InterDigital Inc (IDCC)

[revlis]

plumear,

We do not know if IDCC will be or will not be collecting for TD-SCDMA. There are 2 payment plan for royalties:1. Royalties on licensed products (6.2)and 2. Minimum royalties (6.3). They may not be exclusive, one or the other but both.

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Compensation to IDCC.

Article VI

Compensation


6.1 Initial License Fee. In consideration of licenses herein granted and the services provided by InterDigital in performing the Project, Spreadtrum shall pay InterDigital an initial license fee of [***], payable as follows based on the milestones set forth in the Statement of Work:


6.1.1 [***]


6.1.2 [***]


6.1.3 [***]


6.1.4 [***]


6.1.5 [***]


6.1.6 [***]

InterDigital will invoice Spreadtrum for all installments of the Initial License Fee when due, and Spreadtrum will pay such invoices via wire transfer net/30 days from receipt of invoice.


6.2 Royalty on Sales of Licensed Products. Spreadtrum will pay InterDigital a per-unit earned royalty on all Units Sold by Spreadtrum and/or its Affiliates in accordance with the following:


6.2.1 [***]


6.2.2 [***]


6.2.3 [***]


6.2.4 [***]


6.2.5 [***]



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FOIA confidential treatment requested: [***] indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to such omitted portions.


6.3 Minimum Royalties. Spreadtrum will pay InterDigital minimum royalties, payable as follows:


6.3.1 [***]


6.3.2 [***]


6.3.3 [***]


6.3.4 [***]


6.3.5 [***]

For purposes of this Section 6.3, “First Commercial Sale” shall mean the first arms-length commercial sale or other transfer for consideration by Spreadtrum or any Spreadtrum Affiliate of a non-prototype Licensed Product.

http://www.sec.gov/Archives/edgar/data/1287950/000119312508143817/dex411.htm