InterDigital Inc (IDCC)

[ziploc_1]

Looking at arbitration from Idcc point of view

Nok, in crafting the 1999 deal, essentially dared Idcc to get paid by another EOM. They said, "We don't think you can do it but, if you do, we'll pay you". To Nok's surprise, Idcc did it. They got Ericy to pay. Now Nok wants to reneg on the deal. The 1/2 % royalty rate is small enough but Nok is looking for an angle to get out of their signed commitment and to return to square one where they were saying "We'll pay you nothing". Idcc really has no choice here. If they back down now, they suffer repercussions with other OEM's due to their MFL (Much Future Litigation) agreements. How much can you split 1/2 % before it becomes trivial. If Idcc gives in on this, what happens to the rates for 3G. Either these patents are worth something or they're worth nothing. Nok has already declared that they will lead the fight to cap aggregate patent royalties at 5 %. If they were to succeed in this they would probably lower the cap to 1 %. Rather than pick on QCOM, they have "zeroed" in on a smaller opponent like Idcc as a first victim in their fight, just as any bully would.