InterDigital Inc (IDCC)

[loophole73]

texb

Upon final award, Nok will have to send the funds to the ICC or give notice of appeal in the Federal District in NY. IDCC may also have the binding award reduced to judgment by filing same in Court. Nok can prevent IDCC from executing upon the judgment by posting a bond or filing a chapter 11 bankruptcy.

We spent 3 days posting the difficulties of winning an appeal from a binding arbitration award. It would take the discovery that some of the tribunal were large IDCC shareholders, holders of large financial interests in companies that did business with IDCC on a regular basis, funneling information ex parte to IDCC regarding the thoughts of fellow tribunal members, so against foreign corporations doing business in the USA that a fair decision was not possible, completely ignoring the law in reaching the final award or promised a pay off or kickback from IDCC in exchange for partiality in making the award.

Nobody can prevent another from filing an appeal and this is the reason for the disclosure in the PR and 8k presented today. If Nok decides to appeal, we are looking at another 6 months to a year due to reasonable time for discovery ie requests for admissions and depositions of parties with relevant knowledge of the matters set forth in the appeal.

As a practical matter, IDCC just needs to get the award because the success rate of any appeal is minimal and the solvency of Nok is not in question.

I believe that my original assessment of the May 31 deadline was bolstered today by the March 31 draft award news. I believe that the Tribunal was approached by the parties requesting time for settlement purposes. I believe the Tribunal forwarded the request to the ICC and they responded to the Tribunal setting a drop dead date. The Tribunal is moving forward and will produce a draft award to the ICC by March 31. I believe the parties are now on notice that failing to settle the issues, the final award will be issued on May 31, 2005.

My only concern about IDCC is the 1st quarter guidance of 30 mil in revenue. Perhaps they are shooting low and plan to raise the guidance. If not, I am at a loss to figure out how this can be accurate because all of our paying licencees have had excellent results in the second half of 2004. Almost every post by Mschere has revealed amazing growth in revenue by our customers which normally means a like amount of royalty growth for IDCC.

I was unable to listen to the CC, but I will try to read the transcript tonight. Hopefully, Mr. Fagan was prepared with his figures this time.

MO
loop