Replies to post #208460 on InterDigital Inc (IDCC)

[rmarchma]

Infinite re Nokia's direction with the FRAND issue you said:

...."jhaw/loop, I think the logic here is that the ITC cannot issue an injunction banning import of infringing products because IDCC has submitted a written statement saying it will offer FRAND terms to manufacturers whose products are built to the 3G standards. Apparently, the expert for NOK is saying that in the event the IPR holder and a potential licensee cannot agree on the price for the license then they must go to court and let the courts decide a FRAND rate."

I think that Nokia might be trying to make its dispute with IDCC more of a FRAND issue rather than an infringement issue. This is a direction with the ITC that I thought Nokia might try to pursue when I asked the following question of Whizzer in a previous post:

5) In your opinion, is the following scenerio even plausible?:

Could Nokia/Samsung possibly argue against an immediate injunction by the ITC due to the limited number of infringed IDCC essential patents compared to the total number of essential patents required to make a 3G compliant handset? Therefore they know they need to license with IDCC, but only at "FRAND" royalty rate. They would then argue that since they can't agree with IDCC on a "FRAND" rate, then it needs to be determined by the COURTS. Thus the possible injunction might be delayed until after a court ruling on what would be a fair royalty rate.

In another post, I asked the following:

Will the Tier 1 companies license with IDCC for 3G in 2008? Will a favorable ITC ruling necessarily result in licenses with Nokia/Samsung, or do we still have to wait for a court resolution of the FRAND royalty issue, which I think has caused the licensing impasse all along. If the courts get involved, then I don't foresee a Tier 1 license until 2009.


The above question and other questions that I asked Whizzer about the ITC case in the following linked post:

http://investorshub.advfn.com/boards/read_msg.asp?message_id=26086689

http://investorshub.advfn.com/boards/read_msg.asp?message_id=26104216


Whizzer's thoughtful replies to my questions in the following linked posts:

http://investorshub.advfn.com/boards/read_msg.asp?message_id=26093030

http://investorshub.advfn.com/boards/read_msg.asp?message_id=26109900

[Monterey2000]

Then apparently NOK is not taking its own expert's advice. IMO, NOK has yet to file a FRAND action in any court. NOK has initiated actions regarding invalidity, non-essentiality, etc. but not FRAND. FRAND may have come up in these prior and on-going actions but have never been the basis of the initial filing.

If NOK chooses to initiate a FRAND action now, this is where the ITC steps in. The ITC levels the contract price negotation playing field. The ITC provides injuctive relief to IDCC that prevents NOK ability to enrich itself on IDCC IPR in the US until that FRAND action is resolved in the courts.