Replies to post #357371 on InterDigital Inc (IDCC)

[postyle]

I think IDCC understands the issue now, but they can't go back and UN-ring the bell. The SA was a chance to fix the problem, but that failed. Now they have to try and fix it the hard way. This is what I wrote 3 months ago on the subject:

"...perhaps the biggest factor is related to the SA review and why IDCC decided to explore its options last year when they announced it. IDCC, as well as the rest of market, knows that their mismatched licensing agreements of the past have put them in a difficult position. Clearly Apple (+ its ODMs) has enjoyed a competitive advantage over its competitors because of the terms of its agreement with IDCC. This could be a big reason why others have been resistant to renew their agreements (such as LG).

It seems likely IDCC is working hard to correct this. The easy way would have been to be purchased by a bigger entity, obviously. But they also may be exploring partnerships and changes to their operating model. They have over two years to figure it out."

http://www.investorvillage.com/smbd.asp?mb=65&mn=61639&pt=msg&mid=11480192

[ziploc_1]

Loop: I appreciate your insightful post. The Apple agreement is at the center of Idcc's problems. Undertaking legal action at this time in order to have reasonable royalties paid by Apple fot LTE would do more than bring cash into the Idcc coffers. It would signal to other current and future licensees that the game will be played fairly from now on. I realize that Idcc is reluctant to sue present licensees but this is a special case and needs to be handled as such.

[squingeqbob]

Excellent post

[mickeybritt]

Loophole

I have said this from day one, and they never ever believed that a firm policy of if you sell this many this is your rate and as your grow in sales the rate per unit can decline, and its up to any licensee to pay the scale rate and get to the lowest rate by growing your business. Its the same rate for all based on sales.

Nope they wouldn't do it and they created a total distrust of every licensee as each and everyone felt they was getting screwed that IDCC let their competitors have a better deal.

JMO
Mickey