Replies to post #185156 on InterDigital Inc (IDCC)

[vg_future]

The Count, I've been in here for sometime now (more than 12 years if I remember right). Anyway, the "dragging on forever..." comment is purely in this context...i.e., Samsung and ITC case will not drag forever and this issue will not drag forever either (of course IMHO). We could still be fighting some other fight with Samsung or any other top 5s. History will contradict if I say it any other way. Let's see whats in store for us. An ITC win will definitely put the chill down many spines and we will definitely see lot of licensing activity. I consider ITC as the one with more teeth as opposed to ICC (which needs a second confirmation due to lack of implied non-binding nature is spite of being binding).

-vg_future

[mschere]

IMO:You are on target..IDCC had a CONTRACT obligation to notify NEC who has an existing MFL PLA that did not have a termination date except when the last IDCC 3G Patent expires of any PENDING NEW Licensee Contract ..NEC is paying IDCC at the rate of some $30 Million annually for its WCDMA Infrastructure sales PLUS the same $2 per 3G handset that every current or future 3G licensee is to pay .. I believe IDCC is planning to offer AMNESTY for past and future cdma2000 Infrastructure sales to a tier 1 OEM..and thus it triggered the new NEC terms of a "gradual reduction" of only their Jan. 2007 & future 3G Infrastructure sales..
IMO:It could only be either Samsung or Motorola.. and their new License will be dated as of January 1, 2007

InterDigital, Inc.'s subsidiary, InterDigital Technology Corporation, has entered into an Amendment to Patent License Agreement ("Amendment"), effective as of January 1, 2007 with NEC Corporation ("NEC"). The Amendment modifies the parties' Narrowband CDMA and Third Generation Patent License Agreement dated January 15, 2002 ("Agreement"). Under the terms of the Amendment, in exchange for a gradual reduction in royalty rates applicable to sales of covered products under the Agreement, the parties have agreed to eliminate NEC's most favored licensee rights applicable to such products. Under the Amendment, NEC and InterDigital Technology Corporation also agreed that the Agreement will expire on December 31, 2015, and in advance of such expiration date, to negotiate the royalty rates applicable to Narrowband CDMA and Third Generation products for 2016 and thereafter.

InterDigital Technology Corporation and NEC are also parties to a Patent License Agreement dated May 8, 1995 covering TDMA-based 2G products which remains in place.



I hope this modification is clearing the way for a deal with one of the majors that will hopefully break this year and a half logjam on the licensing front and give us the watershed event that we thought we had with ERICY and then with LG. But to say this "dragging on for years is out of the question" is a bit optimistic based on the history and my perception of the manufacturers business style.