Replies to post #5656 on InterDigital Inc (IDCC)

[Data_Rox]

Ronny - AMAZING post !

I think that is the first time I've seen all those licensees assembled in one place with associated numbers behind them.

THANK YOU !

R

BTW - you have mail

[GE_Jim]

Rmarchma, nice to see you still have the "A" game in hand. Good job.eom

[cls]

Ronnie, wow that was super info, thanks for you time spent...just wondering after reading through your post, are we seeing mfg's holding up on prepayment, as many issued prepayment several years ago and did not use them. I know the ericy debate is part of their excuse or all. Could we be seeing a pattern of holding off until they are sure they will use the technology. I would.If so then the ericy debate may not bother some?

Again thanks for all you do
cls

[mschere]

RMARCHMA:Great analysis of IDCC licensees..As with all your thorough work for this board..IMO..You have acounted for 99% of IDCC's income stream for the past 10 years!

Introduction / WCDMA Technology / Products / Licensing / Contributing to Industry Standards / Technology Patents



Since our inception, InterDigital has employed an aggressive program of developing and protecting our intellectual property, with the ultimate objective of realizing licensing revenues from use by third parties of inventions covered by our patent portfolio. Since 1992, we have generated over $400 million in patent royalty and technology licensing payments.

InterDigital believes that, in many instances, licenses for certain of our patents are required for third parties to manufacture and sell digital cellular products in compliance with TDMA and CDMA-based standards currently in use worldwide. Accordingly, we offer non-exclusive, royalty bearing patent licenses to telecommunications manufacturers worldwide that manufacture, use or sell, equipment utilizing our extensive portfolio of essential or commercially important intellectual property, including patents relating specifically to digital wireless radiotelephony technology, Time Division Multiple Access (TDMA) and Code Division Multiple Access (CDMA).



mschere

[0nceinalifetime]

Your msg contains many inaccuracies and mischaracterizations but I don't have the time to address them all at this time. But you should reconsider this:

Since Q no longer manufactures infrastructure or handsets, it is very doubtful that they will pay any more royalty or license fees to IDCC. The only product that Q currently manufacturers is chips. Since IDCC follows standard industry practice by not licensing at the chip level, I don’t think Q will need to update their license with IDCC. Q would only need to update with IDCC, if they began making handsets and infrastructure again IMO.

I take exception to your claim that the current industry practice is to not charge royalties at the chip level. Currently, QCOM recieves an IPR royalty payment at the chip level for every CDMA ASIC that is not marketed by QCOM. That flies in the face of your claim. In otherwords, If the handset has a competitors ASIC inside then Qualcomm collects a royalty on the ASIC AND on the handset.

Because IDCC has announced plans to market their own ASIC (in conjuction with a partner), one would assume they would (like Qualcomm) want to charge other ASIC makers at the chip level if IDCC's IPR was required. Otherwise, the same royalty would be due on a phone with an IDCC ASIC inside as on a phone with a competitors ASIC. In this case, companies who competed with IDCC for ASIC marketshare would be getting free use of IDCC's IPR at the ASIC level.

It is a falacy that it is industry standard practice for the IPR holders to not license or collect royalties at the ASIC level. This is a rumor that was started to hide the fact that IDCC doesn't have significant essential IPR at the ASIC level and the big chip makers won't play the blackmail/nuisance IPR game.

Once