Replies to post #92609 on InterDigital Inc (IDCC)

[mschere]

Simple answer is yes..When utilized in a single mode TDD device..


But we non-lawyers, non-wireless engineers, still need to know:

Is NOK getting free use of TDD thru 2006?

[loophole73]

Ranger

I believe they have free WTDD for its life. In fact, they may get a very small cut from IDCC if it is successful licensing to others. IDCC received all of the patents and Nok paid the freight during the development. This not unusual in the industry. IDCC was able ramp up its engineering force when others were laying off. It is not a bad deal. Prior to the challenge, Nok was to pay for FDD which would be included in the greater share of the units produced. Also, Nok's free usage did not allow them to license technology to others.

MO
loop

[JimLur]

I still contend that Nokia only gets free use of what was co-developed during the IDCC/NOKIA project. Anything IDCC developed on their own or after the project IMO would have to be licensed by Nokia if they use it.

[magillagorilla]

Looks good to me...

Form 10-K/A

INTERDIGITAL COMMUNICATIONS CORP - IDCC
Filed: March 29, 2004 (period: December 31, 2003)
(Page 7 & 8)

TDD Technology Products

Our TDD technology development work began in 1999 when we entered into a strategic technology development agreement with Nokia involving the development and validation of fully standards compliant WTDD technology. Under the Nokia development agreement, we own all of the developed technology and have the ability to license the technology to other companies, as well as design, manufacture, sell and use products and components that utilize the resulting technology. Under this agreement, we delivered technology building blocks to Nokia for use in 3G wireless products. This development effort concluded in 2003 with final verification, testing and acceptance by Nokia.

Under the terms of the Nokia development agreement, Nokia agreed to fund the majority of the development effort based on a project budget of $40.0 million and to maintain an active role in the development plan. During the third quarter of 2001, the Company and Nokia amended the development agreement by refining the pace and scope of the program. Nokia agreed to forego its right to terminate the project for convenience and committed to a project maximum of approximately $58.0 million, up from the original estimate of approximately $40.0 million. Under the amendment, generally, Nokia was obligated to pay for the work based on negotiated commercial rates and to reimburse certain expenses, up to the project maximum. During 2002, Nokia’s payments reached the agreed maximum amount, less a $1.0 million payment to be made upon completion of the project. During 2003, we recorded revenue in the amount of $1.0 million from the Nokia development project, completing the project during the fourth quarter. Certain royalty-free licenses relating to TDD granted to Nokia under the contract continue after the development work has been completed.

In fourth quarter 2003, utilizing 5 MHz of unpaired spectrum owned by Swisscom Mobile we deployed a demonstration system, using our TDD technology, and demonstrated live, over-the-air, full screen streaming video calls at 2 Mbps while operating over a point-to-point fully functioning radio network controller, base station, and end-user terminal device. The demonstration also included live, over-the-air 384 kpbs video conference calls operating from terminal to terminal and voice calls with a Web browsing session.

We have experienced varying degrees of preliminary interest in our TDD technology among manufacturers and operators as they begin to evaluate their use of unpaired spectrum. We will continue to monitor market interest in TDD. With the development work on TDD for Nokia now complete, we expect to have modest resources devoted to the stabilization of the technology in 2004. Further, we have delayed any investment in field trial demonstration product until market demand warrants such investment.

We believe that a substantial amount of our TDD technology applies to other TDD technologies, such as TD-SCDMA. As part of our efforts to evaluate key technology developments, in 2002 we became a Council Member in the TD-SCDMA Forum, a body focused on the application of TD-SCDMA technology in wireless product. We are monitoring the evolution in TD-SCDMA development activities and its potential for deployment in China or elsewhere.