Replies to post #98281 on InterDigital Inc (IDCC)

[nieves]

=DJ Research In Motion/NTP Hold Voluntary Settlement Talks
By Stuart Weinberg Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--Research In Motion Ltd. (RIMM) and NTP Inc. held a voluntary settlement conference late last week in front of a Virgina court judge, according to two analyst notes published Monday.
It was the first voluntary settlement conference held by the two sides, National Bank Financial analyst Deepak Chopra said in a research note Monday.
"While we don't know how far the settlement talks went and whether they even came close on agreement, we do view it positively as a potential settlement would most likely act as a positive catalyst for RIM's shares," Chopra said.
It wasn't immediately clear if Chopra owns Research In Motion shares. National Bank Financial hasn't acted as financial adviser, fiscal agent or underwriter for the company within the past 12 months.
The conference took place March 11 in front of U.S. magistrate judge Dennis Dohnal at the U.S. District Court Eastern District of Virginia, according to a research note by TD Newcrest analyst Andrew Lee. "Proceedings began at 9:30 a.m. and lasted all day, to our understanding," Lee wrote. "Clearly any material development from the conference would be press-released by RIM."
In an e-mail message, Research In Motion confirmed that the settlement conference took place, but declined further comment. Officials from NTP weren't immediately available for comment.
The closely-watched patent dispute began in late 2001 when NTP, a privately-held Virginia patent concern, sued Research In Motion, maker of the BlackBerry wireless handheld device, for infringement of eight NTP patents. The court ruled that Research In Motion had infringed on five of the patents and awarded NTP $53.7 million in damages plus an 8.55% royalty on BlackBerry sales and services in the U.S. It also granted, but immediately stayed, an injunction on sales and services of BlackBerry in the U.S. pending an appeal.
Waterloo, Ont.-based Research In Motion has set aside more than $150 million for the potential royalty payments. It also continues to face the threat of an injunction as the U.S. Court of Appeals for the Federal Circuit upheld the District Court's finding of infringement on 11 of the 16 claims at issue in the disputed NTP patents.
Despite its precarious position, Research In Motion has never shown any inclination - at least publicly - to settle the case. It's not clear what, if anything, has changed.
Keith McLean, portfolio manager of several mutual funds at Investors Group that hold Research In Motion shares, said Research In Motion may have decided that the dispute has gone on long enough. NTP may also be growing weary and be willing to settle at a reasonable royalty rate, he said. By reasonable, McLean said he meant something in the low single-digits.
Research In Motion may also recognize that a settlement could help it move forward with its licensing strategy, known as BlackBerry Connect, McLean added. The company has licensed its technology to a number of device makers, including Nokia Corp. (NOK) and Motorola Inc. (MOT), but licensees are reluctant to introduce BlackBerry-enabled devices in the U.S. until the dispute is settled, he said.
In his research note, TD Newcrest's Lee said his "best guess" is that Research In Motion will settle with NTP and that a payment in the $500 million range isn't unreasonable. "RIM has accrued roughly $155 million for past infringement at the 8.55% royalty rate, RIM will likely accrue $25.5 million in the Feb/05 quarter, NTP's 5 patents expire in 2012 and RIM has $1.64 billion in cash," he said.
It wasn't immediately clear if Lee owns Research In Motion shares or if his firm has an investment-banking relationship with the company.
On Nasdaq Monday, Research In Motion is up $1.60, or 2.7%, to $62.23 on about 2.1 million shares.
Company Web Site: http://www.rim.net -Stuart Weinberg, Dow Jones Newswires; 416-306-2026; [e-mail]
(END) Dow Jones Newswires
03-14-05 1257ET

[magillagorilla]

Thanks laranger, in the original PR, it mentions the "best guess" by TD Newcrest's analyst Andrew Lee is that RIMM would settle with NTP and that a payment in the $500 million range isn’t unreasonable.

It must be nice……184.83 million shares outstanding and up $5, on the “possible settlement”!