InterDigital Inc (IDCC)

[Data_Rox]

Jim -

The 6 million per year is licensing revenue. The sales of infrastructure should also create revenue

I'm pretty sure that the $6M per year til '06 is all we will get for 2G/2.5G infrastructure that E sells. What happens when we get the 3G deal is still open as far as royalties is concerned. It will be covered.

R^)

http://biz.yahoo.com/bw/030317/175481_1.html

ITC expects to receive aggregate payments of approximately $34 million from Ericsson and Sony Ericsson related to sales of terminal and infrastructure products through December 31, 2002. For periods thereafter through 2006, Sony Ericsson will be obligated to pay ITC a royalty on each licensed product sold. In addition, Sony Ericsson will make non-refundable advance royalty payments to ITC in 2003 covering Sony Ericsson's projected sales in 2003 and 2004. In exchange for such prepayments, Sony Ericsson will be given certain royalty rate discounts. Once this initial prepayment is exhausted, Sony Ericsson can either make additional prepayments (net of related discounts) for twenty-four month periods, or pay royalties at the base rate on sales through 2006. Under terms of its agreement, Ericsson will pay ITC an annual license fee of $6 million for sales of covered infrastructure equipment for each of the years 2003 through 2006.