InterDigital Inc (IDCC)

[techinvester]

I side with Loop. Although I am grateful for some reimbursement for improper usage of IDCC patents, we have been waiting for years and the resulting royalty rate is less than stellar. Across the multiple boards we have discussed unfulfilled promises or expectations always waiting for the next .... I believe progress has been made over the years but this example by virtue of settlement does not in my estimation promote urgency for others to pay royalties up front. Nobody seems to have considered the time value of money or lost opportunity costs. I do not have confidence that by virtue of this settlement Ericson will provide a pro IDCC 3G royalty rate. Where is the leverage? I hold out hope that the cross licensing will bear fruit but will wait to see the details without speculating. I also agree with others that based on the low Ericson royalty rate, Nokia and Samsung will attempt to negotiate lower royalty rates. Possibly the cross licensing will insulate the potential risk.

techinvester