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Loop.
Just once, I'd like to see Howard announce a cost reduction plan, or simply reduce expenses without an announcement, and surprise shareholders.
When it comes to the stock price, it doesn't matter what we think.
Based on past earnings, investors see us as not going forward, not standing still, but going backward.
Howard has lost control of the checkbook:
>>>>>>>>>>>>>>
"Operating expenses of $26.6 million (excluding the repositioning charge) increased 27% over second quarter 2003 and 7% over first quarter 2004. The increase in operating expenses over second quarter 2003 was driven, in large part, by additional personnel costs related to both a new long-term incentive compensation program implemented in first half 2004 and annual wage inflation," etc.
CLS.
If SAM was playing hardball, they would have held IDCC's feet to fire on the document issue, IMO.
It may not be a blockbuster move, but it appears to be a break in otherwise hardline negotiations.
IQ. The only thing that bothers me is an apparent "reasonable move" by the enemy.
Playing nice when you're involved in a legal morass doesn't even happen in the movies. LOL.
Consider this, amigos.
If you're fighting a war on two fronts, you could be well advised to pick the weakest of the two enemies, and try to conquer them first.
Afterall, NOK is obsessed with keeping royalty payments in its own pockets, so why take on a 'crazy' like Jorma the Snake?
Howard has said there are ongoing negotiations with SAM, and that could be his strategy.
If he can start with making concessions on documents, craft a settlement that makes SAM happy, without affecting NOK, he could break the logjam.
Whether that affects the timing of the Arb's decision is anyone's guess. But I believe we're fortunate to have two going at the same time, rather than one.
Hobe. Just found it.
3-93CV1809
FYI, Lori has a basket next to her desk, where unposted filings are kept until they are entered.
Jim. The phone number is 214-753-2421. Ask for Lori Greco.
I would have called, but our phone is tied up.
Here's a recap of After Hours trades:
29,000 shares traded, from $25.84 to $26.50.
Five trades for 1,000 to 10,000 shares. (19,000 shares).
40 trades from 100 to 900 shares. (10,000 shares).
Last trade, 2,000 shares at $26.15.
Thanks. I would guess that payment would be in USD.
Otherwise, IDCC would be taking the currency risk.
Mschere.
Jorma will never get over his funk about royalties. But that's his pompous-a$$ problem.
He'd do well to get this behind him, and get on with the business of retaining his #1 position, and stop acting like Howard is going to cave, or simply blow away.
Mschere.
Interesting.
I guess we should keep a close eye on the Euro, to get Jorma's temperature. LOL. Some are saying it's going to 1.35. But the Big Boyz in Europe wouldn't let that continue for long, and are already getting pressure to take action.
However, a decision by the ICC ordering NOK to pay interest on the amount owed, is certainly a possibility. At what rate?
Euro or U.S.?
Although Hicks didn't say so, the discount appeared to be high enough to leave a late penalty out of the contract.
3G.
One wonders whether Jorma is out on the proverbial limb, and getting a little antsy.
If he negotiates with Howard, he might get all or part of the discount, simply by continuing to act like a schmuck. Hicks wouldn't confirm that the discount was a rumored 20%, but I think that's close to the mark.
If the ICC determines the rate and the amount owed
(X-discount), ole' Jorm might come out on the short end of the stick.
Every month that goes by, the amount keeps rising (and is now accelerating) for both NOK and SAM. And if NOK's auditor is on its toes, the reserve should be a bundle, and the P&L should be suffering.
Jim.
Guy Hicks told me months ago, that NOK and SAM sales from Phase II onward, and not eligible for discount.
Only sales from the date a royalty rate is established, and thereafter, are eligible under the contract.
Obviously, Howard could compromize this issue, to get NOK and SAM to come to the table.
Guido.
Remember Rip's words some time ago.
"China is coming around".
But he gave no exit. LOL.
IQ.
I'm quietly applauding Merritt's choice, as well as the breadth of the license.
Taiwan has many friends in China and, despite the political tension, they do billions in business each year.
Having a friend with connections in both countries, who has licensed TD-SCDMA, can only help to keep IDCC's kite flying in the largest wireless country in the world.
To me, it matters not whether the big sign-up comes now, or next year. IDCC is now like a a centipede, with an increasing number of legs finally gripping the ground, making it increasingly difficult for Jorma to dislodge it from its position.
Sorry, but every time I think about this hearing, it really pi$$es me off!
First, the parties blast and reblast at one another about why NOK should/should not get access to the docs, which are contained in files that are five feet high, and fifty feet long.
Then, Judge Lynn's already overloaded clerks have to burn the midnight oil, only to see the parties waste more time and U.S. taxpayer money in a hearing, to discuss the first and second blasts.
All because Mr. Tough Guy has a contractual itch that must be scratched, by a foreign company which has a dispute with a U.S. partner over language in an agreement.
When he was a kid, I suspect Jorma always called his daddy when the other boys started ruffling his feathers.
Thanks. I feel better. . . . . for the time being.
Everyone keeps saying that NOK and SAM have nothing to lose by going to arbitration.
But we keep forgetting, that both lose a cash discount on sales from Jan 2002 until the day they establish a 2G rate. (Assuming the trigger was pulled).
Obviously, Howard could give them the discount as part of a deal. But as we inch closer to 3G, I would think the pressure would be on the boyz from Korea and Finland.
IQ. Gotcha.
If Judge rules against NOK, I keep wondering whether this could move the immovable SAM.
They would no longer need to question the sealed docs, and the prospect of arbitration would also seem a little silly, if they're truly tied to NOK's rate.
