InterDigital Inc (IDCC)

[ziploc_1]

My take is that NOK had continued to refuse to agree to a rate with IDCC before the resolution of the ERICY dispute. NOK was hoping for an IDCC loss and a rate of zero. This NOK intransigence put temendous pressure on IDCC management to settle with ERICY even for inferior terms. The reason is that IDCC had maintained secrecy about the details of the NOK deal( until recently when they thought better of it) and then since they understood the true nature of the deal, they profited through their selling the stock. (I always wondered why they would sell their stock when IDCC had a deal with NOK that was supposed to soon bring in large royalty payments -now I wonder whether M.G. was sqeezed out as CEO because he couldn't stomach what was going on.)Yes, NOK will pay but I fear they'll probably wait until arbitration is completed in 2004 and then they won't pay all of what they should. In the meantime the message of the ERICY settlement to other telecoms is "Don't pay IDCC. Litigate and you'll get a better deal. Now lets see if management awards itself more options for this "stellar" performance.