Replies to post #107963 on InterDigital Inc (IDCC)

[warbil]

Hardball, I agree with you wholeheartedly. IDCC may have settled prematurely with ERICY because of the impact of that agreement on Nokia and Samsung. With ERICY in financial straits, it was a difficult decision to press on knowing you would probably have to settle (post judgement) for a lower award because of ERICY's inability to pay. I don't think ERICY was all that indigent though. They were just great actors. ERICY's earnings and stock rebounded quite nicely after that settlement was announced.

Nokia is simply a bully and needs to be dealt with firmly. An arbitration win against Nokia will tell the industry that IDCC has the goods and that the threat of litigation will not deter them. It may cost a little more up front, but IDCC will be justly rewarded in the long run.

As for Howard, I don't think his termination had anything to do with failed negotiations with Nokia. I don't believe Nokia ever tried to negotiate in good faith with IDCC. I think Bill Merrit would have handled Nokia in the same manner as Howard. The litigation is significantly controlled by F&J and I think they are brilliant. I think Howard was originally brought in to the CEO position to help guide IDCC in its litigation efforts with ERICY and later with Nokia. I think IDCC believes its litigation strategies are now changing and Howard's abilities are not as crucial to IDCC's operations as before. Should Howard have been permitted to stay long enough to get credit for IDCC's dealings with Nokia? Maybe, but the Board needed to shake things up before the ASM to make it look like the company is changing for the future and that the Board is in control.

I perceive the changes as a positive step but the politics behind the scenes is somewhat deceitful. I don't mind giving Harry his due but I would still like to see someone with more industry recognition at the helm. What was the one thing that made Bill Merrit rise to the top. He got us involved in the standards committees and that gave us a level of recognition we never enjoyed before. Some OEMs are even beginning to look at IDCC as partners in 3G. OSO is right. ERICY's work with GD will eventually get us a 3G rate and it may happen before Lucent is settled.