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redbarn

08/07/03 1:53 AM

#40095 RE: loophole73 #40094


Why does IDCC insist on two year up front royalty payments when it could offer an equivalent alternative pay as you go rate? The insistence on an up front discounted rate make sense to me when a company is cash flow weak. That is not IDCC's position today.

Data_Rox

08/09/03 10:42 AM

#40432 RE: loophole73 #40094

loop

thanks to some of the RBers (gargoyle came in with it 1st)...here's a snip from a post from March of last year. Seemed to fit part of what you were discussing.

BTW - please don't leave this board !

http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB00004&board=CLB00004&read=88479&s...

.....manufacturers have come off a year of declining sales and reduced profitability, '02 doesn't look that much better. What if you were one of those manufacturers looking to increase profitability and IDCC came knocking ? Oh yeah, here's that little company that wanted me to pay for 2G but we told them we had access to all the appropriate 2G IPR and our products didn't intersect their's....we challenged them, they wimpered a bit and went away with a reduced rate or nothing. Here they come again wanting a whole bunch up front....it's not in my fiscal year budget....I don't know when the operators are really going to be ready....ahhh, we'll tell them to go away for a while during which time we'll see if we can figure out what this is really going to cost us and where we can challenge them again.....and we certainly aren't going to re-visit 2G with them and have it included in any new deal. Those other companies that we signed up with for 3G didn't require much up front if we signed early....and they didn't go back in time for other standards that we'll still produce products for.

So what does all this mean? How do I think IDCC management should move forward with this 300 person company in the short term? What should we tell the world?

1. Focus on 3G and our inventions there
2. Use creative licensing practices
3. Create an air of partnership where needed
4. Keep up front fees low
5. Engage and build up resources to address needs
6. Meet budgets and schedules for projects


execute, execute, execute....keep innovating and build revenues