Replies to post #60682 on InterDigital Inc (IDCC)

[my3sons87]

Corp, you could be right as to some payments owing to a couple of individuals if the patents begin to payoff but that would be a minimal amount in my estimation. As I recall IDCC hired about 10 people and the others took the money and headed for the hills.

[mschere]

There is no longer a Tantivy "earn-out"

Acquiring the assets of Tantivy Communications further strengthens our existing CDMA2000 patent portfolio and competitive position in that marketplace, while broadening our offering to potential licensees and technology partners, " said Howard Goldberg, President and CEO of InterDigital. "It also effectively eliminates the earn-out obligation we had to Tantivy in connection with the exclusive license we entered into with them in 2002 regarding the CDMA2000-related patents With this transaction we are continuing the evolution of our patent licensing business and creating the opportunity for additional revenues. We also have added several key technologies that reach across multiple product platforms and wireless generations, thereby expanding our technology portfolio consistent with our strategic objectives.

[olddog967]

Corp-Buyer": The earnout in the final purchase agreement only covers 802.11 and Smart Antenna patents. In addition there appears to be a cap on the earnout.

The “Earn-Out” shall also include (y) four percent (4%) of any Consideration attributable to the sale or assignment of all or substantially all of the 802.11 Patents and (z) one percent (1%) of any Consideration attributable to the sale or assignment of all or substantially all of the Smart Antenna Patents, in each case that (A) the Buyer has not elected to assign the Earn-Out obligations described in paragraphs (i) through (iii) of this Section 2.02(b) in connection with such sale as described in Section 8.01 hereof and (B) such sale is consummated on or prior to December 31, 2009. Notwithstanding anything to the contrary contained in this Agreement, Buyer shall not be obligated to include the 802.11 or Smart Antenna Patents in any license granted by them.


“Consideration” means (a) gross cash received, plus (b) the fair market value of any securities received, plus (c) the value of any non-cash consideration received (as valued by Buyer, in its good faith discretion); provided, however, that the aggregate non-cash consideration (i) shall not exceed $250,000 received with respect to each Qualifying License during the period in which any Earn-Out is payable and (ii) shall not exceed $4,000,000 received from the sale(s) of all or substantially all of the 802.11 Patents or $4,000,000 received from the sale(s) of all or substantially all of the Smart Antenna Patents.