Arima arbitration over Motorola phones. Yeah IDCC finally gets paid for some Motorola phones.
Interdigital eyeing Super patent cockroaches, Arima (8101) second-quarter profit shrink. Arima announced, after hearing the American Arbitration Association, Arima Interdigital should pay royalties of about 573 million yuan, even Arima has already set aside to prepare, still faces more than 160 million yuan in the gap, and good old factory in Wujiang Arima sell into profit given them an estimated this gap will narrow to 4,000 to 5,000 yuan, but the second-quarter earnings will thus cut probably inevitable.
Since the mobile phone industry in Taiwan ODM prevailed, ODM industry in order to save costs, usually negotiated with the client key patent royalties paid by the customer. Even in recent years, the domestic mobile phone industry operators countries in order to fight the order, began with several major signing key patent owners to pay royalties, but the domestic industry still ODM will follow the previous model, however, as long as customers in certain shipments finds ways different foundry partner Taiwan, OEM partners on the royalties will be kicked iron, Arima is a prime example.
Arima said, InterDigital and Arima signed contract wireless communications technology patents, InterDigital due to differences in contract interpretation issues, Arima filed for arbitration in the United States and request payment of license fees by the American Arbitration Association arbitration tribunal ruling Arima unpaid royalties of approximately $ 19 million, equivalent to NT $ 573 million yuan, Arima had to pay attorneys' fees during the arbitration.
It is understood, Interdigital eyeing early in 2011 Arima, Arima for Motorola to design ways to semi-finished products are exported to Brazil, and complete final assembly of several models in Brazil plant, unpaid royalties, citing requirements Arima pay, Arima, although during the arbitration to seek the assistance of Motorola, Motorola believes that the rights of semi-finished gold should be paid by Motorola, Arima and thus lose the arbitration.
Arima further said Arima Although the case is ready to put out, but in the amount exceeds the reserve, the estimated cost of 166 million yuan will increase, although there is no impact on operations, but the second-quarter earnings will be paid, recognized columns.
But the good news is that Arima old Wujiang plant has been successfully punishment, gain on disposal of approximately 24.7 million yuan, the equivalent of nearly 120 billion Taiwan dollars, how much you can make up for losses caused by Interdigital royalty payments in the second quarter operations should not be As to incur losses, but profitability is hard not to shrink.
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