InterDigital Inc (IDCC)

[olddog967]

dndodd/slacker: The $27 million is for past production by Pegatron of Apple products through 30 June 2013, that are not covered by the Apple license. Pegatron's license my have different per unit royalty rates for products where the OEM has a license, and those that are unlicensed.

From the 10-Q:


In early fourth quarter 2013, we received an award in an arbitration that we initiated with a licensee to resolve a dispute surrounding an existing patent license agreement (the “PLA”). Because the PLA is a fixed-fee agreement, we continued to recognize revenue from this licensee during the course of the dispute. The arbitration award declared that certain products are not licensed under the PLA. As a result of this declaration, it is now clear that certain products not licensed under the PLA but manufactured by a supplier of the licensee are licensed under the per-unit patent license agreement we have with that supplier. Accordingly, we expect to recognize approximately $27.0 million of past sales revenue from this supplier in fourth quarter 2013 related to such products sold through June 30, 2013.