InterDigital Inc (IDCC)

[techinvester]

OD, I believe Mickey is referring to the 3 paragraphs below referenced in my post last year. The issue of indemnification was debated numerous times in the past with some believing the 1994 settlement provided the “enabler” for QCOM IF they were the indemnifier while others believed that since the scope “appeared” to be limited to narrow band, indemnification was not feasible for wideband. I will defer to Jim, Loop and Data for further discussion and/or clarification.

My personal opinion is that this discussion and most others similar in nature are OBE. Technology and the standards have moved forward. I do not believe rehashing the discussion has a lot of value. Would I like IDCC to get paid for all past and future 2G infringement, Yes. Do I think a 1 time lump sum payment will drive the sustainable share price, No. Would I trade all 2G infringement for a win-win FRAND agreement for all 3G & 4G, Yes. Per slide 5 of IDCC’s 6/26/2012 NASDAQ OMX 28th Investor Program in London presentation http://files.shareholder.com/downloads/IDCC/1684874725x0x579151/edf4a718-5d90-4191-9994-dd46a3058504/Nasdaq%20June%202012.pdf, 50% of sales for 2011 were estimated to be 2G. Going forward 2G declines, 4G increases, and 3G stays constant for the next 3 years. Further more, none of this matters if IDCC can not monetize the patents as discussed earlier. JMHO

Text excerpt from 1994
In return for a one-time payment by QUALCOMM of $5.5 million, ITC has granted to QUALCOMM a fully paid, royalty-free, worldwide license to use and to sublicense ITC's existing CDMA patents and certain future CDMA patents to make and sell products for IS-95-type wireless applications, including, but not limited to, cellular, PCS, wireless local-loop and satellite applications.

QUALCOMM has the right to sublicense ITC's CDMA patents so that QUALCOMM's licensees will be free to manufacture and sell IS-95-type CDMA products without requiring any payment to ITC. ITC's patents concerning cellular overlay and interference cancellation are not licensed to QUALCOMM.

"This settlement agreement permits us to focus our efforts on commercializing our CDMA products and technology without diverting our attention to time-consuming and costly litigation. QUALCOMM and our licensees can build and sell IS-95-type CDMA equipment around the world without concern for patent-infringement suits by InterDigital."