Replies to post #297487 on InterDigital Inc (IDCC)

[NukeJohn]

Let's Look at Bill's Comments on LTE...

From the Q1 Conference Call courtesy of Seeking Alpha

http://seekingalpha.com/article/201788-interdigital-inc-q1-2010-earnings-call-transcript?part=qanda

Tom Carpenter – Hilliard Lyons

Okay. And then as a follow-up, Qualcomm hasn't announced all the names of its licensors for Gbit. It sounds like it signed all the majors and then a bunch of the seconds here. I guess Qualcomm will set the rates for the market. As you look out into this year and next year, can you talk about your LTE effort, when you think you will have one or two of the major side, I know you have a 3G agreement coming up for renewal with LG at the end of this year.

Bill Merritt

Yes, I think that, you know, with respect to LG, that will be a topic of discussion, because any license that covers any reasonable period of time would cover LTE sales. So, I think, certainly with them, that will be a topic of discussion. I think with the other majors as well, I think it is going to be on the table, because an LTE is rolling in some volumes over the next few years and probably meaningful volumes because in any reasonable term of any license agreement. That said, there is still some other manufacturers in the market who would probably be latecomers to LTE, so it could be that you do have license agreements that get down with some folks that may not cover LTE, because they don't really have it on their roadmap. But I think we are definitely going to push LTE as a component of the licensing. I think our license position there is very strong, I think the patent position, both on its own, and when you think of that, the total IPR content that we will have on a device, I think supports a very high value program.

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I guess we'll just have to wait and see what Bill means by a "very high value program". I think it will mean variable rates on LTE, and I think those variable rates will be at least double (if not triple) the average 3G rates.

JMHO,

NJ

[JeffreyHF]

Thus, the issue of patent counting versus commercial value. Still waiting for InterDigital to declare its position on a fair 4G rate.3G has taught me the only metric that is important to licensing, is what revenues flow from a company's portfolio.Blanket assertions that LTE will be greater in rate/ease than 3G is simply hollow hope, until/unless proven otherwise. IDCC was supposed to be in its sweet spot with 3G. We now can see how overstated that was. Incidentally, I agree with all who feel IDCC stock is undervalued, and continue to hold my long position as a result.