mickeybritt@outlook.com
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jeffree
They say never short a dull trading stock. When any big buyer wants to
take a position the market will go up 5 points or more. It moves up
almost 1 1/2 points on almost no volume, can you imagine a fund wanting
to buy 2 or 3 million shares? Any good news that would bring in new funds
and over a $100.00 could happen before a cat could lick his ass.
JMO
Mickey
Looks like Mschere was right!!!!!!
He said there would be hardly any individuals left in the stock and the
institutions will make all the big money. We are seeing fewer indivuals
than ever in the stock and the big run has yet to come. The Blackrocks
and other institutions will be the big winners.
JMO
Miickey
dndodd
Do you really think that all the big name companies who are being
represented by Avanci will only be getting the amount of money you are
suggesting? If you feel that the Internet of things is no big deal then
short the stock. Either the trillions they say will be using the technology
or they are lying. Do you think the IDCC technology would be worth less
than 20 trillion coke cans? I think this is a time bomb ticking and
about to explode. Reality will be something that will hit a lot of people
right in the face. When the institutions that don't own IDCC realize
what the potential there is here they will buy the hell out of the stock.
I think BlackRock probably is pretty smart and they didn't get all the
money they control being stupid and they own a huge chunk of stock.
JMO
Mickey
how about IDCC this time next year trading at $175.00 a share?
The Internet of Things regardless of what numbers IDCC is saying now they
will be saying bigger numbers later. You can't have technology in over
20 trillion user devices and not get billions. Thrown some Hillcrest
revenues, back money and another 50% licensed and the stock is so cheap
it is hard to believe. Common sense and a little math and you can see
real value here.
D Miller lots of people either ignored or laughed at some of the most
successful people in the world. I believe most laughed or ignored me
when I said we would trade over a $100.00 and we did. I assure you that
you can laugh or ignore or short I don't give a rats ass but one thing
I do believe that this parrot says the stock is dirt cheap and this time
newt year will be trading over $175.00 a share.
JMO
Mickey
dmiller
I guess the company didn't even put itself up for sale a few years ago.
I don't think the buyers of a company run a article in the Wall Street
Journal or on CNBC before they buy a company. If I was the CEO of some
of these big companies I would damn sure buy IDCC. I don't care if I
repeat something it is still something I believe. Best as I recall one
can express their opinion, and for years you have downplayed IDCC and
called for lower prices and for years you was wrong. When you have
technology that will will be used in over 20 trillion users besides the
Hillcrest technology, only half the cell phone licensed and the half not
licensed owing back money the company is worth tons more than todays
price. I said if you just picked up and sold 20 trillion coke cans what
would you get? I am sure the IDCC technology will be worth a lot more
than a coke can to the over 20 trillion users.
So Mister no one cares what you think.
JMO
Mickey
mister
The year isn't over and anything can be announced. Remember if they just picked up 20 trillion coke cans what would that be worth? You better hope
they don't sign a couple of companies that also owed back money or a
company doesn't come in and try to buy them out.
JMO
Mickey
downthehatch
Real simple the quarterly reports was bull and no way a audit will ever
be done on those years. It's better to promise a audit than have one reveal
the truth. Staying out of prison may be more important than having a audit
be used against you. No cash in the bank and no accounting for where the
profits was spent, sure recipe for the reports were not real.
JMO
Mickey
hrbart
Pass the Kool aide please as I can't get enough at this price. I equate
buying here as like stealing, this time next year we will be well over a
$100.00. Hope I am alive to serve crow with the lye you are drinking.
JMO
Mickey
Mister
Correction on my previous post bad math but the approximate price of 85.00
is about 20% higher not 30% either way still way below today's price.
JMO
Mickey
mister
Surprise, surprise, no one cares what you think the $85.00 price is a
30% increase from the present price. There will be new deals and more
back money. I suggest you cover your short as the stock is way to cheap.
I think the market makers are baiting the sellers to acquire more stock
and ultimately stick it to the sellers. Don't rule out the company
buying back and God help you if a real buyout should happen. You can't
have technology in the largest industry to ever hit the world and
the stock be trading at a less than 8% P?E. There has to be joint
partners that see the value as well as Chip makers that can make billions
and I mean billions by buying IDCC.
JMO
Mickey
Got to love it!!!!
