InterDigital Inc (IDCC)

[olddog967]

Fish: Based on the following information, it would appear that MSFT’s contingent liability reserves relative to their IDCC litigation, may be a lot smaller than many posters believe is due IDCC.

Your quote from MSFT's 10-K was that as of June 30, 2014, MSFT had accrued aggregate liabilities of $780 million in other current liabilities and $81 million in other long-term liabilities for all of our legal matters that were contingencies as of that date (total of $861 million}.

The 10-K also stated that “Substantially all changes from the prior quarter in these accruals and estimates are attributable to matters involving Nokia that we assumed as a result of the NDS acquisition.” MSFT’s 10-Q for the prior quarter ending March 31, 2014, reported accrued aggregate liabilities of $406 million in other current liabilities and $103 million in other long-term liabilities for all legal matters that were contingencies as of that date (total of $509 million). Therefore, the increase due to the Nokia acquisition would appear to be approximately $352 million ($861-$509). As the previous Nokia 20F annual reports listed other cases besides IDCC, there is no telling how much of the $352 million was attributable to IDCC

As noted, the recorded amounts cover all legal matters that were considered as contingencies. In this regard, MSFT’s 10-K, in their comments on contingencies, stated that ln addition to the specific cases discussed, “there are approximately 90 other patent infringement cases pending against Microsoft.”