Wednesday, February 19, 2003 8:08:17 AM
For example, our patent
license agreement with Nokia, provided that, in exchange for a payment of $31.5
million, Nokia's royalty obligation to ITC had been paid-up generally with
respect to certain 2G and certain 3G covered products through the end of 2001.
This agreement provides that the parties will agree to the royalty payments to
be made thereafter. In the absence of agreement on royalty rates between the
parties, the MFL provision provides that Nokia's royalty obligations will be
defined by and subject to certain risks and uncertainties of the relevant
licensing terms applicable to certain other leading manufacturers of wireless
telecommunications equipment, none of whom are yet licensed by ITC. Nokia also
has the option to elect to apply the relevant licensing terms applicable to
certain other manufacturers, but has not yet done so. The license agreement
provides that until such time as the royalty rate is determined, royalties for
the period commencing in 2002 will accrue.
mschere
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