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First, no one here has a clue. If something is happening we don't know what it is. That actually is a good thing. Loose lips sink ships and if a deal is comming, it will be a pleasent surprise.
Second, up on average volume normally doesn't get anyone excited. This is about supply and demand. Yesterday we had more buyers then sellers.
Avg Vol (3m): 628,550
29-Jul-04 18.09 19.09 18.07 19.01 695,100 19.01
We hit 19 a few days ago so that price was within our range.
20-Jul-04 18.32 19.08 18.25 18.97 761,600 18.97
Third, the Nokia factor. With six months to go for the arbitration hearing we will slowly climb up to $28 a share. This is the price that we have hit twice before and factors in Nokia settlement money. Right now we have almost no Nokia or Samsung money factored into the price.
Fourth, the Robertson/Carpenter factor. We have had two very good and very bullish analyst reports in the last couple of weeks. The stock was in the $17.50 range prior now it is $19+. These reports help to alow buyers to invest with confidence. Robertsons gave us the first Matrix into the stocks tremendous potential for 2005.
I was complete 3 buying opportunities ago.LOL.
NASDAQ right now is skizofrenic(have no idea how that is spelled). One day up next day down next day up.
Glad it is up today but anyone know why we are up so much?
Good work by Ronnie and Bob but I'm thinking Bob is closer.
I can't see an analyst putting out a bullish report with upgraded numbers 2 weeks before earnings and being off by much. NEC 3G numbers still a mystery but I don't see IDCC coming in under Robertson's $30.5 million revenue number.
Let's hope we get some selling opportunities.
" Pre announcing is not worth it unless for some unknown reason the stock was showing significant weakness."
I don't think that is what preannouncements are about. Each company who is covered by analysts have a responsibility both on the upside and the downside to give the analysts and investors preannouncements when the estimates are far off the predicted actuals. In the case of last quarter the estimates were very low and IDCC had to state that they would be off. If the estimates were high and IDCC missed they would also have to state this.
It is good policy to get material information out to the investment community ASAP. If earnings are not going to be substantially higher their is no need. Also estimates are higher this quarter then they were last quarter.
I really hope you are right about earnings projections.
Market is in punnishment mode. UTSI.
They missed by a penny and guided slightly lower on future earnings and WHAM a 25% haircut.
I'm glad the bar is set low.
Avg. Estimate 0.03
Avg. Estimate 29.70M
If we get Ronnies number and some good answers on the CC we should be able to hold. NASDAQ is in a "pissy" mood lately. Yesterday is great today was bad. Need a sustained high tech rally. Have not had this since January.
Hit 2140 then it has been all down hill all year long till 1850.
26-Jul-04 1,852 1,872.17 1,829.06 1,869.10 17,182,300 1,869.10
19-Jul-04 1,889 1,933.03 1,846.55 1,849.09 18,350,180 1,849.09
12-Jul-04 1,936 1,945.17 1,882.93 1,883.15 16,469,600 1,883.15
6-Jul-04 1,994 1,995.40 1,934.57 1,946.33 17,169,400 1,946.33
28-Jun-04 2,038 2,055.65 1,996.61 2,006.66 15,772,620 2,006.66
21-Jun-04 1,990 2,033.87 1,964.53 2,025.47 16,970,480 2,025.47
14-Jun-04 1,987 2,006.58 1,963.48 1,986.73 14,861,460 1,986.73
7-Jun-04 1,991 2,023.54 1,988.89 1,999.87 14,539,825 1,999.87
1-Jun-04 1,978 1,998.32 1,960.26 1,978.62 14,808,550 1,978.62
24-May-04 1,924 1,991.87 1,913.73 1,986.74 15,316,320 1,986.74
17-May-04 1,881 1,936.04 1,865.40 1,912.09 15,432,940 1,912.09
10-May-04 1,904 1,937.87 1,878.77 1,904.25 17,027,220 1,904.25
3-May-04 1,928 1,969.97 1,917.96 1,917.96 17,529,080 1,917.96
26-Apr-04 2,052 2,059.08 1,919.39 1,920.15 20,565,020 1,920.15
19-Apr-04 1,995 2,051.75 1,973.25 2,049.77 19,447,420 2,049.77
12-Apr-04 2,057 2,073.42 1,982.14 1,995.74 18,226,460 1,995.74
5-Apr-04 2,055 2,079.12 2,038.74 2,052.88 17,541,250 2,052.88
29-Mar-04 1,975 2,057.17 1,975.43 2,057.17 18,366,360 2,057.17
22-Mar-04 1,929 1,976.76 1,896.91 1,960.02 18,410,600 1,960.02
15-Mar-04 1,977 1,980.31 1,927.69 1,940.47 17,378,280 1,940.47
