InterDigital Inc (IDCC): Great Article on LTE Patent Royalty Rate...

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NukeJohn

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Monday, 04/11/2011 5:44:23 PM

Monday, April 11, 2011 5:44:23 PM

Great Article on LTE Patent Royalty Rates

Not sure if this was posted here, as I haven't had time to read the board much over the past couple of weeks. I found this article posted on the IV IDCC board (courtesy of sonsub7 at IV).

http://www.lesi.org/images/article/b0d264d1-732e-4db7-a187-f3bae26b20ae.pdf

According to this article, IDCC leads the way with 437 declared LTE essential patents (but unlike some others they haven't declared a desired LTE royalty rate yet). While some organizations (like Motorola) seem to be asking for unreasonable rates based on the amount of essential patents they have, I don't think IDCC will go for the jugular from the companies that settle relatively early. IDCC should get at least 1.5% on LTE IMHO from the companies that settle early....but the ones they have to litigate with may have to pay a whole lot more.

Just think, using the NPV for LTE patents that we heard from Bill Merritt in the recent conference calls ($900M for each .1%)....then IDCC should have a current market cap of ~13.5 Billion based on their LTE IP alone.

JMHO,

NJ