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Re: Corp_Buyer post# 49215

Wednesday, 11/19/2003 12:20:53 PM

Wednesday, November 19, 2003 12:20:53 PM

Post# of 433191
"arbitrators setting a 3G rate" for NOK- Here is how I see the arbitration going and WHY NOK does NOT (or should NOT) want to get to arbitration.

NOK will argue that the literal reading of their contract does not apply so Ericy is not a trigger since their intent of the language is that only OEMs representing sufficient market share should set the license rates for NOK.

IDCC will respond that the literal reading would dictate that ERICY is a trigger, but if the arbitrators accept NOK's interpretation, then here is a list of IDCC's 2G licensees and the concensus rate is ___%, so NOK should be bound to pay that rate (which might be higher than the Ericy rate).

Furthermore, IDCC will argue that the market has also spoken as to 3G rates, and here is a list of our 3G licensees which pay a concensus rate of ___%, so NOK should be further bound to pay that rate for 3G (which also will likely be higher than NOK could negotiate with IDCC directly).

So, the very argument that NOK is making (in favor of market share or concensus rates) can be used quite effectively by IDCC to turn around against NOK to request the arbitrators to set all 2G AND 3G rates for NOK.

Accordingly, I do beleive it is NOT in NOK's best interests to go to arbitration and IDCC is in the driver's seat for a settlement with NOK.

Your thoughts?

Regards,
Corp_Buyer





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