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Monday, March 24, 2008 6:23:18 PM
The box that Nok has built now mandates a settlement. It is just too dangerous to make Interdigital mad enough to take them to the mountain top. Here is there problem.
1. Samsung is left all by itself in front of the ITC. Samsung has a trail of bribery charges and other malfeasance which has tarnished its reputation around the world. Samsung has been grooming the USA market and has a solid relationship with several carriers. Samsung cannot risk losing it all in the USA and they will be forced to settle in order to maintain status quo and execute its business plans. In an anticipated monkey see, monkey do belief, Nok is well aware that SNE may also enter into a 3g license because it also has plans to compete in the USA 3g market.
2. Nok was relying on the UK case to defeat IDCC and a firecracker went off in their hand. Not only did the now deceased and ultra-conservative judge with a reputation for ripping issued patents consider that IDCC had two essential patents under the UMTS standards, he also opined that if IDCC had proceeded under the second definition of ETSI (the USA doctrine of equivalents), he believed they could have proven more patents to be essential. Suddenly we are in front of the ITC and it is believed that IDCC will be successful on another 4 patents as far as validity and infringement is concerned. This reveals the reality of at least 6 and probably several more patent claims staring Nok in the face should IDCC take them to the mountain top. Here it is important to remember that the expert for Nok has testified in another matter that one essential patent should be worth 1% and two essential patents should be worth 3 1/2%. Hello, does a clear and present risk jump right out at you like it does me? Add to this additional dollars for willful infringement and you really have something serious to lose now. The only way that IDCC would take them all the way is if Samsung and SNE crater and settle and the odds of that happening have just increased with Nok leaving them all alone in the ITC at this time.
3. Nok is not about to get themselves into the same situation they found themselves in 2g. They were relying on Ericy/SNE to carry the ball against IDCC and the reliance cost them money. They cannot rely on Samsung to defeat the patent claims contained in the 4 patents that are common between them in the ITC complaints.
With the above realities looking them in the eye and knowing that the 1999 license theory is a smoke screen, the final walls of the box have been erected and the lid three quarters complete. They cannot allow IDCC to have 60% of 3g licensed and taking them the distance in this licensing game. The ultimate costs and risk of an adverse result are way too high now. The smart and prudent business decision is to resolve the differences and move forward knowing that they have at least as good a rate as their competitors, both new and old.
MO
loop
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