Goodbuddy,

I can't get this news release to load. What does it say?

Might this problem be caused by Nokia inserting too many commas into IDCC's software power algorithms? LOL

This news piece is really music to my ears.

M3S, who is Galleon and what was their game?

Hock,

It was reported several years back that when several members of an East Coast organized crime family were educated on the methods of Wall Street trading, a comment was made that it was better than printing money. I think that organized crime has successfully infiltrated Wall Street and is a significant source of the naked shorting.

That might also be the reason why the SEC is looking the other way.

I only hope Roath is selling to prepare for his retirement. He has milked this cow for much too long. Let's get some fresh blood in the compensation committee.

Jaybeaux,

There are obviously different kinds of trusted networks. I agree that a corporate network would only allow access by its employee's computers that are trusted by the corporate network. But there is also an entire consumer business model to look at as well. My business computer is protected behind the veil of my corporate network.

What about my personal computer at home that is not allowed access to my corporate network? If I use that computer for on-line banking, e-commerce, medical records, personal financial planning, income tax preparation, estate planning, etc., I would like to operate within a trusted network as well, maybe managed by a third party through an Open ID platform. When I boot that computer, it automatically ties to a third party trusted network of my choice and gives me all the advantages and security similar to my corporate network. That third party trusted network can even manage the backup keys to my TPM and render my computer a brick if it is lost or stolen. Would I be willing to pay a monthly subscription for this service? Yes!

Am I totally off base with this line of thinking regarding a third party trusted network?

As a consumer, I'm not worried too much about data loss protection. What I'm worried about is identity theft and password logins. A TPM solution could help to thwart identity theft however, I thought that would have to be rendered through some kind of a third party Open ID platform. Is my thinking correct here? I am willing to pay something to stop the threat of identity theft and to get rid of login passwords.

ExPat,

Not having a techno background, can you shed a little more light on this SaaS opportunity? Is this something that can be marketed to the general public or is this another enterprise play? It seems like we are always going for the 100,000 seat deals and they are really hard to close for a lot of different reasons no one can seem to fathom at the moment.

I think the public is starting to grasp Internet security issues and can be sold with the right product at the right price. The question is how do you get your message out to the general public without spending a fortune on advertising?

Very interesting development. Now if IDCC wins its appeal at the CAFC, what might that mean to Apple who is sitting on over $50 billion in cash? IDCC's patents can go a long way with Apple against all 3G and 4G OEMs and carriers. This is getting to be a no brainer.

Gamco - I agree about the value of IDCC patents to Apple. Also consider the fact that IDCC would only be considered a blip on Apple's radar screen. Apple has over $50 billion in cash. They could buy IDCC for say $3 billion and net $500 million in cash from IDCC. That would be nothing more than pocket change to Apple yet it could put them in a position to receive net royalties from all players other than QCOM and they would not have to give up their touch screen patents. Maybe Apple is just waiting to see what happens between IDCC and Nokia at the CAFC before making a play for IDCC. In other words, why get into the middle of that dog fight right now.

It looks as if IDCC may be green at the close today. I suspect that when people see that a date has been set for oral arguments at the CAFC in December, they will sit on their shares through the end of the year. I was about ready to sell some trading shares until I saw M3S notice of the date set for oral arguments. Now I think I'll just sit on my long-term and trading shares until we get a feel for the tone of the oral arguments.

The shorts will probably be busy trying to limit gains in share price through the end of the year.

This board seems to be as quiet today as the stock exchange. Where did everybody go. Did I miss the trip to Vegas? (LOL)

What is a LEO? I believe there is a cease and desist order attachded to the ITC ruling if Luckerns claims interpretation is reversed by the CAFC and Nokia is found to be infringing IDCC patents. IMO, that would considerably change things at the negotiating table with Nokia to the extent that a deal would get done in pretty short order. I still believe IDCC will grant some concessions to Nokia though even with an IDCC win at the CAFC. Hopefully, those concessions would be negligible. I don't want to see IDCC management give up more than 10% of past 3G royalties though unless we get a ten plus year deal including 4G royalties for its LTE patent portfolio.