8-Mar-04 2,052 2,058.25 1,943.89 1,984.73 20,416,060 1,984.73
1-Mar-04 2,036 2,069.02 2,020.29 2,047.63 18,458,040 2,047.63
23-Feb-04 2,044 2,045.10 1,991.05 2,029.82 18,709,020 2,029.82
17-Feb-04 2,068 2,094.92 2,022.79 2,037.93 18,447,925 2,037.93
9-Feb-04 2,069 2,091.22 2,049.76 2,053.56 17,677,300 2,053.56
2-Feb-04 2,072 2,085.49 2,012.79 2,064.01 19,679,280 2,064.01
26-Jan-04 2,120 2,153.83 2,041.07 2,066.15 21,971,600 2,066.15
20-Jan-04 2,149 2,152.12 2,108.45 2,123.87 24,008,325 2,123.87
12-Jan-04 2,093 2,140.47 2,080.29 2,140.46 23,239,320 2,140.46
Good job on the estimates. I don't think any majors will come until after nokia arbitration. I do not beleive LG will sign until after the Samsung arbitration. SNE won't sign 3G until Nokia pays 2G. I don't think IDCC is even going after Motorola until Nokia is signed for 2G with the hope of crafting some sort of deal to bring in something for 2G.
Also Novatel or Nortel probably won't sign until LU suit is resolved.
With arbitration hearing dates under 6 months I don't see this as a big negative unless we get a delay. In reading the execellent work from our board attorneys, it seems as if the system is working. We can understand why the hearing date was set so far out, to deal with all the court motions. Arbitrators appear to have access to most of the documents needed with the exception of some of the SNE sales figures. Court seems to be acting swiftly when dealing with issues. Also, IDCC's appeal of the order to un-vacate does not seem to be related to the arbitrations panels document access. Meaning that they can still appeal the order while the arbitors review the documents.
My biggest worry over NEC is the announcement that LG will also be supplying Hutchingson with WCDMA handsets. I'm am hoping that LG does not affect NEC's market share and we have an unlicensed competitor affecting a licensed customers sales.
Last quarter they pre-announced on Friday, April 30th. After NEC, SNE, and SHARP reported. We could get it but I don't think so because of NEC's numbers. Hopefully they won't have much of a negative impact. It looks like it was a 2G issue and not a 3G issue.
From NEC's earnings release.
" This is mainly due to the fact that in the mobile terminal business, shipments of second generation mobile handsets for the Japanese market, which were especially popular during the previous year, decreased as compared with the corresponding period of the previous fiscal year."
In the mobile area, despite an
increase in sales in the mobile infrastructure business, as compared with the
corresponding period of the previous fiscal year, effected by infrastructure building for
the introduction of fixed-rate packet communications services, sales in the overall
mobile area decreased by 3%, amounting to 241.1 billion yen, as compared with the
corresponding period of the previous fiscal year. This is mainly due to the fact that in
the mobile terminal business, shipments of second generation mobile handsets for the
Japanese market, which were especially popular during the previous year, decreased as
compared with the corresponding period of the previous fiscal year. In the area of
social infrastructure, due to the saturation of demand for digital terrestrial broadcasting
systems in Japan sales decreased by 6%, amounting to 47.8 billion yen, as compared
with the corresponding period of the previous fiscal year.
Regarding profitability, despite the negative influence of a decrease in mobile handset
shipments, there was an improvement in profitability mainly seen in the broadband area
due to policies undertaken to reduce material costs and selling, general and
administrative expenses. This resulted in an increase in segment profit of 0.3 billion
yen, amounting to 10.9 billion yen, as compared with the corresponding period of the
previous fiscal year.
After reading Scot Robertson's report I have to now admit I like the current strategy.
Many times I have stated I wanted an LG law suit because of frustration over lack of major 3G signings.
But they way Robertson laid out a BLUE PRINT FOR SUCCESS and I've changed my mind about suing LG and now support the plan that IDCC is executing.
I still beleive that Nokia 2G is the DAMM holding other licenses back but once that breaks I now believe it will be a WATERSHED event.
