InterDigital Inc (IDCC)

[warbil]

One of the things that concerned me in the arbitration hearings was Nokia's argument concerning the term "relevant factors" in the ERICY agreement. Initially, Nokia implied that the term "relevant factors" applied to the number of patents being licensed. I believe Nokia later implied that the term may apply to price differentials for volume levels.

Assuming ERICY is ruled a valid trigger (I believe they are), the amount of the award will depend on the arbitration panel's interpretation of the term "relevant factors" in the ERICY agreement. If the term "relevant factors" does not apply to patent quantities or market share, I would anticipate $340 - $360 million in royalties plus $20 - $30 million in interest.

If the panel adjusts Nokia's rate for volume discounts using the "relevant factors" argument. You might cut that in half.