InterDigital Inc (IDCC)

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(REUTERS) Interdigital, Ericsson reach patent settlement

KING OF PRUSSIA, Pa., March 17 (Reuters) - InterDigital
Communications Corp. <IDCC.O>, a designer of wireless
technology and product platforms, said on Monday it reached a
patent and royalty settlement with Swedish telecommunications
equipment company Ericsson <ERICb.ST>.
The agreement, with Ericsson and Sony Ericsson Mobile
Communications AB, covers the sale of certain terminal units
and infrastructure products under so-called second-generation
and 2.5-generation advanced wireless technologies, but it
excludes any third-generation standards.
Shares of InterDigital jumped $4.32, or 32 percent, to
$18.08 in morning trading on Nasdaq.
The deal resolves a long-standing patent infringement
litigation with Ericsson scheduled for trial in May.
InterDigital expects to receive about $34 million from Ericsson
and Sony Ericsson related to sales of terminal and
infrastructure products through 2002. Sony Ericsson will pay
InterDigital a royalty on each licensed product sold through
2006.
The pact also established the financial terms and royalty
obligations for Nokia <NOK1V.HE> and Samsung Electronics Co.
Ltd. <05930.KS> on 2G and 2.5G technologies. InterDigital
expects Nokia's royalty obligation for 2002 could be in the
range of $100 million to $120 million and Samsung's royalty
obligation for 2002 could be in the range of $22 million to $27
million. The aggregate prepayment of royalties from Nokia and
Samsung for 2003 and 2004 could be in the range of $180 million
to $220 million.
((Reporting by Jessica Hall, editing by Steve Orlofsky;
Reuters Messaging: [e-mail];
215-922-1086))

REUTERS
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