If Nokia 2G rate gets set, SAMSUNG will have no choice but to accept the 2G rate.
Then a full court press on Ericsson may very well produce a Nokia 3G rate.
With Nokia having both a 2G rate and a 3G rate. Samsung will settle for Nokia's 3G rate and LG will accept Samsungs 2G and 3G rates.
That will leave Motorola and Siemens as the major handset vendors unsigned.
Now we get a LU law suit victory and NT follows with an infrastructure license.
No more suits or arbitrations and a boat load of settlement cash leaves F & J salivating at the chance to beat the crap out of Motorola in court.
2005 valuation = $63.63 a share.
Using Scot Robertsons sales numbers of $350 million I beleive that IDCC can obtain a share price of $65 next year.
I like to use a revenue vs. market cap to value equities. This allows me to understand what a company would be worth to a competitor on a buyout.
QCOM's market cap is $57.8 billion. Revenue last quarter was $1.18 billion. QCOM's revenue estimate next year is $5.59B.
It can be assumed that the market cap will equal 10 times revenue numbers.
$350M a year in sales would give IDCC a $3.5 Billion dollar market cap using this formula.
With 55 Million shares outstanding this gives us a 2005 target price of $63.63.
Sorry I don't have a link. I remember a post stating that Nokia included statements in their filings about a settlement offer to IDCC. It is on the board several times. If anyone remembers can they please repost.
Thanks mschere, I was refering to WCDMA and not CDMA2000.
I agree I just hope that IDCC is not losing any royalties due to expiration of statute of limitations.
IDCC is on a torrid pace this year as far as patents go. QCOM is 58 times the market cap and only produces 3 times the amount of patents. All these latest ones, from 2000 on will bear fruit for years to come. A patent has 17 years of life (I beleive?). I beleive IDCC will get paid in full for all 3G WCDMA.
TeeCee made some valid points about no 3G law suits because no 3G players have handsets sold in the US. Why sue in foreign courts. Wait until US 3G rolls out and if companies are not signed by then, sick the dogs on them. The LU case will be vital for 3G licensing. With NEC, Sharp, Sanyo and RIMM, IDCC has major 3G players under contract. The key will be Ericsson 3G. If IDCC wins Nokia 2G rate then Ericsson signs 3G the ducks will fall and game over. LG, SAMSUNG and Motorola must agree to a 3G rate similar to Ericsson, Nokia and NEC.
Sounds like Nokia's way of negotiating.
We already know that Nokia stated in their filing they offered IDCC a settlement. Nokia wants a smaller rate for 2G as well as 3G. They are playing hardball and offering low settlements (probably). IDCC needs to hold the line on 3G rates. That will be the cash cow for years to come. Imagine a year when all phones are 3G and IDCC receives 1% royalty accross the board.
In the meantime the arbitration fight is in full force. Nothing I've read this week discourages me one bit from thinking IDCC will come out with its .5% rate in tact. For me keeping the rate at .4% pre-pay and .5% will be a huge victory. Any past due royalties is just icing.
One Nokia and Samsung is settled, I beleive IDCC will trigger a Nokia 3G rate by signing Ericsson. That in turn will set the framework for Samsung 3G, LG 2G & 3G, Motorola 3G and lastly Siemens. 2005 sounds like it could finally be the year.
"Do you think LG will sign a 3G license with IDCC"
No I do not think LG will sign untill Samsung signs. Samsung needs the Nokia arbitration to finish.
I've wanted an LG suit for months. I may have been wrong or impatient. Right now arbitration needs to play out before any law suits start.
I seriously doubt Sony/Ericsson will help IDCC get LG signed.
I don't see any benefit to companies which have large 2G sales to sign until the Nokia situation is resolved.
The buying will come when the story plays out.
I hate to "nit pick" but IMO, Howard can sometimes be this stocks problem. Wall Street wants credibility. Howard occasionaly causes this credibility to be weak.
Case in point. Nokia arbitration causing licensing delays.
Everyone knows that this is the case. No way LG signs before SAMSUNG is settled. No way Ericsson signs 3G before Nokia 2G is settled. No way Motorola or Siemens come to the table before the arbitration is done. This is obvious to people who follow the story.
When Howard makes statements like the arbitration is not delaying licensing intiatives he is just plain wrong and hurts the credibility of the company. In answer to these type of questions I wish he would just go back to being vauge and evasive.
Second point. More "Economic Discussions then ever".
