InterDigital Inc (IDCC)

[rmarchma]

Expiration dates of significant licenses listed in chronological order as follows (revised):

(1) Kyocera: Expired June 2009. $2.5m fixed per quarter for 5 years for CDMA2000. No indication of any paid-up provisions. Virtually certain that Kyocera renewed in the second quarter of 2010 as a per-unit license rather than fixed-fee.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52841500&txt2find=kyocera

(2) Casio Hitachi (CHMC): Expired June 2010 as a separate entity licensee. Signed in the first quarter of 2010 and expired June 30, 2010 into a joint venture with NEC. IDCC recognized $33.2m revenues ($29m past sales prior to 2010 and $4.2m for 2010) from CHMC during first half of 2010. In future quarters, CHMC's revenues will be combined with NEC's revenues and reported as a joint venture.

(3) Lucent: Expires October 2010. $700,000 fixed per quarter for 5 years for CDMA2000. No indication of paid-up provisions, so it will need to be renewed when license expires.

(4) LG: Expires at end of 2010. $14.25m fixed per quarter for 5 years for 2G/3G. The cash was received in 3 annual installments of $95m each, ending in 2008. Single-mode 2G will be paid-up when license expires, but 3G will need to be renewed. IDCC is at work already tring to renew the 3G/4G LG license per the latest 10K as follows:

"Expiration of the LG License

In December 2010, we will complete our amortization of $285.0 million of royalty revenue associated with our patent license agreement with LG. LG contributed approximately $57.5 million or 19% of our revenue in 2009. This license covers the sale of (i) terminal units designed to operate in accordance with 2G and 2.5G TDMA-based and 3G standards, and (ii) infrastructure designed to operate in accordance with cdma2000 technology and its extensions up to a limited threshold amount. Under the terms of the agreement, LG paid $285.0 million in three equal installments from 2006 through 2008. Upon expiration of the agreement, LG will receive a paid-up license to sell single-mode GSM/GPRS/EDGE terminal units under the patents included under the license, and become unlicensed as to all other products covered under the agreement.

We continue to place substantial focus on renewing agreements that have or will expire and expanding our patent licensee base, both with the top tier handset manufacturers and other market participants."


(5) Sharp: 2G PDC/PHS expires in April 2011, but virtually no current PDC revenues from this license. Per-unit license for 2G GSM and 3G standards have no fixed expiration date (license expires when last applicable patent expires).

(6) Samsung: Expires at end of 2012. $25.7m fixed per quarter for 4 years for 2G and 3G. 2G will be paid-up in 2010, but 3G will need to be renewed when license expires at the end of 2012. Samsung is paying a total of $400m in four six-month installments of $100m each, with the last installment payment due in July 2010.

(7) RIM: Expires at end of 2012. Nothing indicated about any paid-up provisions. Therefore, I assume that 2G and 3G will need to be renewed when the per-unit license expires, although 2G should be about gone by that point.

(8) Cinterion: a new license signed in 2009 that will expire at the end of 2012. From the latest 10K as follows:

"In third quarter 2009, we entered into a non-exclusive, non-transferable, worldwide, royalty-bearing, convenience-based, patent license agreement with Cinterion Wireless Modules GmbH covering the sale of Machine-to-Machine (“M2M”) modules and PC Cards designed to operate in accordance with 2G and 3G Standards for the period January 1, 2009 through the end of 2012."

(9) Apple: Expires June 2014. From all indications thus far, $2.14m fixed per quarter for 7 years for 2G and 3G. No indication of any paid-up provisions.

(10) NEC: per-unit license for 3G standards due to expire at the end of 2015. 2G has already expired. After June 30, 2010 will be combined into a joint venture with Casio Hitachi (CHMC).

(11) Pantech: Expires at the end of 2016. New fixed-fee licensee signed 9/21/09 that covers about everything: 2G, 3G, LTE, and Wi-Max/Bro. Either $111.5m or $121.5m will be earned over a 29 quarter period = $3.84m to $4.2m per quarter. Also there could be additional revenues if sales exceed a certain threshold amount. See my following linked post for additional details re the Pantech license:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47159046

(12) Panasonic (Matsushita): No expiration given or indicated for the per-unit 3G license. 2G is already paid-up.

(13) Toshiba: Per-unit license for 2G GSM and 3G have no fixed expiration date (license expires when last applicable patent expires). Paid-up for 2G PDC/PHS.

(14) HTC: Per-unit license for 2G and 3G with no given or indicated expiration date.

(15) Sierra Wireless: Per-unit license 2G and 3G with no given or indicated expiration date.