InterDigital Inc (IDCC)

[rmarchma]

Ghors re the Federal Insurance dispute you said:

...."Regarding IDCC's acknowledgement. We will probably allege that we were intimidated and coerced. I picked this up from our statements regarding our fear that they would refuse to pay any further litigation expenses"

But what about IDCC's tentative acknowledgement of the 2000 Reimbursement Agreement with Federal AFTER the Ericy settlement. Why did IDCC publicly acknowledge and accrue an insurance reimbursement of $3.4m, 10% of the settlement according to one provision in the Reimbursement Agreement, in the first quarter earnings report? At this point there was NO longer any threat that Federal might quit paying the legal costs, so why publicly acknowledge and accrue liability on an agreement that IDCC believed was legally invalid and unenforceable?

My other question pertains to the amount that IDCC is claiming Federal owes us. It appears to include the $157,000 that IDCC has already reimbursed Federal. I believe that you think IDCC will also try to claim the $5 million of out-of-pocket legal expenses that IDCC had to pay. If Federal limited the per hour legal fees in 1993 to $240, then hasn't the statute of limitations expired on IDCC's right to the $5m extra legal fees that they were willing to pay?