InterDigital Inc (IDCC)

[ziploc_1]

Twelvebees; Nok, Ericy, and other OEM's have certain interests in both competing and in cooperating with each other. Nok has not made a secret of its aim to cap royalty rates. I doubt that Ericy and other OEM's would object to this. In a market where margins are small, even a saving of half of one per cent by withholding royalty payments is meaningful. Ericy would love to pay zero for 3G and definitely does not not want to pay while its competitor, Nok, gets away free. Ericy is probably hoping that Idcc loses the Nok arbitration and is not considered a trigger. This would give Ericy a good excuse to never pay for 3G. However, even if Idcc wins, Ericy will remember that they resisted paying Idcc for 2G for over a decade, even when their own engineers recommended that they should pay, and in the end, they actually did pretty well for themselves. Who knows whether they might feel emboldened to try the same thing for 3G, especially if they do not see much of a downside.