InterDigital Inc (IDCC)

[Jim Mullens]

Jiff, re: “Nokia`s comments about how having to pay for patents is a detriment to doing business”

Really? According to these comments from Sagawa in this WSJ article NOK, doesn’t have any problem on the collecting side.

Dial Time: Hidden Asset Could Let Nokia Capitalize On Boom for 3G Phones


http://www.siliconinvestor.com/readmsg.aspx?msgid=21120403

Snips>>>>>>



But some analysts say Nokia's 3G prospects are much brighter than they appear -- and that could boost its stock price. They argue that Nokia, as one of the primary inventors of the most popular radio technology used in 3G phones, won't have to pay anywhere near as much to license the intellectual property underpinning 3G as many of its rivals, such as LG Electronics Inc. of South Korea.

Those royalties can represent a major cost in the production of a 3G phone. But since Nokia itself holds many of those rights, the company could have a cost advantage of about 15% over some competitors.

"It's an enormous boon to Nokia," says Paul Sagawa, an analyst in New York with stock-research firm Sanford C. Bernstein, which is a unit of Alliance Capital Management LP. He recommends buying Nokia stock. "Much of the investment community seems to discount the sustainability of Nokia's profitability," Mr. Sagawa says. "But that is based on a misunderstanding of the strength of Nokia's intellectual-property position and the barrier it creates for would-be competitors."