IDCC/Ericsson could not be chosen by GD , without both Companies proving the Interoperability of their respective WCDMA contributions..These tests must have been done months prior to both Companies being signed on as Partners..for this 10 year relationship.. WCDMA Modems must interoperate with WCDMA Infrastructure..
The Software License Agreement requires InterDigital to deliver its standards-compliant Wideband Code Division Multiple Access ("WCMDA") modem technology to General Dynamics for incorporation into handheld terminals. The MUOS 3G WCDMA waveform is the air interface technology that will transmit text, voice, video, and multimedia to a wide range of platforms, including handheld terminals with an "always-on" connection that is expected to be significantly faster than previous systems.
Under the agreement, InterDigital expects to receive $18.5 million for delivery and a limited license of its commercial technology solution for use within the government's MUOS and Joint Tactical Radio System programs, maintenance and product training. The agreement also includes options that are exercisable by General Dynamics at various times through March 2006 for additional deliverables for up to $4.0 million, and contains a termination for convenience provision, penalties for delays, and other provisions typical for contracts involving government procurements. The Company anticipates that at least a majority of its MUOS program deliverables and related payments will occur in 2005, excluding the exercise of options for additional deliverables. InterDigital will provide maintenance and support to General Dynamics for three (3) years following delivery of the technology. In addition to the deliverables specifically identified in the agreement, InterDigital has agreed to provide additional future services as requested by General Dynamics under an agreed to pricing structure
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