InterDigital Inc (IDCC)

[mschere]

Question..Could I have the benefit of your thinking regarding statements made recently by IDCC Management in SEC filings?

1..What is the significance of the option that IDCC acquired from Ericsson and is this not the first element of a 3G license?

Ericsson also has granted an option to InterDigital for a Reference Design License and Support Agreement for Ericsson's GSM/GPRS/UMTS platform.

2.What does Howard Golberg mean when he talks about "creating enterprise value with a product-oriented business relationship"?


"The licensing of Ericsson and Sony Ericsson is an important accomplishment within our strategic framework and a milestone event for our Company," said Howard Goldberg, President and Chief Executive Officer. "With respect to our intellectual property activities, these agreements increase our global leverage in patent licensing, affirm the market value of our technology and patented inventions, and set the financial terms that will accelerate the receipt of royalty payments from Nokia and Samsung. We also are taking a positive step forward with Ericsson consistent with our broader strategic objective of creating enterprise value by combining patent and technology licensing with a product-oriented business relationship."

3..Could you explain in simple terms what is IDCC's stated goals to sell actual physical products..as to what they are..the potential market for these products and the posible monetary benefits that may acrue from the sale of these products?

Based on our FDD and TDD technology Platforms and development activities, we intend to develop 3G products for sale to telecommunications equipment manufacturers either directly, through our partners, or through other third parties. Additionally, from these efforts we have identified potential new business opportunities, such as direct wireless applications in government programs. The products are expected to include ASICs, reference designs, software and combined RF/Baseband boards. Our business plan is to develop the products either alone or through partnering relationships with appropriate companies. We also seek to license the technology to third parties on a royalty-bearing basis, (See, “-Business Activities, Patent and Technology Licensing”) and we are continuing to seek additional partnerships with wireless communication market leaders resulting in technology or product development or sales relationships.