InterDigital Inc (IDCC)

[Data_Rox]

link to filing

http://www.sec.gov/Archives/edgar/data/354913/000115752306000521/0001157523-06-000521.txt


Item 1.01 Entry into a Material Definitive Agreement

On January 18, 2006, InterDigital Communications Corporation's patent
holding subsidiaries (collectively, InterDigital) entered into a worldwide,
non-transferable, non-exclusive, patent license agreement with LG Electronics
Inc. (LG). The five-year patent license agreement, effective January 1, 2006,
covers the sale, both prior to January 1, 2006 and during the five-year term, of
terminal units compliant with all TDMA-based Second Generation (2G) standards
(including TIA-136, GSM, GPRS, and EDGE) and all Third Generation (3G) standards
(including WCDMA, TD-SCDMA and cdma2000(R) technology and its extensions), and
infrastructure compliant with cdma2000(R) technology and its extensions up to a
limited threshold amount, under all patents owned by InterDigital prior to and
during the term of the license. Under the terms of the patent license agreement,
LG is obligated to pay InterDigital three equal installments of $95 million, in
the first quarters of 2006, 2007, and 2008, respectively. At the end of the five
year term, LG will receive a paid-up license to sell single-mode GSM/GPRS/EDGE
terminal units under the patents included under the license.

The Company is currently evaluating its accounting related to this
agreement and will provide guidance at an appropriate time.

cdma2000(R) is a registered trademark of the Telecommunications Industry
Association (TIA-USA).