InterDigital Inc (IDCC)

[rmarchma]

Mickey re $1 to $2 per handset you said:

....."I used a conclusion if the amount came out to be as rmarahma seemed to think then Merritt had lied to us."

Now hold on a minute. The per unit amount for LG actually did come out to what I said it did, significantly less than $1 per handset, and the per handset amount for RIMM was less than $1 per handset. You have to be very careful when someone claims that IDCC will get $1 to $2 royalty per handset, without any qualifications.

There are several qualifiers to that general statement. First the $1 to $2 per handset applies only to 3G, not to 2G, and we are still not sure how it applies to combination 2G/3G licenses, such as RIMM. Second it applies to per-unit 3G licenses, but probably not to fixed-fee licenses, such as LG and Apple. Third the current range is actually an average, not a minimmum/maximum range, so that some current 3G licenses might pay less than $1 per 3G handset. Fourth the unlicensed Tier 1 manufacturers could possibly be licensed in the future at something less than the current average per handset. IDCC current 3G licensees are all Tier 2 manufacturers at this point, except LG, which is a 2G/3G fixed-fee licensee. Fifth the $1 to $2 in the future will probably be a combination of licensing royalty and product revenues, such as, chips.