InterDigital Inc (IDCC)

[olddog967]

loophole: Well stated, I have long argued about the supposed $3 billion owed by Microsoft/ Nokia.

As usual IDCC’s settlement announcement leaves many unanswered question, one of which is the period covered by the limited release of past sales.

“Pursuant to the Settlement Agreement, in exchange for cash and other commitments from Microsoft, InterDigital has agreed to a limited release on the past sales of certain Microsoft products, including Nokia terminal units sold during a limited period of time. InterDigital and Microsoft also have agreed to terms for dismissal by them and Nokia Corporation of all outstanding litigation……”

What we know from the 2nd qtr 10-Q is that as part of the agreement Microsoft paid paid IDCC approximately $46 million for past sales.

(“The $59.9 million increase in total revenue was primarily driven by the increase in past patent royalties of $46.6 million primarily due to the Microsoft Settlement Agreement signed during second quarter 2017.”)

Since all current litigation between the parties was dismissed, any legal attempt to collect for past infringement would require the filing on new cases. Since damages for past infringement is limited to the six years prior to the filing of the complaint, even if the settlement period is limited and new cases were filed immediately (which I doubt), damages at most would be limited to Microsoft/Nokia production since mid 2011. In that regard the following cite has a chart showing Microsoft/Nokia’s quarterly mobile phone sales from 2010 thru 1st qtr 2016. As can be seen there was a very significant drop in mobile phone sales from over 100 million units per quarter to approximately 20 million units.

http://www.businessinsider.com/nokia-mobile-phone-sales-by-year-2016-5