redhot
This is why after all of the smoke clears, I believe they are seeking a free ride for 2002. They want to make their case. If the court documents are unsealed, they hope that they can get a peek at settlement memorandi and create such a stir to force IDCC to succumb for 2002. They are also misreading the insider sales situation. These guys were dumping because they believed that the shareholders would not go for the Ericy settlement despite the NOK/Samsung icing. It was a business decision based on cash flow because W-CDMA was being delayed. They had to make a choice in early 2003 about appealing any adverse rulings by Judge Sanders. Judge Lynn could not overrule because of protocol, but she was going to allow them the opportunity to appeal. Sharp was telling them its been nice since 1997, but we are opting not to renew because we do not see any other payors for this technology. An appeal would mean delay and delay would mean serious burn off of the cash stash and could result in the forced reduction of the workforce that was rolling on W-CDMA and other 3g related matters. Nok had quit them monetarily and the loss of Sharp was very significant. Ericy was also in a bad position with the Harris verdict and relying on getting new business. Articles were in the papers saying the potential of a loss to IDCC and an article/interview with the in house counsel identified the IDCC case as dangerous. 3g timing and the economy were killing both parties. Ericy was having trouble landing contracts because customers were leary of their stay power. There was no collusion involved. Both parties needed to make something happen in order to ride out their mutual future, W-CDMA. It was just business and lo and behold the shareholders of the companies understood. Some old guys like me did not like it, but the idea of opening up a good revenue base while the wait for W-CDMA continued was well accepted by the market. The so called insiders misread this.
They also misread their strategic partner obviously, and this is why we find ourselves in this predicament today. Nok is a toid through and through and cannot be relied upon in a good situation much less a crunch. It is exposing itself rather blatantly and I believe that other companies are taking notice. They will get theirs in the end and it is a shame that IDCC has to deal with them in W-TDD. It would almost be worth telling them that they can have 2002 for their rights to W-TDD. I believe that all of the companies that have experienced the Nok cheap shots will try to avoid them in the future. They could be more of a detriment than an asset.
MO
loop
AI
