InterDigital Inc (IDCC)

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Anatomy of a deal
1. Nokia is in dire straits with its balance sheet at this time and will do anything to avoid payments for past infringement.
2. Idcc definitely does not want another low
fixed rate license. A compromise would look something like this:
1. Nokia would pay for past infringement with interest, but over a period of three or four years at which time Nokia hopefully would be much better able to afford these payments.
2. Idcc would accept a per unit license from Nok for several years at a fair rate and with a clause specifying an increasing rate as volume increased, gambling that Nokia would do as well as it predicts and achieve increasing sales volumes, making the deal more rewarding for Idcc in return for deferring past payments for several years