Amended to all
My first response to the annoncement and CC is reprinted below. However, please note the addition of a section 5.
After reviewing the PR and listening to the CC, I believe the following issues have created a much different playing field for IDCC as it moves forward with its goals:
1. The door has now been opened for Nok to demonstrate how serious they plan to take the 3g patent challenge. As of Monday, Nok is now free to challenge the validity and non-infringement issues of the IDCC 3g patent claims. The licensee status which blocked such actions in the USA has been erased and a declaratory judgment action may now be maintained. However, Nok certainly can no longer hide behind the licensee status for protection against a willful infringement finding by a judge or a jury. This has added to the risk column substantially and I believe IDCC has gained leverage as a result of the cancellation of the 3g portion of the 1999 PLA. A loss by Nok now can result in punitive damages because willfulness has been added to the equation.
2. MFL rights of Nok will cease with respect to our other 3g licensees. This is a very important change in the game because IDCC can now protect its current licensed and paying customers and insure that Nok will not have an economic advantage over them. I believe this will serve as a goodwill booster with our existing licensees and the industry as a whole.
3. The additional monies from Nok and Samsung will put the industry on notice that IDCC is not only firm and serious about getting paid for their inventions, it now has a legal warchest that will place them on equal footing with the giants in any litigation enforcement matters.
4. The royalty concession for 3g is very small as of yesterday and IDCC could enter into such an agreement under its old 3g license without affecting the MFL clauses of our licensees. The reason for this is that the Nok 1999 license pre-dated all of the existing 3g licenses held by IDCC.
5. As many of you know, I have been very concerned about the Matushita 3g license with respect to its application to the Nok 3g license. This settlement puts my fears to bed because IDCC and Nok are now unlicensed for 3g and the execution of the new license will be post the Matushita license. I believe this places Matushita in the first position in our 3g licensing chain and is no longer a threat to affect any of our subsequent licenses we have closed down the chain via MFL clauses. This is a huge relief to me and any other investors who truly grasp the meaning of MFL rights.
In conclusion, IDCC has received a very impressive sum of money and Nok has received the risks of an ordinary infringer moving forward. This shift in leverage cost IDCC peanuts. Further, our former CTO and others in the industry still believe that TDD will still make a huge mark in wireless and what better company to promote same exists than Nok. "Amicable" is the buzz word and I believe that the recent transaction with Nok will force them to be much more "amicable" due to the shift in the risk/reward ratio of legal challenges down the road. The settlement is very good for IDCC. Finally, Matushita is no longer a time bomb capable of blowing up a parade had another named major licensed 3g causing a trigger of potential royalty rates for Nok. It was in the best interest of IDCC to cancel its 1999 3g license with Nok.
MO
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