Replies to post #254721 on InterDigital Inc (IDCC)

[JeffreyHF]

Nicmar, I don't accept the premise that Nokia pays Qualcomm only $4/phone, as the 15 year 2G/3G/4G license they signed was complex, and included the payment of $2.5 bil cash, the transfer of substantial 2G/2.5G/3G/4G patents from Nokia, an agreement not to assert any Nokia patents against Qualcomm, and payment of ongoing royalties at approximately 2% of the wholesale value of each device sold, plus infrastructure royalties from NSN.(I believe the deal to be significantly greater than $4/device.)The flip answer to your question is that Nokia agreed to pay Qualcomm far more than they'll end up paying InterDigital, because their portfolio is more important, and more extensive.One need only look at the licenses both companies have signed, to reasonably infer that conclusion.Sophisticated corporations, relying upon the best engineering and legal advice they can buy, decide the terms of the licenses they are willing to accept.That's how the fair market value of one's portfolios is determined. Unfortunately for those who believe what they want to be true, rather than what has been circumstantially proven to be true, no one on this or any message board is competent to express an independent expert opinion on the commercial value of one or more patents.And when wild eyed assertions are made by laymen, as to such esoteric and expert matters, disappointment in the agreements actually signed is likely to result.You can be certain that IDCC cuts the best deals it can, with the portfolio it has to license.

[sonic22]

Mickey and Nicmar,

One thing you guys are all forgetting when trying to compare QCOM and IDCC is the fact that QCOM signed all original these agreements back in the late 90's. IDCC was still recovering from the MOT loss and trying to salvage their portfolio. Timing is everything and remember back than the markets were on the verge of the Internet, tech, NAZ 5K run. QCOM hit the perfect storm and got ERICY,NOK and the others to agree to their rate. So when resigning comes they still are going to get a damn good rate b/c they originally signed for a much higher rate. I don't argue that QCOM had more essential patents but when you guys keep trying to figure out why IDCC gets a much lower rate you have to go back and look at the original agreements made by QCOM 10 years ago which IDCC did not have. And as Loop and others have mentioned the standard bodies have changed and with hundreds of companies claiming essentnial patents the landscape has drastically changed from 10 years ago. I would love for IDCC to get a much higher rate from NOK but in this day the markets are different.