Replies to post #41369 on InterDigital Inc (IDCC)

[Learning2vest]

zip, those issues are all distractions IMO. When IDCC is successful in winning the battle to be paid "fair market rates" for license of it's contributions in the W-CDMA standard those issues will all go away and/or we will not care about them.

The 3G revenue streams are where my interest is focused regarding IDCC. The major concern regarding those 3G revenue streams is the effort Nokia is leading to bust the IPR licensing cost issue for 3G. Over a year ago they declared war on 3G patent licensing. They unilaterally(and arrogantly IMO) set 5% as the collective total rate for W-CDMA, and started the battle by tossing in all of their W-CDMA IPR for free.

Nokia is a wireless manufacturer who makes their money charging a huge profit margin on the products it sells. IPR licensing is a cost they do not want to pay. They want higher profits for themselves, and no profits for the folks who invented and patented a lot of the technology they are using. They are in collusion with other manufacturers who want to do the same thing. Those guys are very big, and they are ganged up on our little InterDigital at this point.

THAT is the issue we need to be concerned about IMO. A bunch of very nasty bullys is threatening our IDCC investment right now. We know who they are. We know they do not want to pay. We know that they are attempting to change the rules on 3G IPR licensing after they got everything they needed.

I'm buckled in and ready for the battle with Nokia to escalate or to be settled at any time. What happens there is THE issue for IDCC investors IMO. Everything else is just a distraction compared to the importance of the results in Nokia's license agreements. I'm not sure what the Law affords in situations like this, but we are about to find out IMO. Howard was not blowing smoke when he said "We intend to take the negotiation and arbitration process(with Nokia) through to completion in whatever form that may take."

[mschere]

Question..Who are the leading vendors today of the FIVE Standards as defined in late 1999 by the ITU?.What is the total amount of sales for these devices built to those specifications today? Was not TD-SCDMA added as a specification at a later date? TIA


11/12/1999 8:14:00 AM - InterDigital Welcomes Adoption of ITU's IMT-2000 Standard

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Nov. 12, 1999--InterDigital Communications Corporation (ASE: IDC) welcomes the adoption of a comprehensive set of IMT-2000 radio interface specifications at the recent ITU meeting in Helsinki, Finland.

Speaking soon after the meeting, Howard Goldberg, Interim President of InterDigital, said, "This agreement represents a significant step for the development of IMT-2000 technology. For the first time, worldwide interoperability and interworking of mobile systems can potentially be achieved and that is good news for vendors, manufacturers and potential users."

InterDigital has actively participated in the 3G standards development process, contributing a significant number of proposed concepts and methodologies to the standards bodies in Europe and the United States. As a result a number of InterDigital's contributions have been adopted and are now part of the standard which will be implemented worldwide.

The IMT-2000 standard, also referred to as the third generation (3G) wireless standard, defines five sets of alternative specifications for the digital mobile radios which can be selected or aggregated by equipment manufacturers to produce standards-compliant third generation wireless products for their customers.

The five specifications under the standard include three forms of CDMA technology: Time Division Duplex (TDD) and Frequency Division Duplex (FDD) - forms of wideband CDMA, and FDD Multi-carrier CDMA (referred to as cdma-2000). The standard also includes two forms of TDMA technology: Digital Enhanced Cordless Telephone (DECT), and UWC-136, an evolved form of the U.S. TIA/EIA-136 digital cellular standard. Products built to one or more of these specifications will deliver a varying range of high bandwidth wireless services, including high speed Internet access, multimedia communications, video conferencing, and other forms of data transmission. Currently, 3G products are expected to have an initial roll-out in Japan in 2001, and then larger full scale commercial deployment approximately two years later in Europe.

"We are extremely well positioned as a developer of creative and valuable technology content for 3G wireless products. In this next generation, we foresee operators selecting and implementing wideband CDMA as the dominant 3G specification, evolving increasingly to multi-mode operation including TDD and GSM functionality to achieve optimum high bandwidth services and features. We believe that the European and Asian sponsored W-CDMA specifications will be especially strong with operators who have already implemented GSM networks or whose customers will require the worldwide roaming potential of GSM," said Howard Goldberg, Interim President.

[3GDollars]

Zip,

I believe 1 and 2 can not be discussed in the public because of confidentiality.

Yes on 3. Should give us more of they want to do: pursuing the I_CDMA technology, what to do with the IPR portfolio, the financial impact etc?

As far as number 4, it is a non-issue. They have discussed it the recent CC; just part of the licensing negitiation delaying technigue. Don't let the short here scare you on this issue.

I have asked about 5. IR told me that is is in arb and can't discuss much. I think it is better that way; every communication goes through the arb and their lawyer. They opened their mouth on what they expect Nok and Samsung to pay, and see what happen.

6 is kind of scary. Just what is it. If this turns out to be an issue, HG got to go, IMO.


1. opening up the details of 1999 Nok deal to the public
2. discussion of continuing 3G payments from Nec
3. more discussion on the Tantivy aquisition
4. more details on the indemnification issue
5. a discussion about the recent accusations by Nok and what, if anything, it intends to do about it
6. more details on the insurance issue