InterDigital Inc (IDCC)

[rmarchma]

Estimating IDCC's royalty rates and amounts. From the latest 10k:

"Royalty formulas include flat dollar rates per unit, percentage of sales, and percentage of sales with caps. Formulas vary by other factors including territory, standards, quantities, and date sold."

It is very difficult to estimate IDCC's royalty rates and royalty amounts per unit due to all the numerous variables as indicated in the above statement. IDCC's royalty structure is nothing like Qualcomm's one standard rate for all, no matter what. Being able to offer unique type licensing rate provisions for each licensee, might offer some flexability advantages for IDCC. However, so many non-standard variations between different licensees can cause some problems also.