This gave Wall Street the indication that licenses were coming. I beleive the company needs to stay away from the license prediction business a.k.a Merritt guarentee by the end of 2003. It brings false hope to the investment community and when things do not pan out, disappointment.
At this point all management needs to do is let the numbers speak for themselves. According to the Robertson report this quarter will be great will profits and revenues beating forcasts. The blueprint is finally in place for investors to see this stocks potential.
Revenue projections.
When IDCC stated revenue projections this year it became a turning point for embracing the investment community. They set a bar in which all analysts and investors can judge. As licensees outperform or new licenees get signed the bar get raised and so should the stock price.
Robertson's license matrix.
This is absolutely the best information about IDCC yet. The matrix gives a clear and precise formula for success. Not only that but it outlines all the potential which this company should be able to achieve given the vast amount of IPR owned.
All that is needed is for licenees to perform and for Merritt to bring new ones into fold. My hope is from now until arbitration that Merritt focus on "low hanging fruit". e.g. Palmone, Novatel, BenQ, Ningbo Bird, companies that are small enough to feel that access to the patents and the technology will provide them will value.
I feel that this is the home stretch and that this next 6 months IDCCC will finally break out of this $15 to $28 trading range for good and never see under $30 again. I just don't want to see anyone from this team stick their foot in their mouth and screw this up with promises that are not delivered.
It is very obvious Scot Robertson did his homework this time. He researched both major 3G network players Hutchinson and NTT and tied the handset sales to the growth in subscription rates. He also has a much broader license base to deal with then in the past. Sony/Ericsson and Sierra wireless already reported large sales increases. We'll see how close he is next week when NEC reports.
A comment by management in 2001 when they were expecting high 2G rates does not hold water now.
It is very obvious that the 3G IPR is much stronger than the old 2G patents which have been weakened by court fights. The .5% rate from the Ericsson trial was not what anyone was expecting. It did however allow for IDCC to attempt to move past the 2G chapter and focus on 3G.
With the company flush with cash, 3G licenees performing well (NEC, SHARP & SANYO), 2G money flow (Ericsson/Sony) and RIMM, HTC and Sierra Wireless growing and starting to contribute nicely to the bottom, why would IDCC conced to a low 3G rate?
The rate would have to be something like .3% to be lower than the prepay .4% Sony/Ericsson rate.
I believe they will set the line at 1% and may discount down to .8% but it will be higher than the .4/.5% rate that Nokia is currently fighting. Also we may very well see a 3G handset law suit to accomplish this.
The new report is absolutely the best I've ever read on IDCC.
The level of detail explaining the market and IDCC potential is exceptional work.
The breakdown of 2005 revenues gives of a fill in the blanks potential of what we can expect in 2005.
Using Robertson's calculations on Motorola, Siemens and LG we can come up with possibly another $50 million a year.
Motorola - The average handset price of $150 this probably will be the hardest license to obtain. If we best case scenario 25% of their handsets to be royalty bearing and apply the Nokia .5% percentage we can come up with $18 million dollars a year.
Siemens - Average handset price $120 with 50% revenue bearing at .5% we can get $16 mil.
LG - Average handset price $145 with 65% revenue bearing (using Samsung numbers) at .5% nets $21 million.
SO a very bullish prediction of $400 million in revenues can be turned into a share price based on QCOM's market cap.
Qualcom had quarterly revenues of $1.1 billion and a market cap of $58 billion.
With the revenue projection of $100 million or 1/11th that of QCOM we can get 1/11 th of QCOM's market cap which is $5.2 billion dollars. Divide that by the 55 million shares we get a share price of $95.
Not a bad start. Then we go up in revenues as 3G adopts and the percentage charged migrates from .5% for 2G to 1% for 3G.
The biggest problem I have is the ability of Nokia to know Ericssons trade secrets. I can not beleive that Judge Lynn would leave Ericsson in such a vulnerable position as to allow its biggest competitor access to future pricing and sales projections. This is truely an injustice. It leads me to beleive that this is a key reason for the arbitration. Nokia gets to see not only how Ericsson defends itself in court but what their business strategy is. Unbeleivable.
I disagree. This is the most indept report on the state of interdigitals handset revenue potential yet. We all know the story and Robertson did an excellent job explaining the revenue stream as well as a supurb fill in the blanks chart to see the impact of future licensees.
This report is a must read for all invested.
Mr. Robertson is doing his job and doing it well. He is accurately portraying the wireless landscape and the potential of this investment. Bravo on a job well done.
