InterDigital Inc (IDCC)

[magillagorilla]

8-K: IDCC Fed'l Insur. Co. Demands Arbitration in Suit [delayed]

Ridgeland, MS, NOV 04, 2003 (EventX/Knobias.com via COMTEX) -- Interdigital Communications Corp (NASDAQ NM : IDCC) filed an 8-K on 11/4, in which the Company reported that Federal Insurance Company, the insurance provider for the settled litigation involving Ericsson, Inc., has delivered to the Company and InterDigital Technology Corporation a demand for arbitration under the Pennsylvania Uniform Arbitration Act.

As previously reported on the Company's Form 10-Q for the Quarter ended June 30, 2003, Federal is seeking reimbursement of approximately $28 million it alleges is owed under an insurance reimbursement agreement for attorneys' fees and expenses paid by Federal in the Ericsson litigation.

The Company has filed an action in United States District Court for the Eastern District of Pennsylvania seeking a declaratory judgment that the reimbursement agreement is void and unenforceable, seeking reimbursement of attorneys' fees and expenses which have not been reimbursed by Federal and which were paid directly by the Company in connection with the Ericsson litigation, and damages for Federal's bad faith and breach of obligations under the insurance policy.

In the alternative, in the event the reimbursement agreement is found to be valid and enforceable, the Company is seeking a declaratory judgment that Federal is entitled to reimbursement based only on certain portions of amounts received by the Company from Ericsson under the settlement of the Ericsson litigation.