That is an interesting question but I don't think it will be IDCC's decision to take the CAFC hearing through to completion. IMO, IDCC is holding to their guns on a 3G rate so Nokia has little choice but to see it through to the end. In other words, the rate will not change much with an IDCC win. I think this may be a pretty good possibility based on prior comments by Merritt in earlier CCs alluding to IDCC's position with its 3G patent portfolio and its desire to get a fair rate for that portfolio.

With an IDCC win at the CAFC, IDCC will be in a position of great strength at the negotiating table but I think Nokia will still win some concessions on past and future 3G royalties. The question is, will this also bring Motorola and ERICY to the table as many suspect? I surely don't want to give these SOBs the same rates as Nokia. A win should also solidify follow-up deals with LG and Samsung at rates equivalent to their original deals with maybe some additional volume discounts.

At least we now have a pretty definite fime frame for a conclusion of the ITC complaint filed by IDCC. That in and of itself may cause some greater than average volatility in stock price between now and the end of the year. I wonder how many IDCCers will be attenting the CAFC oral arguments.

Does anyone know if Wave has patented the self healing process for the MBR and Hypervisor?

Hock,

I think the uptick rule was also eliminated at the request of the Fed Chairman to make sure the market never experienced irrational exhuberence again.

DR,

In this somewhat sideways market, there is little opportunity to make money so the institutions have figured out a way to make money loaning shares to shorts. I believe they get a pretty good fee for loaning out millions of shares to the shorts. In the meantime, they get to hold their shares for the long-term to wait out the litigation. The fact that the institutions still own the shares indicates to me that they feel good about IDCC's position in the litigation ring.

I am also one of the believers that the MENS cabal is behind a sizeable piece of the short interest. I believe they wanted to keep the share price in check to force IDCC management into stipulating to a lower royalty rate. So far it hasn't worked but the share price has been successfully suppressed. I think the recent deal between Motorola and Nokia adds a little credibility to this theory.

The bigger brokerages won't come on board until the litigation is behind us. Hopefully, that will come very soon. I still don't know why IDCC hasn't brought suit against Motorola though unless they are somehow tied to the hip of Nokia. Motorola has had a free ride for the last fifteen years. I just wish we knew the whole story behind this saga.

NJ,

Send it to wwarinner@wgacpa.com

I can split it and send it to Jim.

GAB,

Options don't need to be excercised to be called away. Unless the option seller buys his/her calls back at market value, the shares will be called automatically by the options MM at the stated price designated by the option as long as they are "in the money options".

I see a 50% increase in short interest since July 15. What has happened in that time frame to warrant a significant short attack? Is this just shorting done by computer programmed trading or is there a short hedge fund that does not believe IDCC will win the CAFC appeal. Even if IDCC doesn't win the appeal, they can still take the new patents back to the ITC. All we lose is time.

Who stands to gain the most by keeping IDCC stock in check? This is setting up to be a blood bath for someone. Is there any way to determine whether the short sellers are domestic or foreign?

Also consider the fact that we have increased in price about 25% since the short attack began. This is an amazing story that will unwind over time.

jimmylee,

We have been given the same info from our tax planners. If I thought the 15% capital gains tax was going to be raised in 2011, I would be locking in capital gains in 2010. Fortunately and unfortunately, all my investments are in a retirement account that is tax deferred and will eventually be taxed as ordinary income as I begin taking withdrawls.

What I would like to see is a couple of the insiders take some of that gain and buy back shares in the open market. What kind of a bullish signal would that portray?

Wavedreamer,

I am just waiting for Wave to come out with a security solution for the consumer rather than just concentrate on deals with OEMs. I was hoping this could be done in conjunction with OpenID. I'll bet there is a substantial market for security and trust services for consumers who are not tied to a corporate network. The consumer needs security and trust services and off site management and assistance with stored keys. Wave could be the first to fill that space.

