InterDigital Inc (IDCC)

[The Count]

Very good post JDBJMB,

Good analysis of the situation. I agree with most of what you say. One place where I have a different opinion is the new ITC action. The way I see this happening is as follows.

IDCC decided to take another shot at the ITC after the surprising decision with Nokia. They filed some new, improved patents clarifying the language to defeat Nokia's interpretation. In June they received the last patent, so at that point the legal team put together the filing. Meanwhile, the Nortel auction caused a paradigm shift in the value of patents. Google, while preparing for the Nortel auction, wisely looked at alternatives to the Nortel patents as they prepared their bidding strategy. When the bidding rose above what they felt was appropriate value, they bowed out and contacted IDCC. It's possible they contacted IDCC prior to auction as well. Once Google lost out on the Nortel patents, they turned to IDCC. At that point, IDCC engages M&A help and makes the announcement that the company is up for sale. By then, the ITC filing is materially complete. While IDCC is optimistic about the prospects for selling the company, the cost of filing the ITC action is minimal and it starts the clock running. That way if IDCC does not sell itself or the patents, or the purchaser wants to use the patents offensively, the process is in motion.

Thanks for posting your thoughts. Don't be shy about sharing your ideas in the future.