InterDigital Inc (IDCC)

[Learning2vest]

gman, think the point xdx was making about not expecting to see Ericsson "trigger" a 3G rate for Nokia before we get a ruling/settlement agreement in their 2G arbitration goes something like this;

1) we are pretty sure that "Ericsson" is one of the "named" manufacturers who qualify as "triggers" in the Nokia/IDCC licensing agreements for both 2G and 3G, i.e., a rate agreement with Ericsson on either one of those would trigger the same rate for Nokia.

2) Ericsson continues to be in the infrastructure biz, but has reorganized their handset operation as a joint venture with SONY. As a result, Ericsson is no longer directly involved in the manufacture and sales of 3G handsets, they do that through an ownership interest in the SONY/Ericsson operation.

3) One of the claims asserted by Nokia with regard to IDCC's 2G settlement agreement with Ericsson and SONY/Ericsson last March is that SONY/Ericsson does not qualify as a "named manufacturer" as described in their contract with InterDigital.

4) We think Howard Goldberg is smarter than that and included language to the effect that the provision describing "named manufacturers" in Nokia's contract also said something to the effect of "and all legal successors".

5) Why have SONY/Ericsson play their trigger card for 3G handsets before we find out which way an arbitration panel decides to rule on SONY/Ericsson's 2G handset trigger card?

Looks like InterDigital has a game strategy that requires certain events to unfold in the proper sequence in order to achive the desired effect. Looks to be on track so far IMO.