I would love to get rid of all of my passwords. I'll bet I have at least 100 different passwords for everything from banking to travel, retail stores, credit cards, publications, financial services, medical services and social media. It's getting cumbersome to maintain my passwords listing.

Come on Wave, make my life a lot easier.

Tsunami07,

HID Global announced the acquisition of Actividentity (ACTI)today. ACTI is involved in software security but I can't seem to find out what kind of software security they are involved with.

It looks like they are involved with smart cards and USB tokens. Looks like old technology to me. I hope we hit the radar screed some day.

Prepayments are normally recognized as unearned income or deferred revenues (liabilities) for financial accounting purposes and are amortized to revenues over the life of the agreement. The treatment of deferred revenues is different for tax purposes.
For tax purposes, deferred revenues are recognized as income when received and a deferred tax asset is recognized for the book and tax timing differences. I think the cash balance should already reflect the taxes imposed on the deferred revenues recognized from the prepayments.

Ellix,

I read an article lately that said the market meltdown we had earlier this year was caused by program trading based strictly on volumes. In other words, the programs were designed to buy or sell based on volumes and completely ignored price fluctuations. I believe Waddell & Reed was also mentioned as the culprit in a $4 billion sell order that sent the markets reeling.

What gets my goat is that 25% of the trades that day were reversed due to unintended consequences. If people use programs to trade, they deserve whatever they get. I sure as hell hope no trades were reversed for the benefit of Waddell & Reed.

Data,

What is the story behind ACTC? Last quarter's earnings were of blowout proportion. I see lots of news releases concerning settlements and licensing deals. I read their financials but do not know anything about them. Can you give me more information? Are these revenues ongoing or one-time settlement deals?

Bill

I agree with you about the dividend. A 3% dividend at this juncture would bring a lot of interest into this stock and that represents only about $31 million per year.

I agree with you. The MMs have a choke hold on the share price. There is too much volume over the past several days to stay in a $.01 to $.02 trading range. IMO, we will not break out until the MM short position is gone. I should have seen this coming after the Russell rebalancing and gotten out before the take down. Would love to have repurchased my lot at $2.00. I have been adding over the past week though.

Goodbuddy,

It looks like your article is a bit of a hoax. It comes from a website called phonienews. I wish it were true though.

I think I just woke up from April 1st.

I put in a bid for 5,000 shares at $1.99. They filled about 2,000 but won't give me the rest.

From another Board...

In the interest of all Longs..

By: Roger Schultz[Wall Street Journal]

http://www.phonienews.com/12316/the-nail-in-wallstreets-coffin/

"The Nail In Wall Street's Coffin'.

As the present administration helps our largest banks tread water in an ocean they themselves created, a tidal wave has been spotted just over the horizon.

A new, stock clearing house will open in the U.S. in March that will right many of the wrongs perpetrated by the market makers, brokers, and hedge funds conducting business on the NASDAQ and OTC markets. The NASDAQ OMX has been approved to start the clearing of stocks next month. Currently, 92% of all stocks in the U.S. markets are cleared by the DTC, which is an arm of the Federal Reserve.

The problem for the market makers, brokers, and hedge funds, is all of their NSS (naked short selling) will have to be covered when companies jump to the No Nonsense NASDAQ OMX from the DTC, that for years looked the other way when this practice occurred.

A naked short sell is perpetrated when a buy order is placed by an individual for a stock and a market maker pulls those stocks out of thin air and puts the imaginary stocks into the individuals broker account. This practice has bankrupted countless marginal companies in the last 8 years. Many, if not most market makers are owned by the large banks and brokers on Wall street.

This practice of naked short selling artificially diluted the outstanding shares, making each share worth less causing a death spiral. At this point the brokers and hedge funds sell short, betting that the stock would further decline, which was a no brainer of course.