Here we have a profitable company that pays a dividend and the stock is
trading below a 8 P/E. If this isn't a steal I don't know what is.
The street gives this stock no credit that the Huawei patents will generate
more revenue, that no new license with back money will ever happen and
that the Internet of things will not generate as much money as picking
up empty coke cans for each use of the IDCC technology. I wonder what
20 trillion coke cans would bring?
JMO
Mickey
moviefan
Excuse me but why would you wait till January 2018 to get a audit and
form 10? With the years and years of promising this and even saying
that the audit was in good shape and was going to be accepted till the
alledged auditor was not in good standing, and all of a sudden didn't
get another auditor immediately if all was so good. Everything is going
to happen later but never happens. If you have legitimate records than
a audit right now would be no problem.
JMO
Mickey
JimLur
I can't figure that high but if you are right and the predict 20 trillion
and 1% would generate 10 billion then to get 1 billion you would be getting
1/10th of 1% and then divide that by 20 you can get that high of a rate
picking up coke cans.
JMO
Mickey
vegas options
What percentage is what I want to know? Take just 1 trillion and then
multiply it by 20 and in order to get a lousy 100 million a year what
rate would they get? What you are saying a 100 million a year would take
10 years to get a billion in a trillion's of dollar industry and you
are to have significant technology for that industry.
That makes me question why if we have such important technology and
software why the hell shouldn't IDCC be naking billions not millionns?
JMO
Mickey
vegas options
Exactly what kind of rate do you think IDCC will be getting for their
Internet of Things technology? This is supposed to be trillions of
dollars industry and if I understood right IDCC said even if they wasn't
part of the direct usage that the sellers of what the direct users needs
will have to license the IDCC software. If the Internet of Things doesn't
generate billions for IDCC then the street is lying about the trillions
or IDCC is being ran by complete idiots.
JMO
Mickey
Home run here for sure!!!!!
They getting new cell phone license will be the icing on the cake.
The Internet of Things is going to be humongous and unlike the cell phone
development IDCC is working in conjunction with a host of the major
players which will insure that money will flow towards IDCC. When the
5G license start pouring in so will the money. I assure you that the
Microsoft's. QCOM'S, Ericsson's, and Huawei's are not going to see the
products are licensed for chump change. When you are talking trillions
a very small rate will be humongous. If you don't buy this stock right
now you will be sick that you didn't.
JMO
Mickey
Just a opinion!!!
I almost hate to say this but I feel we will definitely see ASUS, ZTE, and
LG this year. The win about IDCC not doing anything wrong in the Taiwan
license should handcuff the aforementioned and it's sign on the dotted
line now. I can't wait to see Avanci start getting license and also to
license every computer, lap top, and I Pad, and definitely waiting on
the cities to get under the IDCC umbrella and save money and improve
traffic flow.
I wonder when the joint venture with Microsoft, Nokia, and others will
start booking revenues. One thing we know is IDCC is working with the
big boys and they will make money.
I Hope the shorts added on today and they cover over a $100.00
if they don't go broke before then.
JMO
Mickey
nokiashill
Don't laugh to hard as soon you will be puking when we bust through $100.00
like it was tied to a gate post. The future is brighter and closer than
ever. We will see new license and back money and yep the Internet of things
will soon be generating new money. Let us not forget the Huawei patents
that was just now acquired and those patents will also generate money.
In other words don't buy now and cry later.
JMO
Mickey
I guess the street don't see the future and new license and back money!!!!
I am not understanding the street not seeing the ASUS results and even
the ZTE argument as a positive. The thing I don't understand is why the
hell is LG not licensed and paying the back money already. Guess I will
just have to wait for our best in class to do something. I wonder what
kind of rate IDCC will be getting for their contribution to the Internet of
things?
JMO
Mickey
Hope for a 10 point rally today like the decline when they didn't like
earnings.
The shorts have a problem especially with anytime a ASUS license could
happen with back money, and ZTE with back money and LG with back money,
and Lenovo with back money. I hope someone ask about the Microsoft/Nokia
situation and if the Nokia part has been resolved or more money coming.
If the Internet of things generates the trillions they say then it will
be impossible for IDCC not to make billions over the years or they would
be getting hardly nothing for a license. Homerun is what you have here
so lets get batter up and the ball game going.
