InterDigital Inc (IDCC)

[whizzeresq]

Laranger--You really can't say whether Ericy-Sony is at a cost disadvantage versus Nokia by paying for 2G now until you see the Nokia 2G arbitration result. Ericy-Sony does have the benefit of a prepayment discount by paying now, which, presumably, Nokia has lost by going to arbitration. In addition, Nokia may have to pay interest on any award which will also compound Nokia's potential excess costs versus Ericy.

I would assume Ericy-Sony is awaiting the results of the arbitration with regard to the trigger issue. If it is found to be a trigger for 2G, then it could likewise assume that it would be a trigger for Nokia's 3g obligations to IDCC through 2006 and would not be at a disadvantage through then.

As I stated in my previous post, you also will see that Ericy-Sony could gain a competitive advantage versus Nokia by licensing now (after arbitration) given the risks to Nokia of postponing any 3G sales in the US until after its 3G lawsuit is resolved and the risks to Nokia of IDCC bringing 3G litigation against Nokia in Europe.