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loto-This whole thing is really about 3g and there are no guarantees that nok will have any better position than their competition. A one time cost to each member of the handset cartel to buy out IDCC and possibly use the entity as an r&d arm for the handset makers to squeeze out qcom in the future, seems a little far fetched, but may be cheaper in the long run.
Does anyone here think nok's approach to this entire situation is a little strange, if in fact they were only concerned with themselves. Seems to me that negotiation would be the prudent course if nok was only concerned with the best deal-if they are carrying the torch in an agreement with other handset makers, then the current set of actions makes more sense. Going the distance may be a requirement if the cartel is to hold up in its attempt to cap rates and offer indemnification. The one thing that is clear is that nok perceives IDCC as a threat to their business plan. They know first hand of the top quality of IDCC's engineering team and the last thing they want is another qcom chewing into their margins. Would the group of top handset makers pooling resources for a buyout of IDCC make more sense than each going it alone and allowing IDCC to become more powerful in the future? I know this is a little way out, but the added effect would be to keep royalty rates down without a possible scandal of rate fixing etc.
mschere-Great find-IDCC just might be the kind of company China would prefer to work with.
Hard to believe more posters aren't commenting on eneerg1 posts, but seem to be more interested in the weather in the desert. Aside from miller, who thinks Elliot Spitzer is pissing into the wind,others need to understand what is really going on here with our investment and the real obstacles being put in front of us.
e500-I think buyout is inevitable and if their scorched earth policy fails then the next logical move is for someone to purchase the nemesis to their controlled rate cartel. In that sense the stock price is important, and by constantly litigating we all know how that has held the price down. If nok's 2g payout to IDCC triggers a 3g contract from s/e, as some have speculated,and this in turn triggers nok for 3g, then the cartel is busted. The stock price will soar and buyout becomes more costly. So, yes I do think nok has an interest in our stock price and so do others.
My question is what is the end game scenario by the 3g cartel with regards to IDCC? The first strategy of litigating IDCC into oblivion is failing. The second strategy of keeping IDCC's stock price low for a suitor is working for now, but how long can someone wait to make a move, as IDCC gains more financial strength and the technology we own becomes evermore essential to 3g success. This is a very enviable position to be in(imho)and I suspect that management has a strategy to fully exploit this position. Because of nok's arrogance and greed, the 3g cartel is about to be busted-so who will step up to the plate to buy out IDCC and prevent a price fixing scandal? I believe that we are closer to finding that out than we think. Let's hope management makes them pay thru the nose-maybe each member of the cartel can anti-up and cover the hostile takeover price.
Terps- I am an admitted mental midget when it comes to transfering posts-maybe someone else on board can do it.
Everyone should read ab post 05253 by eneerg1-gives a good perspective on nok's actions and why they are so desparately trying to put us out of business.
I think that the courts are finally sending a clear message to nok and other bullies that in order to use someone else's ipr you must pay for that right. The market place will judge who has the best technology, not the courts. Tying up the legal system with a barage of suits, is not only an insult to our legal system, but an unethical way of stifling competition. Free markets must allow for the small companies not only to survive but have a chance to thrive. Price fixing cartels are anti free market and a deterent to innovation. Penalties need to be stiff to the company that continues to string out appeals every time a decision goes against them. Hopefully the courts can see thru tactics to intentionally harm another party with endless legal action.
tfwg-Just pokin a little fun at ams and miller who are so quick to kick us when we are down-no hard feelings I hope-agreed in united front against nok.
IDCC up almost $2 since ams-sag/miller contrarian indicator flashed a buy signal!!!
After how many ass kickings in court does nok's business strategy manual say to go from: litigate, litigate, litigate to settle, settle, settle. I'm sure nok's puke point is high, but allowing themselves to be triggered a second time would be a real blow to finnish pride-think the sh*t is about to hit the fan in Espoopshoot.
We have our own 800lb gorilla-magilla way to go!!!
Give the man his due-uncle billy is too passive-Bill "the Mongoose" Merritt is more like it when taking on the king cobra of snakes-Ollila & nok.
Makes you wonder why a $73 bil market cap company would mount a 3 pronged legal attack against a company not yet a $1 bil in market cap. We must have something they want, to pay this much attention to, or they are afraid that we pose a threat to their 3g cross licensing cartel. Margins are already being squeezed at nok-must really fry their ass to see a business model where a huge chunk will go straight to the bottom line. Hang in there everyone-we have the technology,the legal expertise and now the right people in place to capitalize on the wireless explosion. In poker terms, nok is trying to come over the top on us, but it won't work because we have a made hand and won't be intimidated by the bluff of the big bully.
Welcome to the world poker tour. Looks like nok is trying to bluff its way past IDCC's made hand. You won't be getting any of my shares you finnish fuks!!
Adios Wells!!!
So what is the real motive behind Nok's actions-and don't tell me it's in the best interest of their stockholders. Their willingness to blatantly disregard the authority of binding arbitration that they filed for, based upon a dissenting opinion from their lackey, tells me that there is something alot more sinnister going on here. Do they really think any judge can't see what the intent of the contract was? The $250 mil is not the issue here.Imo, from nok's standpoint, they know what IDCC has in 3g and they are trying to break IDCC any way they can. They simply do not want another ipr holder to enter the 3g mix and if they can cause enough disruption to force management to sell out at a low price,then the real reason behind these actions will be accomplished. I hope that the legal system in this country will not stand for this type of behavior and in the strongest way possible send a message to all the nok's out there that the ipr of American companies will be protected and bully tactics to run companies out of business will not be tolerated and will be severly punished. .
