InterDigital Inc (IDCC)

[rmarchma]

Sinnet re Nokia's MFL and LG's 2G royalty you said:

...."The way the company treats the LG money makes me wonder that if nokia will request to hook its 2g licence with LG's past 2g due(which is zero) based on nokia's MFL status..."

The way I understand MFL clauses is that they can only go forward, if a subsequent licensee gets a better royalty rate. In other words, Nokia would have to accept LG's same royalty rate going forward from January 18, 2006. I think LG has a convenience license for all of IDCC's 2G and 3G IPR, which they pay a designated amount. Rox estimated this to be about $1 per 2G or 3G handset, based on LG's total current handset unit sales. If Nokia wants to exercise the MFL using LG, then they will have to pay about $1 royalty per handset going forward from January 18, 2006.