Replies to post #255145 on InterDigital Inc (IDCC)

[amrwonderful]

The logic of a fixed fee license is to get the licensee to get their moneys worth (and perhaps even more). So they sell the heck out of your technology and pay one fixed fee.....so what does that do for your technology's reputation in the marketplace? Plus, what does that do to the value of your existing and new technology when it comes time for renewel?

It is one way way to do business. There is risk on both sides. Plus it mitigates the fights over under-reporting arguments. The licensee does track the cost of the IP internally, even when they are paying a fixed fee. Plus there are ways for IDCC to track it also. All is considered when license renewel discussion begin.

[my3sons87]

gleeny, I guess all those fixed rate mortgages that worked for years for the banks are the reasons they are in trouble. It wouldn't have anything to do with the variable rate products that some genuis created to finance homes. Here you are sir take this 20 million dollar house on the variable rate annuity plan and pay us 10 a month for 24 months and then 6,000 a month for 4o years. But remember the first 240 paid over the first 24 months goes to the principle only. And the 6000 goes to the interest only when that kicks in and is applied to interest only which adjusts at an accelerating rate equat to the rate of geometric progress times PI, amplied by the quantum theorem principles times the desired outcome of Bullcrap.

If IDCC has to the choice between fixed payments at their defined rates for a defined period, I will take the fixed money. That avoids ups and downs, especially for a company that has been numbr one and can only lose market share to new entrants in the product market.