InterDigital Inc (IDCC)

[Hardball]

SJRatty: "Why Wouldn't a Company Wait and See How That Pans Out?"

Well, I think that you certainly do have a point. It is why ERICy was SUPPOSED to be a "watershed event" in that it showed IDCC had the will to prevail. Of course, instead, perhaps it showed something else--that it is possible to fight IDCC and get them to settle for pennies on the dollar.

BUT one reason companies MIGHT want to sign now instead of later is that they can get a discount now, but perhaps now later (unless of course they litigate themselves and force IDCC to settle). One would think that given the uncertainty of outcome (*whatever uncertainty there is--people here seem to think there isn't very much at all; I personally KNOW there is ALWAYS uncertainty in litigation) that IDCC would give licensees NOW some discount which might not be available to them later. Every time IDCC IP is vindicated, it becomes stronger and so does IDCC so long as we are able to show that we WILL prevail.

Of course one has to take into account also the net present value of licensing now and paying now vs later--that benefits IDCC and the certainty of getting money now versus later.

Of course signing a license agreement appears to be one thing--one of the lessons IDCC obviously has been taught (and hopefully has learned) is that a license and an agreement might still not result in payments without litigation.

I think it remains to be seen if even an arb victory will result in full payment--or more litigation and perhaps a settlement later. One thing people haven't really discussed here that I've seen is what happens if IDCC wins the arb BUT Nok appeals. The fact that there are limited grounds to do so certainly doesn't mean that it won't happen. If NOK's strategy is to settle for less than full payment, and to pay later rather than sooner, the current arb may not be the end of it.