NukeJohn,
In your post you say the following:
3. The world has already acknowledged that IDCC has essential IP that covers the LTE/4G standard....their IP was built into the standards. Now the question is "how much is a reasonable FRAND rate?" I can't fathom IDCC getting less than 1.5% on LTE (and it may be as much as 1.75% - 2%).
From the Q3 transcript I heard this:
Michael Cohen - MDC Financial Research
Okay and those sorts of reports have, you up there with Qualcomm and Qualcomm asks 3.25% requested rate on LTE? Do you think that your royalty rights might be and were in that range?
Scott McQuilkin
Qualcomm gets to wherever it gets to for a variety of reasons, a lot of it historical. Where we end up at the end of the day is, and I talked about this before, we have a certain level of royalties that we get today on 3G products. Given the very strong position we have on LTE and again that it’s a layer, we believe we can move those rates up. I would suggest it’s not a dramatic move, it will be more that wedged up. But even a small move in rates in this market can be very, very significant in terms of revenue and profits.
It sounds to me that Interdigital is looking at LTE as an add on to 3g. If I understand him correctly, If you have a 3g license, there is a little nudge upward (this is what I heard him say, not wedged) for LTE. So it seems like the rates you are talking about 1.5% to 2% for LTE are kind of high. Are you talking as an add on amount or 3g, LTE combined?
Thank you for all of the information you provide to the board.
Zdog
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