InterDigital Inc (IDCC)

[loophole73]

There is only one real issue.

This board is cluttered daily about "ifs" and "buts". The real issue is the complete lack of understanding by IDCC of the manufacturing sector. Nobody wants to pay royalties, but they will and do on a consistent basis so long as they believe they are in the same boat with their competitors. Margin results are graded each year and are critical to the bottom line of manufacturers. IDCC continues to ignore the seriousness of MFL clauses for 2g and FRAND requirements for 3g. Hybrid licensing is a curse and will never allow the company to produce reliable future earnings forecasts beyond the quarter to quarter method they currently use.

Manufacturers want and need a level playing field in order to compete in the market. They want suppliers that they can trust and rely upon to not give a better deal to their competitors. They understand volume discounts, prepayment discounts and longer term discounts. They do not understand rate variances. They do not understand different base rates across the sector and an unwillingness on the part of a licensor to seriously pursue non paying competitors. QCOM has been successful because it has been consistent with its licensees and though unhappy with paying the royalty they feel they are all in it together.

Until IDCC sets a firm rate for all, lists firm discount opportunities, looks each potential licensee in the eye and tells them we will pursue all infringers to insure they are in the same boat, the company will continue to experience the choppy earnings history and incur needless legal fees as a part of operations. They must get away from the dry cleaning one day special at various locations pricing gimmicks and get with the program in the manufacturing industry. They must earn respect from their licensees and fear from the holdouts. Transparency and consistency will get them a lot more success than back door deals hidden behind the mantra of confidentiality. Consistency will also bolster the ability to pursue infringers hiding behind the FRAND fence.

I hope somebody at the ASM addresses this issue because I believe it is the corner stone for building shareholder value. The rest of the issues are just gimmicks easily confused and misunderstood.

MO
loop