InterDigital Inc (IDCC)

[jai]

mschere really nice read.

Doesn't the United States have laws against companies joining together in collusion to cause price fixing?

"Recently, Nokia, Ericsson and Samsung created a joint venture in order to cap royalties on WCDMA handsets, and Nokia reiterated this goal during its mid-year strategy update in June. This alliance could make it more difficult for InterDigital to negotiate licensing contracts with leading handset OEMs. However, as InterDigital gains more customers, we believe the company strengthens its negotiating position. Further, portions of the WCDMA standard contain wording from InterDigital’s patents, and thus the company should receive a portion of the WCDMA equipment market. While we do expect InterDigital to receive royalty payments from 3G
equipment sales, the size of contracts with OEMs and the timing of finalizing such contracts create some uncertainty to InterDigital’s longer-term financial model."