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Data_Rox

01/10/03 7:31 AM

#1855 RE: wireless_wazoo #1853

OT: wireless_wazoo

Coopers in Philly by chance?

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sjaym

01/10/03 7:52 AM

#1860 RE: wireless_wazoo #1853

wireless: Thanx for one of the best and most informative posts in a long, long time. No hidden agendas, no put-downs, no "expertise" chest pounding........just good info. for all to keep in their referenc file(s).

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Danny Detail

01/10/03 7:52 AM

#1862 RE: wireless_wazoo #1853

Wireless .. Outstanding post! My coffee never tasted better LOL. (Actually it got cold while I reread your post several times, but no matter my whole body got warm and fuzzy in the process.)

Regards,

Danny
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sjaym

01/10/03 7:53 AM

#1863 RE: wireless_wazoo #1853

wireless: Thanx for one of the best and most informative posts in a long, long time. No hidden agendas, no put-downs, no "expertise" chest pounding........just good info. for all to keep in their referenc file(s).

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laranger

01/10/03 8:18 AM

#1866 RE: wireless_wazoo #1853

Wazoo. I hesitate to post this message for obvious reasons. But after reading Ericy's 3Q report, I contacted PWC by email in the Fall of 2000, about Ericy's failure to provide a provision for the IDCC litigation. I also passed on the sentiments of message board members that we were especially incensed that Ericy failed to make any mention of the IDCC litigation, even though it was then about 7 years old, and was obviously no nuisance suit.

The email was quite long and contained all the litigation history of Ericy, including Ericy's loss in Sweden, IDCC's victory in Germany, the NOK agreement, reaffirmation of patents, and the usual stuff. Frankly, I didn't think they'd give me the time of day, and didn't make a copy for myself.

Within two days, I received a call from an attorney at PWC's home office. He wanted to acknowledge receipt of the email, and told me they would look into the matter. When I asked a few questions, he became annoyed, and said he could say nothing further.

When the 4Q report came out, I read it carefully, and noticed the first reference to "patent litigation" exposure (without naming IDCC), and an increase in "provisions".

My email may have had nothing to do with Ericy/PWC's actions, but PWC will no longer accept emails about its clients on its website..

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slhcpa

01/10/03 8:39 AM

#1872 RE: wireless_wazoo #1853

Wireless excellent post #1853 - The ERICY legal teams must respond to the Auditors after consulting with ERICY management on the potential dollar impact of any pending loss contingencies. You have stated in words and references my thoughts and the reasons I have added to my position. I think the legal teams & auditors will not want to have potential ERICY shareholder class action lawsuits for not properly disclosing and "booking" this infringement.

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infinite_q

01/10/03 8:55 AM

#1875 RE: wireless_wazoo #1853

wireless_wazoo, excellent post. I didn't know you used to work for PWC. Excellent summary which all should read.

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jaykayjones

01/10/03 9:05 AM

#1877 RE: wireless_wazoo #1853

wwazoo: all those facts were in our faces! It took your talents and insights to assemble them into a coherent canvas. Well done, Wireless Michaelangelo! JK

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warbil

01/10/03 9:26 AM

#1883 RE: wireless_wazoo #1853

wireless_wazoo is right on the money...

Ultimately, why is PWC so concerned about the disclosures of ERICY in their SEC reports and reports to shareholders. As the auditor for ERICY, PWC is like an insurance policy to creditors and shareholders of ERICY. If ERICY's financial statements are found to be materially misleading and PWC had access to the information that caused the financials of ERICY to be misleading, then PWC would likely be sued for damages suffered by creditors and shareholders. PWC must cover their respective arses to keep this from happening.

PWC does have access to all of the litigation information and representations made by ERICY's attorneys. If PWC is limited in any way from getting this information, they have no choice but to sever their relationship with ERICY or face possible lawsuits if anything goes awry. The poptential damages to PWC in this case could amount to hundreds of millions of dollars.

As I see it, the only way IDCC can lose this case is by a fluke jury decision and that is still entirely possible. The difference between the ERICY and Motorola cases is that a reputable lawfirm is now representing the interest of IDCC. In the Motorola case, most of the legal work was done by in-house counsel. IDCC was so outmaneuvered in that case it isn't even funny. Ask our beloved leader Howard Goldberg what his role was in the Motorola case. I'm also betting on a settlement between the parties before the jury verdict is read.

