Replies to post #6594 on InterDigital Inc (IDCC)

[Desert dweller]

Jim, I hope you are right but I don't for one minute believe it. If we lose to Ericy we are out of it for 2g everywhere unless we take them or someone else to court overseas and win.

If we lose again the currently paying licensees IMHO will stop paying and Nokia and Samsung will not pay. Remember that Nokia can negotiate a rate on its own or pay the same rate that other unnamed, and currently unlicensed leading manufacturers are paying. The unnamed leading manufacturers are not yet paying and until we have an Ericy settlement or win at court the others will not pay and hence Nokia and Samsung wont pay for 2g.

Hopefully 3g will be a different matter but our bargaining position for 3g will be severely hindered with another 2g loss and our upside will be dramatically reduced.

[rmarchma]

Jimlur re Nokia and TDD you said:

..."Nokia only gets free usage of TDD patents that were jointly developed by IDCC and Nokia...Any TDD that IDCC developed on their own Nokia would have to license."

The 10K appears to have a different answer from the above. From page 8 of the 10K:

..."In addition, as part of our development project with Nokia,... Nokia is licensed on a perpetual, royalty-free basis under patents developed in the project. Nokia is also licensed on the same basis with respect to patents technically necessary to implement TDD technology; however, such license does not extend to non-TDD functionality."

I asked about this and was told that there was a general understanding with Nokia that they would receive our TDD IPR royalty-free. However, all the specifics of this general understanding are not finalized. Since we are still in negotiations with Nokia, there are no real firm answers yet.