InterDigital Inc (IDCC)

[Desert dweller]

ams, are you really that ignorant about insurance issues over in this country, specifically as it relates to IDCC?

IDCC did not have patent litigation insurance. IDDC's insurance carrier covered the cost of the litigation for one reason, ERICY SUED IDCC. The insurance carrier was therefore bound by the terms of its standard insurance policy to represent IDCC.

As far as IDCC's insurance such as General Liability, Workers Comp, Health Insurance, Property insurance etc, every one of them have increased over the past decade as is normal for every company doing business in the US. My guess is that they have doubled, tripled or more due to the trends in the industry.

As I have stated before, I work for a small closely held business. In the past year our general liability insurance doubled. Over the past 5 years, our health insurance has tripled and our workers compensation insurance has held relatively steady due to where we are located. In the state of Arizona, the workers compensation program is one of the cheapest in the entire country. Other states are not so fortunate.

So while you may want to believe that our insurance costs should have dropped since we haven't been involved in new litigation since 1993 (other than LU just recently), this premise is just plain wrong. Insurance rates in this country have been exploding. Insurance rate increases go in cycles of boom and bust and currently we are in a boom cycle for insurance companies. IDCC has increased its staff over the past few years to almost double. One of the rating determinants is the number of employees and revenue. For a public co. I would also guess that another factor is the market cap, for which IDCC's average market cap over the past 3 years has risen, also driving insurance costs.

The only insurance cost that the company felt compelled to disclose as increasing at such a rapid rate as requiring disclosure is the D&O insurance. Do some research on this type of insurance and if you are as smart as I think you might be, you will realize you are showing your ignorance in your posts concerning the D&O insurance. Maybe your ignorance is caused by you not living here and not understanding how the insurance industry in the US works, or maybe it is just that you like to whine and complain about management. I don't know the reason and I don't know what your motives actually are.