Looks like we are being hit because of the delay factor(just a guess).
Lots of sellers this morning, not enough buyers. Just finished reading the Ericsson motion. If I though Nokia was sleezy before now I'm convinced. Judge really opened Pandoras box by letting Nokia access Sony/Ericsson and Ericssons sealed documents. These guys now have access to pricing, sales projections, targets, etc. This is really BS. It is like playing in the super bowl and letting the opposing teams backup punter listen to the plays in the hundle because they suspect they are cheating.
Ericsson request seems reasonable, let a neutral party review the documents to see if their is relevance. Nokia seems to want trade secrets from Ericsson which do not seem to have much to do with the matter at hand. Could Nokia be using arbitration as a way of gaining competative advantage over Ericsson? This really smells like crap and I'd be very, very upset if I were Sony/Ericsson.
Looks like the Nokia contract had a clause that states "all relevant factors" be taken into account. The argument seems to be that the facts of the Ericsson case are relevant factors and need to be considered.
Also appears that Samsung is trying to use the press release from the Ericsson settlement as proof that IDCC knew that the agreement affected a 3rd party and should not have been granted a motion to vacate.
You need to understand many posts are made to be funny. This one has some truths in it.
Normally when the stock goes up it is because of a well executed business plan. Also when a stock goes down it can be caused by poor execution. The market direction tends to temporarily move stocks north and south.
In IDCC's case management has been known to put its foot in its mouth on several occassions. My main complaint here has been expectations, they state them we rely on them. The stock price has everything to do with expectation. I've invested here and expect to make money. If my expectations are not met (share price rising) I do not like to see management getting large rewards(stock grants and options). It is human nature not to want to reward people on a job you feel is not well done.
IDCC's price is rising which is meeting my expectations as an owner. If these guys meet my expectations (rising price) I have no reason to complain and fully support rewards(RSU's and options) as well as selling shares on the open market.
if the stock is up I don't care how much we give away, I'm still ahead. Stock is down, throw them all out - don't look at the company's results and business plan, I want a higher price now, and tomorrow and every day after that.
Also this is not about throwing them out for me, it never has. If Howard states that he has more economic discussions then ever before like he did last CC, I'm expecting Merritt to deliver licenses. If he doesn't I want to know why and call him on the carpet for not getting them signed. I don't want Merritt fired or Howard replaced. I want to know why Howards indicates licenses are coming and Merritt sells shares signaling that they are not. I also want clear and concise communication for management so I can make accurate investment decisions.
Bottomline, this is about money. We are all here to make it. Today my expectations are being met. The stock price is rising. I'm still waiting for more things to happen via Howard's comments but it doesn't bother me because the price is rising anyway. In the American corporate system the shareholders are the owners and the companies must answer to them, this is why I will question management whenever I feel they are making mistakes. They work for us.
I think we will get a clearer picture next week after NEC (NIPNY) reports.
http://biz.yahoo.com/research/earncal/20040729.html
Thanks sjratty, loop, ghors, jaykay and all other board attorneys for providing valuable incite into these legal filings.
Corp,
I do beleive this run is for real. It appears that everything is at a standstill untill Nokia or Lucent is resolved. I think that this is the beginning of an 8 to 10 point run back to the 27/28 range right before we crashed.
I also beleive that Nokia won't sign until arb.
Samsung won't settle until Nokia settles.
LG won't sign until Samsung settles.
NT won't sign untill LU settles.
Eriscsson won't sign 3G until Nokia pays 2G.
Motorola won't pay 3G until everyone else pays.
Dare I say this is the beginning of the final run. I've always thought arbitrage money from the Nokia/Samsung $500 million would be starting just about now. If no delays are announced, then we can be sitting at upper 20's low 30's during the hearing and after the hearing if IDCC wins we start with knocking down these ducks one by one with 5 to 10 point runs for each new contract.
Now get off your butt and go get a signiture on a Palmone or a Novatel License. LOL.
We've had 3 new licensees since HG's statement about being in more simultaneous economic discussions than the company had ever been in before.
I've heard him say this on the last conference call. Since then we have had one Sanyo license.
I like to stay fair and balanced with my critism of IDCC.
I was not happy about Fagan and Merritt selling but felt better about it when the overall level of total share control (options and RSU both vested and unvested) was revealed by the board(some excellent work bt the board).