Wells uses ams/sag indicator.
I would now officially give the TC rumor a high probability due to the fact that the beacons of contrary indicators have shown us the light-ams,e500 etal.
5 months remaining in Jorma's reign-Does he really want to leave a 2g and 3g open ended mess to his successor? Does he want his legacy to be "Fool me once,shame on you-Fool me twice shame on me?" Is a settlement out of the picture or am I just dreaming the impossible?
I think that the part that sticks in nok's craw is the 3g trigger and as long as they are going to protest, why not throw in the kitchen sink to extract maximum pain to IDCC. Nok went out of its way to proclaim that the arb was only about 2g and then started the 3g action in Delaware. At the time, I thought that it was simply a bargaining chip, but now it seems that their lawyers came to the same conclusion as the arb panel did when reading the contract between the parties. Hope the courts can see through this tactic and confirm the ICC award.
When ams13sag speaks contrarians listen-FADE THE AMS13SAG!!!
Corp-Since you are our resident m&a expert, please give us some of your insight on what type of company may be most interested in buying IDCC and how you people go about pricing such an aquisition.tia
A formal offer would do wonders for our stock price and put a new spin on valuation of our company.Bring it on-doesn't mean we have to take the offer,but those wanting some pr couldn't ask for anything better.
And, down goes Ollila, Nok pummeled today!!eom
I would love for qcom to make a formal offer for IDCC. This would show wall street the minimum value of IDCC's ipr and draw attention from analysts that won't touch us because of traditional valuation methods. If a bid was to be made, I would think that this is the optimal time for a low ball or starting bid.Nok will act as front man and stall the arb award process as long as possible, while qcom gathers support for its bid.Qcom also knows it may have some competition in the bidding process and even if the rumored $32 is correct, can't see anything less than $40 being acceptable-$2biliion is a drop in the bucket for qcom or any other major player. LET THE BIDDING WAR BEGIN!!!
ESPN announced it will carry the Aug 1 2g heavyweight title fight between Bill(the Mongoose)Merritt and Jorma(the Snake) Ollila.A 3g rematch is also guaranteed.For a prognosis on the fight please refer to Rudyard Kipling's "Rikki Tikki Tavi".
Is this the financial version of "good cop-bad cop" where nok beats the stock down so qcom can buy on the cheap and nok pays nothing because of cross licensing? Start the talks at $40 and I'll listen.
ppart1111-Smart money selling nok and buying idcc!!!
Watching cnbc and nok showed down $4 on extended hrs trading-must be a mistake but it went by twice and did my heart good.
Anyone know when the reign of the snake from Espoopshoot ends?
IDCC-King-IMO,the real issue before us is how to penetrate the cross licensing cartel and stock buybacks won't accomplish this, unless the treasury stock is used to buy a manufacturer.So far we have tried litigation and realize that although it ultimately may be successful, the time factor works to our detriment.I feel the time has come to add another weapon to our arsenal,and that is producing a product for sale.Without a viable product for sale, I'm afraid that the only conclusion to this saga is to be bought out.We have some very good minds on this board, so maybe we can come up with some other strategies for IDCC, other than just litigation to maximize our potential and shareholder value.This could make for a very interesting case study in B-schools-cross licensing cartel stifling competition and innovation and the strategies used to break up the cartel and maximize shareholder value of an innovative ipr holder.
Grotelul-Agree there is something going on here, but I really think nok perceives IDCC as a threat in 3g, especially if it can use $250 mil to buy a chip producing company or other technology to strengthen itself in a particular phase of 3g.Nok clearly wants to delay or nullify paying this amount to IDCC now and this is their first line of defense in the 3g battle.I would not be surprised that, if this delay tactic is drawn out too far, IDCC will seek alternative means to make the purchases that they are looking at now. Nok will not be successful in their end game attempt to stifle competition-and IDCC will prevail one way or the other.
Centerline-Nok's hardball action should answer your question. If we didn't have the goods for 3g,nok would have paid and been done with it long ago, but we are a threat to nok's vision of a capped 3g rate world. This battle is really about 3g and nok has chosen to try to discredit us at this juncture, hoping to weaken us for the real battle ahead.
Please make it 100% and hit the road!
Great article-pro active pr rather than reactive-hope we continue to get IDCC story out there and let our legal team fight the scumbags in court. Even though things don't happen as quickly as we would like, I feel that this company is getting stronger by the day.All disappointment in life is caused when expectations are not met and usually it's the time element that causes the pain. Keep the perspective-we have a winner here-it's just taking longer than our expectations.
Good info captain-would like to see some large US company carry the torch in this regard. We have our plate full now and I think concentrating our resources on enforcing the arb decision is paramount.We have nok's nuts in a vice grip and the pressure is mounting by the day.Let's not distract management from pursuing its course and let this latest action play out before we embark on some other strategy to enhance value in our company.
Where I think politics could be used effectively against nok is in their arrogant call for a cap in royalty rates to ip producers. This is completely against free market concepts and when American companies are the ones being hurt,politicians are more likely to take up the cause. Qcom should be the American company leading the charge because they are the largest ip producer in wireless and have much at stake as well.
sjaym-John Q Public hasn't even taken a first look at IDCC. I would rather we take a pro active stance in getting out the IDCC story than a reactive one every time nok speaks.