay Mehrotra said at Friday’s conference.

The Boise, Idaho-based company is conducting a legal review of what can or can’t be shipped to Huawei, Mr. Mehrotra said. He didn’t specify the financial impact of the export ban, saying he would do so later this month on Micron’s earnings call.

“We will always focus on following the laws and regulations,” Mr. Mehrotra said. “However, there are details to be pursued and to be studied. That’s what our team continues to do.”

Another U.S. chip company, Broadcom Inc., said Thursday that it would make $2 billion less in annual sales than expected as a result of Washington’s export restrictions on Huawei, news that sent shares in Broadcom and other chip companies lower.

Kyum Kim, co-founder and head of U.S. operations for Teamblind, said the trade fight hasn’t directly affected the South Korean startup. But the battle has colored discussions on its anonymous forums.

In a recent survey of its users, Chinese citizens reported that they felt threatened by the trade dispute. “Chinese nationals were actually feeling threatened by the trade war, especially in hardware companies like Qualcomm , ” Mr. Kim said.

Others are seeing some new opportunities despite the cloud created by the U.S.-China fight—or even because of it.

The tensions are benefiting China in that tech professionals and investment that might have gone from China to the U.S. is returning home, said Ben Harburg, managing director of MSA Capital. “There’s a lot more talent coming to China now that would’ve stuck around the U.S. previously,” he said.

One Chinese tech company doing well in the U.S. despite the bilateral strains is Bytedance Ltd., whose TikTok video app has soared in popularity among American users.

Jared Grusd, chief strategy officer at social-networking company Snap Inc. said Bytedance is one of the first China-based companies to scale its consumer platform in the U.S. and other parts of the world. “Their ability to chime consumer awareness outside of its core market is really interesting,” he said.

Smartphone sales have cooled as consumer spending pulled back because of global economic concerns over Beijing and Washington’s protracted trade disagreement. But Samsung Electronics Co. saw strong initial demand for its 5G-enabled handset, an optimistic sign for the next-generation mobile network.

Samsung started selling a 5G variant of its Galaxy S10 phone in April in South Korea.

“The initial response we got was overwhelming,” said Junehee Lee, who heads Samsung’s technology strategy team. “It’s surpassing any expectations we may have had.”

Write to Timothy W. Martin at timothy.martin@wsj.com

wsj.com

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From: benhorseman6/14/2019 10:48:43 AM
   of 165148
 
countingpips.com

Analysis: Will court ruling against Qualcomm weigh on its stock?

June 14, 2019
By IFCMarkets

Will the court ruling against Qualcomm continue weighing on its stock?

Analysts estimate the negative impact from court’s decision will be limited on Qualcomm. Will the Qualcomm stock price continue rebounding?

Qualcomm is the world’s biggest producer of mobile phone chips and the leader in 5G tech. Its stock dropped 12%, the biggest fall in more than two year, on May 22 after a federal judge ruled against Qualcomm in a dispute with the U.S. Federal Trade Commission, finding that the company used its dominant position to harm competition and charge smartphone makers excessive licensing fees. Before that Qualcomm stock rallied over 50% after the chip giant came to a settlement with Apple, granting Qualcomm licensing rights while becoming the 5G supplier for iPhone. Qualcomm released second quarter earnings in the beginning of May, reporting higher profit while revenue fell to $4.88 billion, but beat analysts’ estimates of $4.80 billion. The company forecast $1.23 billion to $1.33 billion in revenue for its licensing business in the third quarter, above analysts’ consensus forecast of $1.22 billion.

While Qualcomm will be appealing the ruling, analysts point that the negative impact from court’s decision will be limited as the company prepares for rollout of 5G mobile phones as the year ends. The next earnings statement is scheduled for July 24. The continued US-China trade dispute remains the major downside risk for Qualcomm.

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On the daily timeframe the S-QCOM: D1 is rising above the 200-day moving average MA(200) and Fibonacci 61.8. It is also above the support line. These are bullish developments.

The Parabolic indicator has formed a buy signal.The Donchian channel indicates uptrend: it is tilted up.The MACD indicator gives a bullish signal: it is below the signal line and the gap is narrowing.The RSI oscillator is rising but has not reached the overbought zone yet.We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 72.17. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the fractal low at 64.75. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (64.75) without reaching the order (72.17), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary
PositionBuy
Buy stopAbove 72.17
Stop lossBelow 64.75

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To: Bill Wolf who wrote (158547)6/14/2019 1:20:00 PM
From: Bill Wolf
   of 165148
 
Corrected link below:

Message 32197817

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To: Bill Wolf who wrote (158547)6/14/2019 1:49:21 PM
From: NozRydr
3 Recommendations   of 165148
 
The current U.S./China clash is about telecom supremacy.

The U.S. has decided that it needs to contain China, and its great comparative advantage is technology. They’re going to take Huawei down. That could really turn around and—excuse my French—bite you in the ass. If Apple can’t produce in China, or can’t sell what it produces in China back to the U.S., or if China starts blockading its product, you’ve destroyed one of your biggest companies. Samsung Electronics [5930.Korea] will pick up the pieces. Technology is one of the biggest parts of the U.S. stock market.


Ok, that right there? I don't care who you are. That's funny.

a) Making as if Apple is a tech company upon whom telecom supremacy depends. (see "Nokia 1998)
b) Making as if telecom supremacy is fundamentally about things like consumer trinkets floating on top of a deep sea of telecom infrastructure.

But I could be missing something and laughing in ignorance. After all I still haven't grokked the import of Apples patent on the rectangle.

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From: frmrVZguy6/14/2019 3:51:39 PM
   of 165148
 
ODM orders to BRCM/AVGO shifting to new fab locations temp'ry 'interruption' to resume soon.

Buy opportunity.
AVGO is now a USA domicile.
Shipments halted to PRC.
This is a logistical adjustment as alternate fabs spin up.

A second possibility mixed into the PRC quagmire is India financial and accounting scandal putting assets under question and 'hold'
Also temporary.
'Playahs' gonna play

Opportunities sometimes look like someone else's losses.
IMO
GLTA

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