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Learning2vest

05/20/06 11:58 AM

#155829 RE: mschere #155826

mschere - I agree. IMO there are some "open switches" written into LG's license agreement.

Would guess that one of those provisions has something to say about the upper limits on sales covered under LG's initial 5 yr payment structure. Why else would the word "threshold" even be mentioned in IDCC's PR regarding that licensing agreement?
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olddog967

05/20/06 2:41 PM

#155831 RE: mschere #155826

mschere: While it is true the the current LG PLA does not cover unlimited 3G sales, any additional royalty will only occur under specific circumstances. Except in regard to CDMA 2000 infrastructure (see PLA article 2.4) there is no so called "threshold" amount in the PLA. In addition, while Article III of the license is titled "LICENSE FEE AND ADDITIONAL ROYALTY", when you read the article you will see that the only additional royalty is if LG acquires other terminal unit businesses.

IMO:This indicates to THIS Investor that LG's $285 Million is not for an UNLIMITED amount of 3G sales through the anniversary date of their 5 Year 3G license.