JMO
Mickey
jjff
I think the stock rocks and rolls after earnings. I think we will see at
least 1 new license before year end also. I am shocked the LG is not
licensed and paying back money already. I think ASUS is going to be paying
sooner that later. I also expect more stock buy back by the company. It is
better for the company to be buying here or buying options to acquire
stock rather than be buying over a $100.00. If the shorts are not hedged
then I think they will be a big loser.
JMO
Mickey
Better buy while the stock is cheap as earnings may move it a lot higher!!!
Good earnings will be received very well by investors I think as the ASUS
win and the possibility of a ZTE, LG, Lenovo, and Asus new license with
back money coming soon. I said it in another post but the Internet of
things is about to explode and IDCC will be instrumental in a lot of
this progress, the need for the IDCC technology will be hard for cities
to not install it.
JMO
Mickey
When was the funeral?
This board is dead. The company didn't answer or return phone calls, no
idea who makes the market in this stock. Where are the financials of this
company?
JMO
Mickey
jjff
Why is it sad no big volume? It means when the volume comes in the shorts
will get decimated. They think they are in control and the big boys are
getting ready to take their money. When a big move happens how are they
going to cover without losing their rear end.
JMO
Mickey
Just got back from all expense paid trip to Puerto Valarta, Mexico!!
Didn't keep up with what has been going on but noticed IDCC won a
arbitration that was uphed, hope that also brings new license and
back money. The all expense trip was paid for by the company my wife
sells skin cream for. She had a great time and next year it is
Cancun free trip Hope I am here to go and IDCC is trading over
$150.00 a share. Surely with the ZTE argument and the ASUS win
one would think the best in class license team could get more
license and maybe Avanci gets some license and Hillcrest get some
license. Stock is just to cheap with Internet of things also about
to get in gear.
JMO
Mickey
Tw=exastwnnis
Then why in the world does IDCC continue to pay for patents that does
not generate money? Are they that stupid that they don't have enough
sense to know this patents will not make them a penny? I am all for
inventing and acquiring patents but I expect them to be good enough
that management and our patent department should be able to identify
a patent is a money maker or just another piece of paper to brag about
having and nice to say how many, but how about telling us how many are
useless.
JMO
Mickey
Just curious?????
IDCC has over 20,000 world wide patents and acquiring more reguarly. I
wonder how many of those patents are not worth the paper they are written
on? One would think with that many patents they should have 1,000's of
patents that are essential and worth lots of money. Where did we go
wrong it not getting all companies both cell phones, and computers and
lap tops, and tablets licensed? If the patents are not creating money
why are we adding them? Are they enhancing existing patents they can't
get a license for? Just hard to understand, one would think any new
patents added would be wham doodlers that would generate new money
immediately if not sooner.
JMO
Mickey
I just wonder how much money Parkinson has made off all these lies?
The man has cost shareholders millions of dollars, and has told us one
lie after another. We should have all sold the very first time he promised
the audit and didn't deliver, that was a sure sign that the phony quarterly
reports was just that phony. How he can look in the mirror is hard to
believe but he apparently has no morals and had rather lie than eat when
he is hungry. It appears that he has ran out of ways to manipulate the
stock any more and his biggest fans have came to the realization he has
conned them out of their money.
JMO
Mickey
FISH
I would like to see them sign a company that has never licensed that has
been selling product for years and not paying. I still wish I knew or
understood the Nokia infringement action.
JMO
Mickey
Gamco
I like the potential of the company and it is grossly undervalued here.
What I don't like is 45 years of being a cell phone license company and
only around half the market licensed. I find that inexcusable when you
look at how many QCOM has. Yes QCOM screwed IDCC in 1994 but that was
them being smart and IDCC giving away the farm. However to have world
wide 20,000 patents and still only half the market licensed begs to ask
what the hell is the need for 20,000 patents you can't license.
I still think this is at least a $150.00 stock but I also feel we should
apply more pressure to the smaller companies WHO OWE BACK MONEY.
JMO
Mickey
Paulee
Since you know they no longer have meetings that the public can attend so
F you.
JMO
Mickey
Paulee
You have to be kidding that for 45 years they have had meeting's every
Thursday and only 50% of the market licensed and the real small
manufactures have not been sued. I wonder who they are calling on and what
the legal people have to say to take no action?