I also was not happy with Howard's "Economic Discussions" statements without having a time table when these discussion materialize into real licenses plural.
I'm very happy about Tom Carpenters report last week. It is giving the stock momentum.
Right now the NASDAQ is heading south while IDCC is heading north.
Very positive sign.
16-Jul-04 1,926.19 1,926.19 1,882.93 1,883.15 20,994,000 1,883.15
15-Jul-04 1,920.14 1,925.76 1,910.13 1,912.71 16,699,400 1,912.71
14-Jul-04 1,913.73 1,937.68 1,908.98 1,914.88 14,618,000 1,914.88
16-Jul-04 17.99 18.36 17.81 17.99 727,000 17.99
15-Jul-04 17.49 17.95 17.45 17.90 473,900 17.90
14-Jul-04 17.65 18.05 17.38 17.48 582,600 17.48
Bottomline, if the stock goes up, I'm very happy and have no complaints and will praise these guys (good job on the Carpenter report). If the stock goes down, I'll bitch and moan about management and what they are doing wrong. (only one license this quarter came from the economic discussions).Kind of like a boss.
Right now I feel they are doing well. I reserve the right to change my mind as soon as the stock price heads south. LOL.
What we need now is a NASDAQ RALLY.
At 1885 NASDAQ is near 8 month low.
17-May-04 1,881.06 1,887.74 1,865.40 1,876.64 15,288,900 1,876.64
Need to go back to November 03 to see these levels.
21-Nov-03 1,891.84 1,896.41 1,878.07 1,893.88 16,215,900 1,893.88
Certainly technology sector has been in a bear since end of Jan.
27-Jan-04 2,148.05 2,152.75 2,116.04 2,116.04 21,512,600 2,116.04
We have about 250 points to go to reach Jan 04 highs.
Whatever happened to the good old fashion summer rally?
Tough road for patent-busters
Friday, July 16, 2004 Posted: 9:21 AM EDT (1321 GMT)
Jason Schultz is an attorney at Electronic Frontier Foundation, a civil liberties group seeking to strike down patents seen as unwarranted and harmful to innovation.
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SAN JOSE, California (AP) -- A small company called Acacia Research Corp. went after some of the biggest names in broadcasting last month, suing nine companies for an estimated $100 million for allegedly violating its patent on streaming video.
That earned Acacia a spot on what the Electronic Frontier Foundation considers a top 10 list of intellectual property ignominy: patents the online civil liberties group is seeking to strike down as unwarranted and harmful to innovation.
"Good luck," said Paul Ryan, Acacia's chief executive. "Their chances are pretty remote."
Part fighting words. Part truth.
Only 614 of the nearly 7 million existing patents have been revoked, according to the U.S. Patent and Trademark Office. Some 3,927 patents have been narrowed since the agency began conducting re-examinations in 1981.
The hardest part for challengers is qualifying for a re-exam at all.
A challenger must find written evidence, called "prior art" in patent parlance, showing others developed the technology before the patent application was filed -- a formidable task that consumes a cottage industry of patent researchers and lawyers.
One-time startup BountyQuest set out in 2000 on such a quest. It wanted to debunk questionable patents by letting interested parties offer rewards of $10,000 or more for hard-to-find prior art. But there were few takers and the business failed.
The EFF is similarly relying on volunteers -- but without offering rewards. That's a surefire recipe for limited success, said Bradley Wright, a patent lawyer with Banner & Witcoff Ltd. "There are not a lot of people willing to spend free time to research for prior art."
Even when prior art is presented, re-exams are rare. The patent office held only 6,136 between the time the agency was authorized to do so in July 1981 and the end of March 2004, said Brigid Quinn, a patent office spokeswoman.
Intellectual property
The Acacia patent the EFF objects to is on "the transmission of digital content via the Internet, cable, satellite and other means."
Another on its list, owned by Clear Channel Communications Inc., covers the distribution of digital recordings right after concerts.
"These companies are trying to claim a monopoly on the tools of free expression," said Jason Schultz, staff attorney at the foundation.
The group's list, chosen from 200 suggestions solicited through its Web site, focuses on patents it contends are being unfairly used to demand licensing fees from rivals or individuals.
Acacia and Clear Channel defend their patents and their right to seek royalties for intellectual property they say they spent millions to develop or buy.
Clear Channel bought the so-called Instant Live patent two months ago. It plans to charge an "extremely small" licensing fee -- $1 per event in some cases -- to artists who want to distribute freshly minted CDs after their concerts.
