InterDigital Inc (IDCC)

[Learning2vest]

LOOP, gonna offer a very different line of thinking about InterDigital's current situation. It may be just some Saturday morning "sunshine", but then again, maybe not.

There is one very simple idea(and one that we like a lot) that would, could, and hopefully, DOES explain just about everything we have been taking issue with recently. Delays in licensing 3G, the Ericsson settlement results so far, Nokia's irrational behaviour, and even the lack of support for WTDD deployment could all be caused by one very simple thing.

You ready? It's right in front of us IMO. Not sure why we have been looking at all the sparks flying out of the fire it's causing, and never talked about the reason for the fire in the first place. InterDigital is taking all this heat because it is demanding to be paid a fair rate for 3G. IDCC management is in a full scale war with a bunch of wireless industry "bad boys" over royalty rates on W-CDMA. They want to be paid a certain rate for their contributions to W-CDMA FDD, and they are NOT backing down. THAT is what all the other issues are about, and seeing Nokia get dirty-fighting desperate is a sure sign that InterDigital is winning the fight IMO.

When just a 1% difference in a royalty rate translates into BILLIONS of dollars over the expected life of that technology folks can get mighty worked up, and some tight-wads like Nokia might even do crazy stuff. W-CDMA is such a technology, and InterDigital has rightful claim to it's fair share of the revenues that will be generated from using it. I think all this bad news stuff we are seeing right now is just dust being kicked up in the fight IDCC's hard-nosed managment is having over 3G royalty rates.

I think IDCC is gonna win that fight, and when they do one day, everything else is going to be just dandy. Now, wouldn't that be a Daisy?