InterDigital Inc (IDCC)

[Gamco]

Form 8-K for INTERDIGITAL COMMUNICATIONS CORP


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8-Sep-2005

Entry into Material Agreement



Item 1.01. Entry into a Material Definitive Agreement.
(a) On September 1, 2005, InterDigital Communications Corporation's patent holding subsidiaries (collectively, "InterDigital") entered into a worldwide, non-transferable, non-exclusive, patent license agreement with Kyocera Wireless Corp., and its parent corporation, Kyocera Corporation, (collectively, "Kyocera"). The five-year 3G patent license agreement covers the sale of terminal units compliant with cdma2000(R) technology and its extensions from July 1, 2004, onward. InterDigital Technology Corporation, a wholly-owned subsidiary of InterDigital Communications Corporation, and Kyocera Corporation are also parties to a TDMA-technology patent license agreement, which remains in place.

Under the terms of the new patent license agreement and subject to certain Kyocera options to convert the license to a royalty-bearing basis, Kyocera is obligated to pay InterDigital a license fee of $50 million, which covers licensed product sales up to a specified threshold dollar amount. The $50 million fee is payable in four installments, including an initial payment of $20 million due in the third quarter of 2005, and three additional $10 million installments due no later than the third quarters of 2006, 2007, and 2008, respectively.

cdma2000(R) is a registered trademark of the Telecommunications Industry Association (TIA-USA).