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Re: ziploc_1 post# 60783

Sunday, 03/07/2004 11:02:21 AM

Sunday, March 07, 2004 11:02:21 AM

Post# of 436111
zip, here is the way I'm understanding the answer to your "If Lu had been ready to pay for WCDMA, why wouldn't Idcc have run with this and triggered the setting of a royalty rate from Nok" question in the ref post. IMO the answer to that kind of question is a very important concept for us to get comfortable with these days.

From what I can understand, the current management at InterDigital is done with licensing "pieces and parts" of their intellectual property. The company is working hard to recover from a 2G licensing mess left after prior management negotiated whatever kind of license anybody was willing to pay something for. Each time they did that everybody else wanted to negotiate a better deal, or the others just kept talking forever without completing an agreement. MFL provisions in some contracts and "paid up" status on different things with various firms created more legal tangles to deal with.

Not any more. IMO InterDigital has one basic licensing agreement they are willing to sign these days, and everybody gets the same terms and conditions. IDCC has drawn a DEEP LINE IN THE SAND right there. Nobody gets a new license agreement with InterDigital until they 1.) agree to license ALL IPR owned by InterDigital in ALL of the STANDARDS the manufacturer has EVER sold products, 2.) reach agreement and pay up on any past royalities due, and 3.) satisfy InterDigital's accounting requirements for timely and accurate reporting of future product sales activities.

I like that new approach a lot. IMO it's worth waiting awhile for the payoffs to begin under that kind of license agreement because the results will end up being a LOT BETTER over the long term. And most of the waiting appears to be over.

- Nokia and Samsung have been delaying payments under 2G contract terms that were agreed to with InterDigital way back in 1999. Tic Toc, that cake is about to come out of the arbitration oven.

- Lucent has a problem agreeing to pay InterDigital for their use of seven Tantivy patents in CDMA2000 products. OK, let's go down to Marshall, Texas and see what an East Texas Federal Court has to say about that. Justice in patent litigation comes swiftly down there. LOL! I'm loving what I'm seeing as we wait for licenses to be signed.

- Take a look at the terms announced for Sharp and NEC when they signed 3G license agreements with InterDigital. Looks like broad coverage of both 2G and 3G standards, and paid up agreements for all past usage in those standards. Then take a look at InterDigital's revenues from those two firms since those agreements went into effect. The revenues coming from NEC and Sharp make a mighty strong argument for wanting to see InterDigital remain firm as long as it takes to get the same kind of license agreements in place with everybody else.



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