And since this only involves 2/2.5G, one of the two had better get on with 3G.
Is Howard romancing SAM, with a deal they can't refuse, to upset their arch-enemy, Mighty Nokia?
I suspect he's trying hard to do so.
IQ.
I often put things off till tomorrow.
Especially if it will have no effect on world events.
Gman.
If Howard hooks NOK/SAM, he won't need to go on the warpath.
But I've added "cash" to the list of reasons that licensing momentum has not materialized. (Merritt).
Gman. Good point about filling your wallet before you sue.
We've used that one for quite some time. LOL.
But I guess it'll pass muster for another year. It's only money.
Mschere.
I don't believe I said anything about WCDMA.
A clean-up squad would have its hands full with GSM, which might pave the way for WCDMA.
BTW, I've heard "Siemens will sign" for more than five years.
My point is this: If you're in the patent business, few customers knock on your door and ask you to send them an invoice for past infringement, or future use.
Ronnie.
Aren't handset royalties based on wholesale prices?
I've even seen some references to a base price, without a battery.
If that's true, are we a little high here?
Mschere.
Whether you're pro or anti-management, one can't help but wonder how IDCC would fair, if they adopted a tough approach to licensing.
Irwin sues mega-chip-maker Texas Instruments, knowing he'll get a countersuit, but plows ahead, nonetheless.
Howard seemingly sits in the toll booth, watching the cars go by without paying, with a "maybe next time" approach.
We know it's far more difficult to license than we're willing to admit. But few IPR companies succeed without flexing their muscles.
Do you believe we should continue this practice?
Ronnie.
On the contrary. You knew you wouldn't learn any deep, dark, secrets. But it was good to hear that the boyz at KOP are still pounding the pavement.
Thanks.
Kevin. Someone may have asked, but are you going to Dallas for the Big Show on November 24?
Thanks.
After QCOM's constant hawking about CDMA, and endless comments here about the huge difference between CDMA-Narrow band vs. WCDMA-wideband, it seemed to me they're cleverly changing their tune, by suddenly implying that it's been one system all along.
DR. Does this release from Qualcomm concerning courses offerred by CDMA University seem strange to you?
More specifically, since when is WCDMA an operating mode of CDMA?
>>>>>>>>>>>>>>>>>>>>>>>>
Offered individually or as a complete set of six DVDs, the instructional courses cover all operating modes of CDMA, including CDMA2000 1X and WCDMA (UMTS), and are designed to help wireless professionals gain a better understanding of CDMA technology, its optimum design, and how it operates in real-world networks.
Why do you say leaving the docs sealed would help Nokia?
Granted, their action has cast serious doubt on IDCC's claims, and left investors wondering what they're up to.
However, if a big dog like Nokia spills its guts in court and loses, I can't imagine how that could be perceived at positive.
Gamco. Nice thought. But NOK says they don't have to pay (yet), because IDCC hasn't complied with the trigger in the contract.
We agree that NOK doesn't like the rate, which is numero uno.
But neither of us really believes that IDCC conspired with the Ericy bunch.
Could it be that NOK is merely hoping that, if they can hook the sealed docs, they might catch a smelly fish?
After all, they haven't told Judge Lynn exactly what they're looking for, because they obviously don't KNOW, themselves.
I find it hard to believe that sealed documents could contain evidence of fraud or conspiracy.
Even if Howard wasn't an attorney and former SEC fella, that's pretty farfetched, IMO.
But let's say he wanted to conspire or defraud Jorma. Why would he do it court, when NOK might get ahold of the evidence. And why would F&J be so blind as to allow it to happen?
I don't know how this talk got started. But the more I think about it, the more I believe NOK has been on thin ice from the start, and brought SAM to the party to increase the pressure on Howard.
If you're playing a good hand against two bluffers, you sweat twice as much, and may want to "call", rather than raise.
OK. I guess that still leaves an appeal. Just didn't want to be surprised at what might happen.
You are fired, Tuck. I told you to teach them a lesson. LOL.
More specifically, I was interested in whether you thought a lawsuit against IDCC was better strategy than appealing Judge Lynn's decision.
Probably a silly question, because we don't know what's behind NOK's action. i.e., something real, or just playing games to get a better rate.
Tucker If you were NOK's attorney and you failed in Dallas, would you start suit against IDCC to cough up the docs?
(Assume you've got orders from Jorma to teach these KOP guys a lesson).
That's why I said "essentially the same."
IDCC must have a formula to adjust MFL rates, since no two manufacturers are alike.
This type arrangement between suppliers and purchasers happens thousands of times a year, and is no big deal.
My concern is not with MFL or how it works, but rather whether NOK has "real" ground to fight the Ericy trigger.
Why is life so complicated?
In one case, I'm Nokia, and license patents from IDCC. I agree to a rate, subject to a MFL clause.
In the other, I'm SAM. I also signed an agreement with IDCC. It's tailored to my particular needs, except for the MFL, which is essentially the same as NOK's.
If IDCC gives a better rate to anyone else, they are contractually obligated to give the same rate to NOK and SAM.
Could SAM's lawyers be playing it safe by attempting to double-check the sealed docs, and NOK's view of the Ericy trigger? Or are they doubling the pressure on Howard, since he made the same brash predictions about what SAM owed, and insulted the boyz in the KoreaHood?
It's got to be something else.
Ericy was named as a leading manufacturer.
IDCC gave NOK a copy of the royalty agreement with Ericy, and NOK went on tilt.
The selloff is already on. Recent trades in AHT at 16.00.