InterDigital Inc (IDCC)

[0nceinalifetime]

You are missing the main point of those who cry foul of the insider selling (including the first analyst to ask a question during the quarterly conference call).

"If Nokia had accepted the 2G rate set by terms of the Settlement and not asked for arbitration (which Management clearly expected to be the likeliest result), IDCC would be trading at twice or more the current share price. It could then be said that "insiders" were selling BELOW the ascending share price for almost the entire past year."

Nokia did not accept that the Ericsson agreement defined the rate they would pay. The analyst who asked the question about insider selling made it clear that the concern was that management may have been tipped off during the license negotiations that Nokia was not seeing it IDCC's way and decided to unload some of their shares before that information was official and public.

And when you think about it, it's pretty obvious management must have known that Nokia did not see the Ericsson agreement as defining their royalty obligations or else the negotiations wouldn't have taken so long. If there was no disagreement there would be no need for protracted negotiations. Remember, over a year ago IDCC management characterized the Nokia agreement as being very definite, not wishy-washy.

So your scenario whereby Nokia did agree to the Ericy rate is completely irrelevant because if they had agreed, there would be no charges of insider selling before the bad news was made public (because there wouldn't be any bad news).

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