Replies to post #42155 on InterDigital Inc (IDCC)

[mschere]

IMO:The trigger events for Nokia 2G and 3G are similar in all respects except that 3G requires a "DESIGNATED OEM" to license..and several sources outside of IDCC..have indicated to me that "DESIGNATED" is generic to a specific market leading position..The 1999 Nokia/IDCC contract was written at a time when the five or ten leading 2G OEM's were known, and could have been utilized as triggers by NAME, as was ERICSSON..The ITU 3G Standards were not established until many months after the 1999 contract..and have been dynamically updated since..TD-SCDMA as only one example..The Founding Fathers who created the 1999 3G clause and trigger were not psychics..they did not know at that point in time who will be the DESIGNATED HITTER for Big League Baseball Teams in 2006! IMO: NEC is a DESIGNATED OEM as they are the LEADING 3G handset Provider to date..and they also share that position in 3G Infrastructure..

From IDCC 10K



The Ericsson and Sony Ericsson license agreements apply to 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA infrastructure and terminal unit products. Accordingly, one or more additional agreements with a designated leading manufacturer will be necessary, in the absence of agreement between ITC and Nokia, to fully define the full scope of Nokia’s obligations under its patent license agreement."

[mschere]

After thought..Regarding IDCC, 3G and the amount owed to it for 3G handset sales and 3G Infrastructure..IMO:Using some $25 million or so paid by NEC to date for 3G..It is safe to assume that 98% of that amount is for 3G Infrastructure..While Siemens will pay IDCC for their share of those sales..I believe that it will be a modified amount based on their 1999 patent cut off..I would then assume that currently there is no more than $175-$200 Million or so of Commercial 3G Infrastructure royalty due IDCC,,to be shared among NTT, Lucent, Nokia, Ericsson, Fujitsui, Motorola,Samsung, LG, Huawei etc..I also assume that CDMA2000 Infrastructure is by far, currently the greater factor in 3G sales to date..IDCC has stated it will not license 3G piece-meal..and I believe that when IDCC's Issued 3G Patent portfolio is in place..they will have signed up all of the significant 3G players..