Acacia's digital media patents, granted to the founders of Greenwich Information Technologies in the 1990s, weren't enforced until Acacia bought them in 2001. Acacia has since secured dozens of licensing deals with companies ranging from adult entertainment sites to The Walt Disney Co. It sued the large cable and satellite providers for patent infringement last month.
Ryan rejected the foundation's charges of bullying. "We're not trying to restrict anyone's freedoms, but we'd like to be paid for the use of our technology," he said.
Schultz and fellow self-anointed patent-busters hope their crusade will raise awareness about concerns the patent office is issuing baseless patents because it lacks the resources to thoroughly investigate patent claims.
"It's too easy to get a patent and too expensive to defend," he said.
Greg Aharonian, publisher of the Internet Patent News Service and founder of www.bustpatents.com, questions the validity of a patent granted to Microsoft Corp. in June covering the use of the human body to transmit power and data, or as an "intrabody communications" network.
Even the Federal Trade Commission recommended in an October report that changes in the patent system need to be made, including improvements for challenging patents.
The patent office, under the auspices of the U.S. Department of Commerce, has taken steps to improve the process but acknowledges the system's shortcomings, including staffing constraints -- about 3,500 examiners face nearly 200,000 patent applications every year.
"It's a balance between devoting the right amount of time and doing a quality job, and unfortunately, they can't take forever," patent office spokeswoman Quinn said. "We're already taking longer than we want."
Patent specialist Aharonian isn't satisfied with that response.
"There are plenty of people trying to bust patents. If patents are really stupid, they will go down, but it'll cost money and take some time. The real question is how do we help the patent office so they don't issue the crap in the first place?"
Nokia already has a 3G license.
They do not need to sign a contract with IDCC to access their IPR. So, I assume they have total access to all their technology. Hopefully, Ericsson and/or Lucent will trigger Nokia 3G payments.
From what I've read it wasn't price that caused Nokia's market share loss it was product design. They did not adapt to new phone fast enough. If you want to liken it back to the 80's and IBM it is similar. IBM sold 286 machines while COMPAQ was rolling out 386 machines. IBM wanted to wait until they could offer a full product line. The delay helped COMPAQ become a major company. First to market usually wins the race in the short term.
IBM's problem was instead of listening to customers they made products they felt customers should buy. Nokia needs to listen to the customer base, clamshell, camara phones instead of just rolling out the same products.
My problem is not so much with Merritt selling 20k shares to put some cash in his pocket. My problem is with Howards vauge Economic Discussions statements. I find these to be borderline misleading.
With the head of licensing selling now it is obvious to any investor that new licenses will not be signed in the near future. I wish that Howard would just SHUT UP and stop getting everyones hopes up. The selling was a signal that nothing will happen this quarter. So now we will have another CC and the same economic discussions (plural) produced 1 upgraded Sanyo license.
Bottomline, false hope seems to be the norm for the IDCC investor.
"billy sold 33%, it may suggest LG isn't coming this month"
Billy sold because of greed. The shares will be replaced and then some with the new compensation plan. You can bet that everyone who sold recently will receive a large portion of this plan. It seems to have strengthen the ability for insiders to sell shares.
99.1 Press release dated April 5, 2004
Exhibit 99.1
InterDigital Realigns Compensation Structure for Continued Success
KING OF PRUSSIA, Pa.(BUSINESS WIRE)April 5, 2004
Changes Are Part of a Series of Steps Taken by the Company's Board of Directors to the Link with Shareholder Interests
InterDigital Communications Corporation (Nasdaq:IDCC), a leading architect, designer and provider of wireless technology and product platforms, today announced that its Board of Directors has approved changes to its compensation programs designed to more closely link employee compensation to Company performance and to strengthen employee retention. "These changes are part of a series of moves in our ongoing effort to position InterDigital for long-term value creation," said Harry Campagna, Chairman of the Board of Directors. "Our compensation philosophy is driven by our desire to attract and retain the most talented people by offering meaningful compensation, while at the same time promoting a growing level of ownership in the Company among our management and their fellow employees." Beginning in April 2004, a broad group of managers and executives, representing about one-third of InterDigital's workforce, will participate in a program which provides both a cash incentive award tied to long-term company performance goals (LTI) and a grant of restricted stock units. Under the program, the Company will substantially reduce the use of stock option grants as an equity incentive for these employees. While the Company has not made a broad employee stock option grant since 2001, it may from time to time utilize its limited pool of stock options for employees below the manager level. InterDigital also instituted stock ownership guidelines for executive officers and enhanced other elements of compensation for all employees, adding both enhancements to the 401(k) plan, including the potential for a performance-based award each year, and cash awards. The LTI is entirely performance based, with the level of potential payout tied to the achievement of goals associated with the Company's strategic plan. The restricted stock units vest over time, deepening employees' equity stake in the Company. The new compensation structure is the result of a comprehensive review by the Compensation Committee of the Board of Directors, in conjunction with independent consultants, and reflects in-depth analysis of evolving compensation trends in the marketplace. This program represents another step in the ongoing development of InterDigital's business practices and corporate governance policies designed to position the Company for long-term growth and strengthen alignment with shareholder interests.
