InterDigital Inc (IDCC)

[ziploc_1]

Reasons for IDCC and NOK eventual arbitration

I am making the following assumptions about the present negotiations between IDCC and NOK: First NOK is going to take a tough position in order to save tens and possibly hundreds of millions of dollars. Secondly, whatever decision IDCC management makes,it must, most importantly protect them from undue criticism and even loss of their jobs.
IDCC accepted a disappointing settlement from Ericy, softened by the declaration that they had a clear and binding contract with NOK to pay up. To accept a settlement from NOK on the order of the ERICY one would make them look like fools or worse no matter how they spin it. NOK has been prominent amongst telecomm manufacturers in the fight to keep royalties low. They would look weak if they caved in to IDCC without a fight. If this goes to arbitration, the losing side can point to the arbitrator and blame him.