Replies to post #38163 on InterDigital Inc (IDCC)

[zitboy_rev_11_3]

but if we sued those people with integrity tomorrow I would be very happy.

i'll second that motion

[captainslog]

Loop. 3G by 2006!!! What in the world! If they don't have 3G licenses by 2003, we're dead in the water.

[ziploc_1]

The Idcc Nok arbitration proceedings offer a forum where the parties can continue negotiations. Idcc wants arbitration because it inserts a timetable for the dispute. Nok, being the payor would probably not opt for it if they didn't have to participate. Idcc has a choice. They can either hang tough or not. Based on past performances, they will probably make some concessions and settle. Nok will use delaying tactics as much as the panel allows them to, feeling that the delay puts more pressure on Idcc. Success in 3G licensing would certainly lessen the pressure on Idcc to make concessions in the Nok dispute. I don't think we longs should focus on the time that arbitration might take but rather on our success in getting new licensees, esp 3G. I agree with Loop that if Ericy will not pay us for their use of 3G IPR we need to start suit against them sooner rather than later. If the settlement with Nok includes a 3G license, then we would probably be able to quickly settle the 3G suit with Ericy.

[ziploc_1]

Loop

I believe that with this much money involved, Nok is looking for whatever concessions it can get and will make whatever arguments it can, specious or not, towards that goal.

You stated:
" I still believe that Nok is seeking to get a free ride for 2002. I just do not believe that they are upset with the royalty rates in the Ericy licenses. I must qualify that last sentence with an "if IDCC has essential patent claims in TDMA/GSM". My own take on this is that the essentiality of Idcc patent claims was affimed when Ericy decided to pay and the arbitration does not involve that issue.

[mschere]

Loop;IMO: Samuel May (and I also may have come around to your way of thinking.) If IDCC is forced to give Nokia a free pass on 2002..A new 2G contract could be dated 1/1/03..Nokia would owe for 2003 ..$110 million based on their announced numbers..In exchange..for IDCC agreeing during the start of Arbitration,not to utilize Ericsson as the 2G OR 3G trigger ..Nokia has the right to set an agreed bilateral 3G rate as per their 1999 3G license..That would bring in an additional Non-recurring $40 million for pre-2003 sales..and $30 Million for 2003 3G sales..PLUS $10 Million for the CDMA portion of their 3G license..That will produce $150 Million in 2003 recurring revenue from Nokia and $30 Million in recurring 2003 royalty from Samsung..for their 2G sales... Nokia..will have saved $100 million..and leave the issue of the 2 Year MFL pre-payment open...The only difference is that Samuel May has based his numbers on this being accomplished in 2004..and I ..being "Hopeful" anticipate a late September 2003 announcement..

I still believe that Nok is seeking to get a free ride for 2002. I just do not believe that they are upset with the royalty rates in the Ericy licenses..