Replies to post #96056 on InterDigital Inc (IDCC)

[mschere]

Why is it you refuse to comprehend that Panasonic signed a World wide 3G license bearing royalty for IDCC Patents issued around the World..I have posted my thoughts, and belief, several times ..and each time you responded with your same argument..Only one of us is correct..Even J.Point has stated to me several times that she does not know how Panasonic sales for dual mode WCDMA will be treated under their existing license..but you seem to have no doubt..If Pansonic pays after the JPO rules..we will never know which one of us has been correct..
If Panasonic sells their dual mode prior to a JPO resolution and actually pays for all prior Japan sales..I know you will afford me the same courtesy as I will afford you if they fail to pay IDCC...with an apology..I do know that my $8 Million number is on more solid factual ground than your number..(which should be $19.5 Million)


Matsushita Signs Worldwide 3G CDMA License With InterDigital Communications Corporation
April 03, 2001
InterDigital Communications Corporation announced that its subsidiary, InterDigital Technology Corporation (ITC), has entered into a worldwide royalty-bearing CDMA patent license with Matsushita Communications Industrial Co., Ltd., of Japan. The agreement covers wireless terminals, infrastructure products and test products compliant with CDMA-based standards sold by Matsushita under Panasonic and other brand names. Under the agreement, ITC will receive an initial multi-million dollar payment for royalties Matsushita will be obligated to pay when it sells products utilizing CDMA inventions under patents issued to InterDigital. After the initial royalty prepayment is exhausted through product sales, Matsushita will pay additional recurring royalties to InterDigital as it sells additional products using InterDigital's patents issued around the world.


mschere, why do you refuse to believe what the company has stated about the Panasonic license? The license and royalties will be triggered upon issuance of the necessary patents in Japan. It has nothing to do with the shipment of any specific phone. Panasonic has been selling phones that utilize our licensed technology for a while now and we still have not booked any revenue related to 3g BECAUSE the patents have not been issued yet. Please stop posting that when they ship this phone or that phone that it will trigger the royalties, it won't.

They are building up some royalties that will be recorded in a lump sum when the patents are approved, how much is anyone's guess, and when they will be reported is also anyone's guess. The royalties began accruing on 1/1/03 I believe. When the patents are approved there will be a lump sum recognition of the royalties from the 1/1/03 forward. I hope they have already utilized their entire prepayment of nearly $20 million.

[mschere]

OLD Panasonic 3G news..


How Bad At Motorola?
Arik Hesseldahl, Forbes.com, 07.11.01, 2:26 PM ET

NEW YORK - That Motorola is expecting to report a loss for its second quarter later today is nothing new. The question is, "How bad will it be?"

On April 11, Motorola (nyse: MOT - news - people) executives guessed the loss for the second quarter might be "a few cents higher" than the first quarter's pro forma loss of 9 cents per share and a net loss of 24 cents per share. With analysts estimating a consensus loss of 12 cents per share on $7.9 billion in revenue, according to First Call/Thomson Financial, it's hard to see any silver linings, especially for a company whose main business lines are in two industries mired in severe downturns: mobile telephones and semiconductors.

It's been axing jobs in an attempt to control costs. By the end of March, more than 20,000 people had lost jobs at Motorola. And its stock price has fallen 24% year to date. In anticipation of today's earnings report after the closing bell, the stock was down 3% to $14.99 in midafternoon trading.

Indeed, there may not be much hope for Motorola's semiconductors unit. There's been nothing but bad news all over the landscape of the chip industry. Motorola has been buffeted by a severe drought in demand for its chips. Major customers include Apple Computer (nasdaq: AAPL - news - people), Palm (nasdaq: PALM - news - people) and Handspring (nasdaq: HAND - news - people), all of which have been struggling with sales problems of their own. Hopes are brightening that sales will improve next year, but there's really nowhere to go but up.

"Motorola does have some good chip products on the market, and they have much better management in place now than they did before," says Will Strauss, president of market research firm Forward Concepts. "All that's needed now is for the market to turn around."

But in the wireless business, Motorola may have some good news to report indicating the tide may be turning, says analyst Ray Jodoin of Cahners In-State Group, Scottsdale, Ariz. So far, Jodoin says Motorola is the only wireless handset maker building reliable phones based on third generation, or 3G, technology. Two Japanese suppliers of 3G handsets, Matsushita (nyse: MC - news - people) and Sony (nyse: SNE - news - people), have had to recall defective handsets.

Moreover, Motorola has recently landed several big handset supply contracts with mobile service providers. The biggest one is a $700 million blockbuster with Hong Kong-based Hutchison Whampoa, good through 2003. In the past few months, it has also landed infrastructure deals with wireless providers in China worth more than $600 million.