JMO
Mickey
felix7
If I was CEO I would have a meeting every Friday and each person on the
license team would have a sheet saying who they had contacted via phone
and or personal visit. It is time for them to be making calls every day
every week. If they are not making the calls fire the hell out of them.
I also would be talking to our attoneey and see who hasn't signed that
we should be suing. It is time to get things done and no excuse should
be accepted.
JMO
Mickey
Just my opinion!!!
With the latest after hours purchases and the increase in volume today,
I think our worst in class license team may have a announcement next week.
The traders seem to always know when to load up. Of course we all know
IDCC would never help a trader they just get lucky.
JMO
Mickey
Got to love it!!!!!!
IDCC purchases Hillcrest and Merritt said that acquisition would help
license the unlicensed. Not a single new license for cell technology
and of course no license for the Hillcrest technology. I guess our best
in class license team will be getting license for those sensors, so look
for a license of that technology in 2026 which is about how often our best
in calss gets a license and of course if they get a license the management
gets a huge bonus. I wonder when Merritt will get a damn thing done?
JMO
Mickey
hrbart
You better read la-idcc-fan post the stock was called away from him and
the stock was IN THE MONEY this means the party wanted to buy stock and
not do it in the open market. You don't call stock in and think the price
is going down. That would make zero sense.
JMO
Mickey
la-idcc-fan
It depends on how many shares are involved. If it is a lot and say the
buyer wants a lot of shares they call them from you rather than running
the stock up trying to buy a lot of shares in the open market. It doesn't
take many shares to move the price up or down.
JMO
Mickey
I hate to harp on this subject but in 45 years and no more license than
has been acquired in this time and getting bonuses is ABSURD.
One would think in 45 years IDCC would have at least 90% of the market
licensed. Just how can these people even get a pay check let alone a bonus?
To think Merritt has the balls to call this license team best in class
says volumes about his perception of the license department. How they
could do worse is hard to phathom.
JMO
Mickey
Old post from mschere!!
I don't know how many members compose our best in class license team
maybe olddog can enlighten us but I am going to use 5 as a number. I doubt
it we have a total of 40 paying licensee's but lets say we actually have
40 and with 45 years in business that would mean each employee gets a
license every 10 years hell of a job if you can get it. 40 licenses
over 45 years mean every license best in class gets 1 license every 10
years. meaning 5 employees got 40 license in 45 years.If you want to
puke go ahead as this should make all of us sick but seems to not bother
management as they think this should be rewarded with big bonuses.
mschere Member Level Sunday, 10/17/04 10:19:08 AM
Re: mschere post# 81919
Post #
81920
of 419401 Go
Patent Licenses
At December 31, 2003, we had granted to 33 licensees a total of 36 non-exclusive, generally non-transferable, royalty-bearing or paid-up licenses to incorporate our patented inventions covering 2G and/or 3G standards. (See Table below.) When we enter into a new patent license agreement with a licensee, the licensee typically agrees to pay consideration for sales made prior to the effective date of the license agreement and also agrees to pay royalties or license fees on products that it will sell during the term of the agreement. We expect that, for the most part, new license agreements will follow this model. In circumstances where we receive consideration for sales made prior to the effective date, we recognize revenue in the quarter in which the patent license agreement is signed. However, if the license agreement is reached as part of the settlement of patent infringement litigation, we recognize consideration for past sales as other income. Our license agreements are structured on a prepaid, paid-up, or current royalty-bearing basis, or a combination thereof. Non-refundable prepayments are advances against payment of future royalties, and are usually made in exchange for prepayment discounts. As the licensee reports sales of covered products, the royalties due are calculated and either applied against any prepayment, or paid in cash. Sometimes, the royalties due are applied in full against the prepayment while other times they are applied in partial satisfaction (e.g., 40%). In the latter case, a royalty would be due for the remaining amount not applied against the prepayment (e.g., 60%). Additionally, royalties on sales of covered products under the license agreement are payable or exhausted against prepayments based on the royalty formula applicable to the particular license agreement. These formulas include flat dollar rates per unit, a percentage of sales, percentage of sales with caps, and other similar measures. The formulas can also vary by other factors including territory, covered standards, quantity, and dates sold.
