...REPORT IN A NUTSHELL...

Understanding Intellectual Property

A Key to Making Money in Wireless Investments

In the last 18 months, consumers around the world will have been seeing stunning new cell phones and other wireless communications devices. They will see built in cameras, amazing color screens, and "always on" Internet capability. Laptop computers will be connected wirelessly to the Internet. Investors will be enthused with the new products and decide to buy some stock in the device manufacturers: Nokia (NYSE:NOK), Motorola (NYSE:MOT), Ericsson (NASDAQ:ERICY), Siemens (NYSE:SI) or others. That might be a good idea. Or maybe, invest in companies that supply components to these amazing new devices. Perhaps Texas instruments (NYSE:TXN) or Infineon Technologies' (NYSE:IFX) chip-making prowess is the way to invest. Or the makers of the color screens, the sound system, the antenna or the memory. Some research should lead the investor to the maker of the components inside the cell phone device.

Very few investors will research beyond that. It won't occur to them to go any deeper, or if it does, they will not know how to get at the very heart of that snazzy new wireless communication device. What a shame! That's where investors can make the most money in today's very difficult investing environment. The key is investing in the heart of the product -- what can't be seen by others but which is absolutely essential to the wireless product! It is called "intellectual property." A company that holds the patents on the technology that makes the components work (and therefore makes the device work) is said to own the "intellectual property rights" (g) or the "IPR." The especially astute investor in wireless communications will dig far deeper than product manufacturers and component suppliers for wireless investing. In the future, the persistent investors who research the firms which own the intellectual property (patented technology) at the heart of the new wireless devices will be recognized as the investment geniuses of the first decade of our new century.