L2V, one thought about Nokia settlement terms...
In Nokia's position, if I (as Nokia) were to contract with Interdigital, I would look for some type of capitation in the contract. Simply, Nokia will pay royalties up to a certain number of units and then would be free or reduced for the remaining units in that calendar year. Other companies could have the same clause put into their contracts, but Nokia's number would be high enough that no other company would ever likely achieve the total units in a calendar year to get the price break. This theory has been put forward before, and it has also been theorized that this may have been a stumbling block for Howard.
Frankly, if a settlement is going to occur before the award comes down from Arbitration, IMO it will occur because an agreement in theory had existed previously and could be easily revisited. Merritt is the guy to get that job done if I understand his background correctly.
Regardless, though a settlement would be nice, IMO I do expect that the arbitration decision will go Interdigital's way.
And for the record, if Interdigital does win, meaning that Nokia is required to "honor" their contract and pay royalties for 2G, I expect a share price for IDCC to hit at least $30/share... (though I'm actually looking for $50+/share which could occur down the road as 3G gets resolved).
I've seen some lower valuations posted recently, and I have to wonder if they're discussing the same stock. I don't understand why any investor would be long this type of company if they were only looking for a 10-20% gain.
Yep, seems silly to me.
Good luck to the longs.
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