Most of our license agreements that provide for the payment of royalties on an ongoing basis require the payment of royalties based on sales of covered products built to a particular standard. A few agreements that provide for the payment of royalties on an ongoing basis commencing when there is an infringed patent issued in the applicable geographic sales region. We generally recognize royalty revenue as earned based on royalty reports provided by our licensees or based on reasonable estimates.
Most of our license agreements are royalty bearing, however, certain of our license agreements are paid up and do not require further payments under specified ranges of conditions (e.g., for products built to particular standards). We recognize revenues related to paid-up amounts on a straight-line basis over the effective term of the license.
Siemens AG’s (Siemens) license is paid up under our 2G and selected 3G patents. The Siemens agreement does not include any rights under any of our patents (including essential patents) issuing from patent applications filed after December 15, 1999, or for those patents for which we acquired licensing or ownership rights after such date (e.g., Windshift’s patents and patent applications). Based on these limitations, the Siemens patent license agreement does not provide a license under all of our patents that we believe are essential to 3G, including cdma2000, or all of the inventions which we believe will be essential and which are contained in pending patent applications. Kyocera Corporation’s license under certain of our patents is paid up for PHS and PDC products but not as to other TDMA-based products. The Sanyo and Toshiba licenses under certain of our patents are paid up for PHS and PDC equipment made, sold and used in Japan but are generally royalty-bearing otherwise. NEC’s license under certain of our patents is paid up as to PDC and PHS products; and the 2G Matsushita Electric Industrial, Inc., license under certain of our patents is generally paid-up for TDMA-based 2G and 2.5G products.
Our patent license with Nokia is paid-up, generally, with respect to 2G and 3G covered products through the end of 2001, and contains a structure for determining the royalties thereafter. Nokia and InterDigital Technology Corporation, our wholly-owned subsidiary (ITC), are currently in arbitration over Nokia’s obligations on royalties for product sales beginning in January 1, 2002. (See, “-Legal Proceedings”). In addition, as part of our recently completed development project with Nokia (See, “-Business Activities, Technology and Product Development”), Nokia’s royalty obligations are also paid-up for TDD products based upon the scope of technology delivered under the development project. Nokia is also licensed on the same basis with respect to certain patents technically necessary to implement TDD technology; however, such paid-up license does not extend to non-TDD functionality.
Additionally, in 1994 we entered into a paid-up CDMA-based patent license agreement with Qualcomm, Inc. (Qualcomm) that is limited in scope. The Qualcomm license excludes, among other things, any rights under our patents as regards TDMA standards, any rights under any of our patent applications filed after March 7, 1995, any rights under the patents and applications subsequently acquired, such as was the case with Windshift, and any rights to any patents relating to cellular overlay and interference cancellation. The Qualcomm license agreement grants Qualcomm the paid-up right to grant sub-licenses under designated patent and patent applications to Qualcomm’s customers. For some of our patents, Qualcomm’s sublicensing rights are limited to those situations where
Qualcomm is selling ASICs to the customer. For a limited number of patents as to which applications were filed prior to March 8, 1995, Qualcomm may grant licenses under such ITC patents regardless of whether the customer is also purchasing an ASIC from Qualcomm. Based on these limitations, Qualcomm is not licensed under either all of our patents that we believe are essential to 3G, including cdma2000, or all of the inventions which we believe will be essential and which are contained in pending patent applications. The proportion of essential Company patents under which Qualcomm is licensed has diminished substantially over time as the Company has been inventing and acquiring technology at an accelerating rate since early 1995.
Certain existing license agreements may be renegotiated or restructured based on most favored licensee (MFL) or other provisions contained in the applicable license agreement. MFL clauses typically permit a licensee to elect to apply the terms of a subsequently executed license agreement that are more favorable than those of the licensee’s agreement. The application of the MFL clause may affect, and generally acts to reduce, the amount of royalty obligations of the licensee. The application of an MFL clause can be complex, given the varying terms among patent license agreements.
Expenditures relating to maintaining our current licenses (other than enforcement proceedings) are not material, and are predominantly administrative in nature. Revenues from patent license agreements have been used for general corporate purposes, including substantial reinvestment in standards contributions, technology development and productization. Revenues generated from royalties are subject to quarterly and annual fluctuations.
