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mschere

02/19/05 6:53 PM

#95750 RE: Corp_Buyer #95743

QUESTION..What are the Tax consequences for IDCC receiving several hundred Millions of Restricted Nokia stock..currently trading at some 16 X Earnings and paying 2.4% tax free dividends and passed on to its current shareholders? Your reply will determine for me whether or not it is a win/win solution as a 2002-2004 2G settlement..

or other arrangements" - I find this language by Nok not unusual, but it certainly does get one thinking about the possible purchase of, or investment into, IDCC by Nok using their stock.

The idea of a Nok investment in, or acquisition of, IDCC also seems to relate to the recent Powerpoint presentation from Nok about how non-manufacturing IPR houses (like IDCC) can't cross license, so they will see their contributions to the official standards avoided by the manufacturers who will work to push a different non-standard technology in the marketplace.

The point from Nok to IDCC: If you don't align with a manufacturer, your IPR contributions will be shunned, since they can't be traded among the lucky few companies that already dominate the industry.

This thinking may also explain why the Japanese embrace IDCC and the paper standards, since this approach helps them compete with the European bullies who want to dominate the industry to the exclusion of other competitors.

This is a very interesting dynamic indeed that did not occur to me until now i.e. the new competitors (Asian) that embrace the stadards (and IDCC) versus the entrenched palyers who are threatening to use their market power to shun the standards (and by implication IDCC).

Perhaps we will come out of this Nok combat with some (or a lot) of Nok stock. If there is one thing that might induce me to buy another Nok phone, it is if I had suddenly had a lot of Nok stock - LOL.

MO,
Corp_Buyer