InterDigital Inc (IDCC)

[Learning2vest]

Ranger-

Agree that Nokia has been using every legal maneuver they can think of to avoid paying up.

Good thing InterDigital was smart enough to include very specific terms in the arbitration clause back when they drafted Nokia's 1999 license contracts(i.e., "binding arbitrations" to be conducted by the ICC in New York).

It's been a long dance, but the ICC Arbitration Court has stated that they will deliver a Final Judgment on Nokia's 2G rates and payment obligations on or before May 31, 2005.

That reality, and expectations of what is ahead for 3G, has to be putting pressure on Nokia's management to finally get serious in negotiating the best deal possible.

I'm hoping that InterDigital is not interested in listening to any settlement proposal from Nokia at this point unless it addresses both 2G and 3G. Like you pointed out, it took a whole lot of fighting to get them pinned in this corner,... so why let them out with anything less than a "win/win" deal across the board.

Given the "accounting provisions" already established on Nokia's books it seems like the two firm's could work out a set of settlement terms that would allow BOTH sides to declare victory, i.e., spread the payments over a long enough period to let Nokia reverse some of the near term accounting provisions.

Doing that would allow InterDigital's 2G payments to be treated as "recurring revenues"(which the market understands how to value), instead of as a one time "lump sum" cash payment the market is never sure about. At the same time, Nokia's accounting of those extended payments against the established provisions on their books would allow some flexibility in managing the near term earnings impact.

Still no way to figure out WHAT is going to happen with Nokia, but it sure is nice to finally be certain that SOMETHING is going to happen by May 31st.