Replies to post #184126 on InterDigital Inc (IDCC)

[Learning2vest]

No question about that My3. Let's review the facts.

We know that IDCC partnered with a subsidary of IFX to develop a level 1,2,3 UMTS protocol stack which IFX is currently using and selling, and we also know that same partnership includes provisions for IDCC to have access to IFX's leading edge 3G ASIC production operations.

Now consider this - The baseband modem ASICs that IDCC has under development are basically just processors specifically designed to efficiently run that very same UMTS protocol software stack. There are some other pieces and parts in that modem component of course, but we already saw IDCC step up and license a 2G protocol stack set from IFX a few months ago. Merritt also told us last year they were developing the HSDPA and HSUPA versions of that protocol stack, so I'd say IDCC is "good to go" on the IPR for some hot new UMTS modem ASIC components.

Key point is that if there are, as an example let's say 10,000 patents in a complete UMTS "system", there are probably way less than 1,000 patents in just the baseband modem components that IDCC plans to sell. IDCC only needs to have the IPR to support that very specific "air interface" component, not the entire subcriber device that they get installed in by an OEM.

And we know that is where IDCC's engineering development focus has always been, right there in the "air interface" function. As a result, IDCC has a gazillion patents covering just about every possible aspect of the UMTS "air interface" function. No question in my mind that IDCC can kick hiney matching up IPR with anybody and everybody in that very specific and limited baseband modem venue. It's who they are and what they do! If there was a big sign over IDCC's KOP HQ it would read "Air Interface R Us"! LOL!

IMO that is what makes Merritt's product strategy so brilliant. I'm thinking that he is going to put the strength of IDCC's patent portfolio into a very specific set of products and use them like a sharp stick to force Nokia's shyster OEM cabal to come to terms.