InterDigital Inc (IDCC)

[rmarchma]

Rox appears that Nokia got a lower rate than S/E only due to its much higher sales volume. From the transcript of the CC as follows:

...."Compared to our March 2003 press release, the royalty amount is lower than we anticipated due to the tribunal setting a lower handset rate for higher volumes of handset sales. Other than this, the tribunal adopted all of InterDigital's positions as to how to set Nokia's period 2 rate."

There is no other factor or matrix mentioned for Nokia's lower royalty rate in the press releases or the CC, only sales volume. Probably only Nokia can achieve the necessary sales volume to get this arbitration-determined lowest royalty rate. Samsung apparently does not have the sales volume to get the lowest Nokia rate, and thus Samsung will pay the higher S/E handset royalty rate. Therefore, NO other existing 2G MFL clauses should be affected by this arbitration ruling IMO.