InterDigital Inc (IDCC)

[rmarchma]

Rox re Lucent

If a fixed-fee contract expires within a quarter, then the fixed-fee amount is prorated based upon the number of actual days that the license was in effect during that particular quarter. The same type of proration occurs when a fixed-fee license is intially signed also. That's why Samsung's fixed-fee license had a lower prorated fixed amount in its initial first quarter than any subsequent quarter. In regard to Lucent, it appears to me IDCC earned a full quarter of fixed-fees in the fourth quarter amounting to $700,000, the same as the third quarter. Therefore, it implies to me that the Lucent license was in effect during the entire fourth quarter.