InterDigital Inc (IDCC)

[Learning2vest]

Two sources I like are post 15162 on this thread(copied below), and Nokia's own Y/E 2004 accounting report.

It shows that Nokia had taken a 358 million EUR accounting charge against their earnings for something that includes "provisions for infringement of intellectual property" in the heading. Their 1st qtr 2005 accounting is not as detailed as what they give in Y/E reports, but it does show that Nokia's "All Provisions" number was up about 100 Million EUR from Y/E 2004.

One other encouraging clue has come from remarks attributed to some of Nokia's legal counsel as they answered questions in court proceedings. "Nokia did not expect Ericsson to lose.... InterDigital is asking Nokia to pay $500 million" or something to that effect. Hearing about that led me to believe that Nokia and InterDigital are fighting over exactly HOW MUCH Nokia must pay InterDigital for 2G based on the Ericsson and SNE settlement agreement.

We are left to guess how much Nokia is willing to pay, how much the arb panel will award, and what it would take to get InterDigital's agreement to settle. I think they are more hung up on InterDigital's demands for a 3G rate before agreeing to a settlement more than any 2G problems.


Here is the post I mentioned;
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I quote the first line of his(i.e., analyst Tom Carpenter) report...

"...We spoke with a NOK reresentitive yesterday who confirmed that NOK has a 2g/GSM/TDMA licesnsing obligation withinterdigital for 2002 through 2006..."