Thanks wireless for giving us the insight about PWC. You are 100% right on the money.

Bill

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loophole73

01/10/03 9:37 AM

#1889 RE: wireless_wazoo #1853

Wireless

Great post and geat content. It should also be pointed out that AMS, the target of many arrows on this board, notified the auditors of the litigation. The next filing after his notification contained the area that you have identified. Regardless of the stimulus, Ericy changed its tune on the basis of the auditor's probe. Thank you for your great efforts on this board.

loop

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chartex

01/10/03 10:11 AM

#1901 RE: wireless_wazoo #1853

wireless_wazoo ...many thanks for the excellent post reviewing
ERICY. This should be most helpful in reassuring those IDCC
S/H who might be getting cold feet going inot the ERICY trial.

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parq

01/10/03 11:26 AM

#1926 RE: wireless_wazoo #1853

wireless, good reading

sounds like Ericd finally got a disease from engaging in too much casual sex.

"...In addition, third parties may attempt to appropriate our confidential information and proprietary technologies and processes used in our business, which we may be unable to prevent..."

that breaks my heart

follows is interesting information regarding the Japanese Patent Office. article on the left hand side:

"Patents Searching Japanese Patent Numbers."


http://www.patentsonline.com.au/news/vol1no4/news14.html

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JimLur

01/10/03 6:55 PM

#2047 RE: wireless_wazoo #1853

Great Post

Jim Lurgio





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rmarchma

01/11/03 6:51 AM

#2101 RE: wireless_wazoo #1853

Wireless re Ericy liability provision for patent disputes:

Great to see you posting again. Outstanding job with the Ericy liability provision, which incorporates patent disputes. At one point, I had some of our previous discussions on this particular liability provision in the Ericy section of my compelling reason document. In subsequent revisions to the compelling reasons document, I took out all posts from individuals to make the document more "objective". However, I want to put this latest post from you back into the document, with your permission. I can give you credit by name if you prefer, or just a general reference to you being a CPA owner of IDCC. My proposed incorporation of your post into the Ericy section of the document, with the material immediately before and after, as follows:

Ericy just acknowledged the possible magnitude of the US lawsuits with Harris and InterDigital on page 15 of Ericy’s new rights offering prospectus in September as follows:

”Like other companies operating in the telecommunications industry, because our products comprise complex technology, we experience litigation regarding patent and other intellectual property rights. Third parties have asserted, and in the future may assert, claims against us alleging that we infringe their intellectual property rights. If we do not succeed in any such litigation, we could be required to expend significant resources to pay damages, develop non-infringing products/technology or to obtain licenses to the products/technology which is the subject of such litigation. However, we cannot be certain that any such licenses, if available at all, will be available to us on commercially reasonable terms. Also, defending these claims may be expensive and divert the efforts of our management and technical personnel. In particular, we are currently party to two unrelated lawsuits where plaintiffs allege that we have infringed one or more of their U.S. patents through our sales of certain GSM and TDMA products in the United States. While we are confident that we will prevail in each of these two lawsuits, there can be no assurances thereof. If we do not prevail, we may have to expend significant resources to pay damages and we could be enjoined in the United States from selling any products found to infringe unless we either modify those products or obtain licenses to the patents found to be valid and infringed.”

Also contained within the Ericy prospectus was disclosed a recorded liability provision of over $1 billion dollars that included "patent disputes" as one of three items. Details about this Ericy liability provision provided by a CPA who owns IDCC stock as follows:

http://www.investorshub.com/boards/read_msg.asp?message_id=668220

On Oct. 29, ’02 Ericy lost to Harris in a somewhat similar patent infringement case, although for fewer patents, for a significantly lesser time period, and for a lot less money than what is involved in the IDCC/Ericy case. The IDCC/Ericy lawsuit is being tried in the same Dallas courtroom, with some of the same attorneys, and now with the same presiding federal judge as the Harris/Ericy litigation. From a Harris press release announcing the court verdict:


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JimLur

01/11/03 12:00 PM

#2143 RE: wireless_wazoo #1853

Excellent post and revue of the ERICY case.

Jim Lurgio