In 2003, 2002, and 2001, respectively, 64%, 94%, and 50% of our total revenue was derived from licensees based in Japan but generally covering products sold both within and outside of Japan. In 2003, revenues from our licensees NEC, Sony Ericsson, and Sharp Corporation of Japan (Sharp) were approximately 29%, 29% and 25%, respectively. The loss of revenues and cash payments under any of these license agreements (with the exception of the NEC 2G Agreement, for which all cash has been received and Sharp WCDMA/GSM/3G Agreement) would adversely affect our cash flow and results of operations and could affect our ability to achieve or sustain acceptable levels of profitability.
Licensees Generating 2003 Revenues Exceeding 10% of Total Revenues
ITC is a party to a worldwide, generally nontransferable, royalty-bearing, narrowband CDMA and 3G patent licenses with NEC. Pursuant to its patent license agreement with ITC, NEC paid $19.5 million royalty prepayment in 2002, which was exhausted during first quarter of 2003. Currently, NEC is obligated to pay royalties on a convenience basis on all sales of products covered under the license. This patent license agreement expires upon the last to expire of the patents licensed under the agreement. NEC and ITC are also parties to a separate non-exclusive, worldwide, convenience-based, generally nontransferable, royalty-bearing TDMA patent license agreement (2G), which expires upon the last to expire of the patents licensed under the agreement. In 2002, the parties amended that agreement to provide for the payment by NEC to ITC of $53.0 million, in exchange for which royalty obligations for PHS and PDC products are considered paid-up. We are recognizing revenue associated with this $53.0 million payment on a straight-line basis from the January 2002 agreement date through February 2006, which is the expected period of use by NEC. It is unlikely that NEC would have any further royalty payment obligations under that agreement based on existing paid-up and other unique provisions. In 2003, we recorded revenues of $33.3 million from NEC of which approximately $12.9 million is attributable to our 2G patent license agreement and approximately $20.4 million is attributable to our narrowband CDMA and 3G patent license agreement.
ITC is a party to a worldwide, generally nontransferable, royalty-bearing, convenience-based patent license agreement with Sony Ericsson (Sony Ericsson Agreement) covering sales of terminal units compliant with 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA standards. Under the terms of this license agreement, we received and expect to receive payments totaling $20.3 million related to sales of terminal unit products through December 31, 2002. We recognized this amount as revenue in 2003. For periods thereafter through 2006, Sony Ericsson is obligated under the terms of its agreement to pay ITC a royalty on each licensed product sold. In addition, Sony Ericsson made non-refundable advance royalty payments of approximately $26.2 million to ITC in 2003 covering Sony Ericsson’s projected sales in 2003 and 2004. The prepayment entitles Sony Ericsson to receive royalty rate discounts. We recognize revenue from the prepayment as sales are reported. Once this initial prepayment is exhausted, Sony Ericsson can either make additional prepayments (net of prepayment discounts and any applicable credits) for 24-month periods or pay royalties at the base rate on sales through 2006. This license agreement expires upon the last to expire of the patents licensed under each agreement. In 2003, we recorded revenues of $32.9 million from the Sony Ericsson Agreement.
ITC is a party to a non-exclusive, worldwide, generally nontransferable, royalty-bearing, convenience-based patent license agreement with Sharp (Sharp PDC/PHS Agreement) covering sales of terminal devices compliant with TDMA-based PDC and PHS standards. In second quarter 2003, ITC and Sharp extended the term of the Sharp PDC/PHS Agreement until April 2008. Under the extension, Sharp made a $17.5 million up-front payment consisting of a renewal fee of $2.0 million and a royalty prepayment of $15.5 million. We recognize revenue from the prepayment as sales are reported. Once the royalty prepayment is exhausted, Sharp will be obligated to make additional royalty payments on sales of licensed products sold through early 2008 at the updated rates. The renewal fee is being amortized on a straight-line basis over the five-year term of the extension.