Almost all of these affected companies did not survive, at least in their original form. However, the companies that did survive this savage market manipulation will soon leave the DTC and join the new clearing house of the NASDAQ OMX. I know of one CEO that spent over 750K of his own money to save his shell OTC company from this type of manipulation and will most likely have a very healthy profit for his troubles.

When this transpires in March, ALL OF THOSE AIR SHARES MUST BE COVERED by the brokers or market makers AND all those hedge fund short sells MUST BE COVERED AS WELL.

This will put the nail in the coffin of dozens of hedge funds, markets makers, and brokers throughout the U.S. The chickens are finally coming home to roost and they've grown to the size of an Emu.

The greed imbedded in our stock market will be proved to have been unprecedented in human history.

PS:

Has anyone heard about this? Does this refer to March 2010 or March 2011?

Can Wave force the shorts to cover by moving to the NASDAQ OMX exchange. I hope all companies move to the new exchange to bury the banks, brokers and hedge funds that are behind the massive short selling.

We also need a bill introduced to keep brokerage houses from loaning shares held in cash accounts without the investors permission. This is pure greed at its finest. It's time to make Wall Street accountable.

Hurd mistook sexual harrassment training for porn movies. After watching the first one, he remarked "I could do that with my secretary." Now you've heard the rest of the story. LOL

How many people believe IDCC tied its fate with SNE and Motorola to the outcome of the Nokia litigation? I think that is why they have not pursued either of these companies in litigation. They said they stopped writing these types of agreements but I don't think they told us the truth.

awk,

The only problem that you did not foresee is the state of the economy. Businesses just don't see security as a critical need in this crappy economy and security is being deemed an overhead that can be put on the back burner. We won't see any significant changes until the economy improves or legislation requiring security enhancement is passed. I think legislation will come first and we all know at what pace that will happen.

Unfortunately, the state of the economy is not just domestic, it is global so we appear to be at a global standstill.

dmiller,

Nokia would do better if it partnered with IDCC and began to use technology that the consumer wants rather than try to find work arounds using technology that the consumer doesn't want. Look at the existing momentum of IDCC's other licensees. Nokia has selected an alternate path for the sake of saving a few bucks on royalties and it is not proving successful. The question is, how long will it take them to realize they are on a dead-end road and how long will it take them to turn the vehicle around. It might already be too late for them to get back into the race.

They are still the king of 2G though. It's just unfortunate that more revenues are derived from the prepaid minutes than from the phones.

BofA could very well be one of the new customers SS referred to at the ASH that Wave is trying to close. Maybe we will hear something about their plans in the next thirty days or so.

At least three of the directors are holding the granted shares. That is bullish. I follow several other companies whose directors are awarded stock grants and sell immediately. I like the fact that these directors have elected to hold the stock.

I'm afraid we have a MM that has a large uncovered short position due to the Russell rebalancing in the $3.50 to $3.60 price range. Until this short position is covered, I do not believe the MM will voluntarily let the stock price return to that range or they will be forced to cover at a loss. If the MM gets too greedy, I have some dry powder available for use.

Some of that volume at the close may be attributable to the Russel index rebalancing that occurred today. It's been happening to a lot of other stocks that I follow. Some of those stocks reflected additional volume today of nearly 5% of outstanding shares. I didn't think the Russel rebalancing would have that kind of volume impact but I guess it can for companies that are new entrants into the index.

I am impressed with your forecasting abilities. It looks like you called both the low and the high.

M3S,

It's difficult to decipher this release in terms of added production capacity of IAC. It says IAC (Taiwan) sold 35 million units in 2006. Then it says IAC (Jiangning) has production capacity of 30 million units. I interpret that to be in addition to the volumes of IAC Taiwan. Does anyone know what IDCC makes annually from IAC Taiwan? It would appear that the royalties from IAC should nearly double when Jiangning operates at anywhere near capacity.

You got it. Since Wall Street discounts everything IDCC does, that is the only way to push additional value to the shareholder without impacting the stock price negatively. The shorts would also be on the hook for the stock dividend and would have to match it increasing their short shares and loans to the brokerage houses.