InterDigital Inc (IDCC)

[NukeJohn]

IDCC is a key element of the "mobile internet tsunami" (as Jim Cramer likes to say). IDCC will benefit greatly, both from existing licensees who are growing market share (at Nokia's expense) and from new licensees like Acer (and all those other companies who will be selling tablets to compete with the IPad).

I think the LTE rate in any new LTE/4G license is one of the key things to watch out for (but it's doubtful we learn any specifics on the LTE license rate). Before the recent ZTE report came out, I was thinking IDCC would be happy to settle for 1.2 - 1.5% on LTE/4G. But if IDCC has a dominant position in LTE/4G Intellectual Property as both ZTE and Informa have reported, I see no reason why they should not be pursuing a rate in the same ballpark as Qualcomm (3.25%). IDCC may not get anywhere near QCOM's rate, but what is wrong with them pursuing a rate of 2% or more.

Here is the pie chart that ZTE put out recently, where they think that IDCC has 24% (13% + 11%) of the essential LTE patents and QCOM only has 13%.