OT: I really like UTSI. Fundamentally a very solid pick. Just bought Audiovox handset unit. Revenue growth is outstanding and they are on track to make $1.85 this year. They seem to have a great formula for these densely populated chinese provinces, PAS. Love to see them sign a license with IDCC.
Dear Loop,
Selfishly, I wish that you would continue to contribute. I truley enjoy reading your posts and I've learned a great deal over the years from you. I understand that lifes priorities change and you must do what you feel is right. I'd like to thank you for sharing your knowledge and experiance with us and hope that you pop in from time to time as your schedule permits.
John (jai)
DD,
I'm as long as anyone else on this board. I'd like for everything to be happy in IDCC land but sometimes the Kool-Aid doesn't taste right.
John Q. Public uses the internet to see information. Data_rox posted these numbers. It looks like a 30% reduction in holdings.
William J. Merritt,officer, exercised an option for 20,000 shares of common stock for $5.06 to $7.31 on June 28, sold 20,000 shares for $18.35 to $18.82 on June 28, and now directly and indirectly holds 44,012 shares.
Lawrence F. Shay,general counsel, exercised an option for 8,000 shares of common stock for $8.45 on July 1, sold 9,200 shares for $18.55 to $18.86 on June 30 and July 1, and now directly and indirectly holds 15,196 shares.
Charles R. Tilden,chief operating officer, exercised an option for 23,500 shares of common stock for $5.25 to $5.63 on July 1, sold 20,000 shares for $18.55 to $18.76 on July 1, and now directly and indirectly holds 73,999 shares.
Now you can justify all you want about options in the pipeline, diversification, Howard holding but it still stinks. The new investor who does not have the level of knowledge that any of us have looks at insider selling, sees a 30% reduction in holdings and decides they must wait a while before investing here.
In routing for our investment to go up we sometimes look at every move with rose colored glasses. In this particular case you need lead covered glasses (one you can't see out of) to put a positive spin on this selling.
IDCC is my largest holding. Also, many friends, relatives and acquaintances in IDCC based on my advise. My broker bought shares in his personal account based on my forever touting IDCC to him. Quite frankly he may have purchased shares just to shut me up about this pick.
When he called me last week while I was away and asked me about the recent wave of insider selling I had no defence. It stinks plain and simple.
When the head of licensing and the Chief Operating Officer sell large positions it sends a very bad signal to those who wish to invest. Howards comments "More economic discussions then ever" seem down right wrong. If all these discussions are going on why would the head of licensing choose to sell now?
This is not the first time that insider selling acted as a rally killer. Tom Carpenter outlined this last year during his down grade.
I was happier last year when they sold at $28 at least one can say the stock was fully valued and they made a smart move.
6-Jun-03 GOLDBERG, HOWARD E.
Chief Executive Officer 7,500 Sale at $26.53 - $28.6 per share. $207,0002
6-Jun-03 FAGAN, RICHARD J.
Chief Financial Officer 15,000 Sale at $28.10 - $28.38 per share. $424,0002
6-Jun-03 LEMMO, MARK A.
Executive Vice President 20,000 Sale at $28.60 per share. $572,000
But the company states that the stock is undervalued, executes a share buy back then key executives sell. The fact is that these shares that the company is buying back will go back to the very same executives in the form of RSU's with the company forking out cash to pay their taxes.
For all those investors in love with this company just remember, these executives are no better or worse than the executives at other companies. They look out for themselves first then shareholders somewhere down the line when it is serves them to.
Bottomline, this is about greed pure and simple. These guys sell because they know that their shares will be replaced unlike our shares which can't be unless we put more hard earned cash into this company.