InterDigital Inc (IDCC)

[rmarchma]

Warbil re Apple questions you asked:

..."When does this (Apple)agreement expire?

Apple entered into a 7 year fixed-fee license with IDCC effective in June 2007, which expires in June 2014.

...."Also, do you think the new licenses signed in 2011 are included in the first quarter revenue guidance?"

New licenses signed in the first quarter of 2011, such as Acer, will not be included in IDCC's first quarter revenues, if they are per-unit licensees. IDCC has a lag of one quarter with per-unit licenses, because IDCC records the revenue in the period that quarterly unit sales reports are received by IDCC, not in the period earned by the licensee. Per-unit licensees would be reporting their 4th quarter 2010 sales to IDCC in the 1st quarter of 2011, which will be included in IDCC's 1st quarter revenues. New first quarter per-unit licensees would not report their 1st quarter unit sales to IDCC until the 2nd quarter.

If any new licensees are fixed-fee licensees, then their revenue will be prorated in the quarter that they signed based upon the effective date of the new agreement. Thus, there is NOT a one quarter lag for fixed-fee licensees. Fixed-fee licensees do not even file quarterly unit sales reports with IDCC, because their agreements are time-based and not unit-based.