InterDigital Inc (IDCC)

[mschere]

IMO:The LG rate going forward for 2G and 3G are quite different..The $1 per phone, is at best a BLENDED rate..NEC and all IDCC 3G Licensees pay 1% for WCDMA..IMO:LG will pay the same WCDMA RATE regardless if their future sales are 20 Million WCDMA units per year or 100 Million WCDMA units per year.They all probably have a cap on a certain (unknown to us) wholsale price.I am specifying WCDMA, since I believe that IDCC has negotiated different cdma2000 deals to get Sanyo, Kyocera and LG on board.


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.