I never expected Samsung to negotiate a 3G license with IDCC until they reviewed the results of the Binding Arbitration Award..They had hopes of riding on Nokia's 3G coatail,and stall a 3G license with IDCC until Nokia signed 3G with IDCC..They now have been TAXED some $170 Million for 2G, lost their MFL leverage, and are naked a 3G License ..and are vulnerable to summary Judgement to cease their U.S. 3G sales..Samsung and IDCC must have been in talks after the January evidentiary Hearing, since they submitted their 2g sales from 2002 through Year end 2005 in order to arrive at the specific Monetary award of $134 Million..IDCC has much leverage in bartering the 2006 Gross royalty, before Taxes to obtain a badly needed 3G license by Samsung..I do not think the Parties need more than 1 week to conclude a settlement..A 5 Year 3G license for $350 Million, payable some $70 Million per Year is not out of the realm of possibility.Samsung needs IDCC's TDD/TDSCDMA Patents to proceed with their Philips, Datang China Alliance, as well as their WCDMA/cdma2000/802XX Patents to appease Cingular and Sprint.
mschere, the fact that the panel was able to award a specific monetary award through 2005 means that Samsung must have been somewhat cooperative with the arbitration proceedings whereas Nokia fought it all the way. Nokia never provided the information in which to grant a monetary award but Samsung did. Does it mean anything? I don't know but the fact that they were more cooperative hopefully means that they won't fight it like Nokia did. The shear size of the award makes me a little concerned that they might although the Asians appear to behave a lot more ethical than the American and European manufacturers based on the number of paying Asian licensees.
With a total award of $180 million through 2006 including interest, it gives IDCC a lot of wiggle room in which to grant some concessions to Samsung while at the same time negotiating a very profitable 3g agreement. I doubt if anyone in their right mind would have ever thought $100 million was realistic, let alone $180 million. Our near and long term stock price is going up from here IMO. How high will be determined by the effectiveness of management in getting deals done. Let's hope they can now focus on 3g with all the top 5 and more.
Never a dull moment in IDCC land. Maybe there will now be a few 3g agreements concluded before year end since we have 2g resolved for the lions share of 2g phones sold. Keep your fingers crossed.
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