Replies to post #268169 on InterDigital Inc (IDCC)

[nicmar]

I don't know vg. To me it's pretty obvious slacker is invested in idcc. Has most of his ihub posts here. Moderates a board over on SI, qualcom I believe. I think he has excellent wireless knowledge and I'm happy he offers his opinions here. I like his plain common sense approach.

As far as some of idcc's present licensees, I would imagine many have taken note of nokia's first round itc win. Whether this will cause some to pause before renewing is anybodys opinion, but I imagine it would give them pause.

However, I agree with you on LG as I don't think idcc will have a problem renewing, mainly because LG doesn't come up until late 2010 and surely idcc will have nokia wrapped up by then. The smaller companies I would think wouldn't be much of a problem. I think the biggest thing may be a bit of a delay signing some of the unsigned such as frobinso suggested, motorola and sne. mo

[slacker711]

I am not sure what your goal is.

My only "goal" is to learn about the company and hopefully manage to contribute to others learning as well. That is the reason that I participate on any message board. There is no doubt that my style is aggressive but that is true on both sides of the fence. The only thing is that this board is so overwhelmingly bullish that my posts are going to almost always seem bearish in comparison.

why do you keep saying that LG might not renew?

I say this because I think that there is an overwhelming probability that they will wait until Nokia signs....even if that goes beyond the 2011 expiration of their current license. Look at it from their perspective, with every win Nokia potentially drives down the rate that LG will try and use as a benchmark for their license....and they arent risking or paying anything for this privilege. Nokia is doing all of the dirty work.

It happened to Qualcomm...they had two major handset vendors up for renewal within a period of five years. Negotiations with the 2nd vendor (likely Samsung) waited until the deal with Nokia was done. Within a few months, Qualcomm announced that the new deal with the 2nd vendor was likely going to take th same form as the Nokia deal....a large upfront fee and patents in exchange for a much lower royalty rate. The details of this new deal are supposed to be announced within the next few months.

Personally, I think that these deals arent particularly good for shareholders, but Nokia set the bar for new licenses and it isnt surprising that others are going to follow the same path.

I expect exactly the same thing with respect to Interdigital and Nokia. Motorola, SE, and LG all have a tremendous incentive to wait and see what happens with Nokia...and I fully expect all three to take advantage of that.

Slacker