InterDigital Inc (IDCC)

[rmarchma]

Specbid re licensee stopping royalty payments to QCOM you said:

..."Then whats to prevent the licensee to stop paying the original licensor of the patent its royalty and pay a lower royalty rate to IDCC for the same patent....This way the vendor using the patent currently ,stops payment of royalty to qualcomm and starts paying at a cheaper rate to IDCC."

QCOM has a policy that if you use only 1 of Q's patents you have to license them all, and pay the same fixed royalty rate. Therefore, a QCOM licensee pays the same royalty rate to Q whether they license 1 patent or thousands of patents. IDCC's licensing does not work the same way. IDCC has different rates for different standards, different rates for different customers, different rates for different geographic locations, and perhaps different rates for different patents or bundled patents licensed. In essence IDCC customizes a rate structure to each licensee.