Replies to post #40061 on InterDigital Inc (IDCC)

[0nceinalifetime]

I'm not going to speak for Data but that's not what IDCC management said. The story from potential licensees is "we have a licensing with company A and company A indemnify us from having to license with you."

Clearly this is speaking to an across the board CDMA indemnification. This has all been hashed out before right on this board. You can start here:

http://www.investorshub.com/boards/read_msg.asp?message_id=923933

Once

[goblue]

ronny/rox

However IDCC could still have let's say 4 more essential patents aplicable to CDMA2000 and 24 more essential patents for WCDMA, in addition to the 5 sublicensed patents. These additional essential CDMA patents would NOT be subject to indemnification. Therefore a potential licensee would still need an IDCC license to produce standard-compliant CDMA2000 and WCDMA products. However, the potential licensee would want to pay a lower royalty rate so as not to double-pay for the same 5 essential patents, used in my illustration, which are already licensed through the indemnifier.

why is it that QCOM's sh-t dont stink? why can't IDCC adopt the 'license one, license them all' policy just like them?......

[JimLur]

Ronnie, I could be wrong and if so I’m sure Rox will amend. Many years back on the Frezza forum the term was used licensing a bundle of patents.

I think what Rox is affording is IDCC wants to license their bundle but because of Qualcomm’s agreement with IDCC many company’s already have a right to use certain patents and Qualcomm could indemnify those that they licensed.

If so IDCC may only be able to license the portion of their portfolio that is not licensed to the Q.

[Data_Rox]

Ronny - correct.

[specbid123]

I don't see the problem here. So IDCC gets paid for the patents that cannot be indemnified. Then whats to prevent the licensee to stop paying the original licensor of the patent its royalty and pay a lower royalty rate to IDCC for the same patent. IDCC has a new revenue stream from the patents which currently they have not been collecting on.
This way the vendor using the patent currently ,stops payment of royalty to qualcomm and starts paying at a cheaper rate to IDCC.
If then qualcomm opts to give the patent up for free then IDCC is not in any worse shape then they were before.
This indemnification augument seems like a bit of nonsense,the only loser will be qualcomm.