Alley: Like everyone else who is long, I also hope for a quick resolution at the high end of expectations; but , I also believe that unless that happens management must be held accountable
Some say that the arbitration is just a delaying tactic on Nokia’s part. I doubt that. If the arbitration is just a matter of determining whether the Ericsson rates establish Nokia’s rates, I doubt that it would be taking 18 months. Apparently Nokia has raised some questions that the arbitration panel is taking seriously. To me this indicates that there may have been flaws in the original license negotiations and terms.
I also wonder why a negotiated settlement was not reached, after the Ericsson settlement. From what I have read on the board they were close to a settlement but for some reason it was not finalized. We tend to blame Nokia, but since we do not know what actually happened it could just as easily have been caused by some IDCC miscalculation during the negotiations.
It has been stated that the arbitration has not affected the negotiation with other potential licensees. I don’t think anyone believes that. The failure to sign additional licensees may have resulted in the loss of unknown millions of dollars. While I anticipate that the licenses will eventually be signed, including payment for past royalties due, apparently IDCC’s record for collecting past due royalties hasn’t been too good.
There is no question that IDCC’s management is in a tough position when trying to get royalties from much larger and unwilling companies, but IMO how good management really is will not be determined until we know the results of the Nokia arbitration, and more licenses at appropriate terms are signed.