ITC and Sharp are also parties to a separate non-exclusive, worldwide, convenience-based, generally nontransferable, royalty-bearing patent license agreement (Sharp NCDMA/GSM/3G Agreement) covering sales of GSM, narrowband CDMA and 3G products that expires upon the last to expire of the patents licensed under the agreement. In 2003, we recorded revenues of $28.5 million from
Sharp of which approximately $19.5 million is attributable to the Sharp PDC/PHS Agreement and approximately $9.0 million is attributable to the Sharp NCDMA/GSM/3G Agreement. In addition, under an amendment to the Sharp NCDMA/GSM/3G Agreement executed in first quarter 2004, Sharp is obligated to make an up-front payment of approximately $17.8 million in second quarter 2004 as an advance against future royalty obligations.
2003 License Agreements
In addition to the Sony Ericsson Agreement and extension of the Sharp PHS/PDC Agreement described above, during 2003 we entered into four new patent license agreements.
In first quarter 2003, we entered into a worldwide, royalty-bearing, convenience-based patent license agreement with Telefonaktiebolaget LM Ericsson and Ericsson Inc. (Ericsson) covering sales of 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA products. Under the terms of the license agreement with Ericsson, we received and expect to receive payments of approximately $14.0 million related to sales of terminal unit and infrastructure products through December 31, 2002. We recognized the $14.0 million from Ericsson, net of an estimated $3.4 million associated with a claim under an insurance reimbursement agreement as other income in 2003. Under the terms of its agreement, Ericsson is obligated to pay us an annual license fee of $6.0 million for sales of covered infrastructure equipment for each of the years 2003 through 2006. We are recognizing the related revenue on a straight-line basis from first quarter 2003 to fourth quarter 2006. This license agreement expires upon the last to expire of the patents licensed under each agreement.
In second quarter 2003, we entered into a non-exclusive, worldwide, convenience-based, royalty-bearing patent license agreement with Research In Motion Limited (RIM) for terminal units compliant with GSM/GPRS/EDGE standards. Under this agreement, we will receive a royalty on each licensed product sold by RIM worldwide. RIM also made a royalty prepayment and, once that prepayment is exhausted, RIM will be obligated to pay additional royalties on sales of licensed products through January 1, 2008. We recognize revenue associated with this agreement as sales of licensed products are reported.
In second quarter 2003, we entered into a non-exclusive, worldwide, convenience-based, royalty-bearing patent license agreement with Nakayo Telecommunications, Inc. (Nakayo) for terminal units and infrastructure compliant with TDMA-based PHS standards. Under this agreement, we will receive a royalty on each licensed product sold by Nakayo worldwide. Nakayo made a royalty prepayment and paid a one-time license fee. Once the prepayment is exhausted, Nakayo will be obligated to pay additional royalties on sales of licensed products through the life of the licensed patents. We recognize the revenue associated with this agreement as sales of licensed products are reported.
In fourth quarter 2003, we entered into a non-exclusive, worldwide, convenience-based, royalty-bearing patent license agreement with High Tech Computer Corp. (HTC) covering the sale of terminal units and infrastructure compliant with 2G and 2.5G IS-136/GSM/GPRS/EDGE and 3G WCDMA/cdma2000/TD-SCDMA standards. Under this agreement, we will receive a royalty on each licensed product sold by HTC worldwide. HTC is obligated to make a royalty prepayment in first quarter 2004 and, once that prepayment is exhausted, will be obligated to pay additional royalties on sales of licensed products through the life of the licensed patents. We recognize the revenue associated with this agreement as sales of licensed products are reported.
Acquisition of Patent Rights
In third quarter 2003, we entered into an asset purchase agreement with Windshift pursuant to which we acquired substantially all of its assets. Included in the acquisition were patents, patent applications, and know-how related to cdma2000 technology, Smart Antenna, WLAN and other wireless communications technologies, as well as state-of-the art laboratory facilities. The acquisition included patents and patent applications that we had previously acquired under a patent license agreement with Windshift in 2002. The purchase price for the acquisition was $11.5 million, consisting of approximately $10.0 million in cash and cancellation of approximately $1.5 million in outstanding indebtedness owed to us by Windshift. In addition, for approximately five years, Windshift will be entitled to receive 1% and 4%, respectively, of amounts we receive from the licensing or sale of Smart Antenna and 802.11 intellectual property acquired from Windshift in the acquisition
JMO
Mickey
Atown
You are insulting a pile of shit. Eric doesn't even merit being called
a pile of shit. He has lied and lied for years. How come the SEC has not
brought him down is hard to understand what their job is.
JMO
Mickey