Replies to post #125686 on InterDigital Inc (IDCC)

[ams13sag]

It would be interesting to see how the $50 m was arrived at. The amounts subject to the unknown options granted under the contract to Kyo are in even lump sums spread over the 5 year term commencing in july 2004.

It would appear that if the sales of Kyo expand substantially, then IDCC does not benefit. No account is taken of price inflation in the contract. On the other hand if the unit sales of Kyo decline, then they appear to have the right to change the method of payment.

What is not clear is, if Kyo exercises one of its options to convert to a per unit basis, is the contract extended until the 50 m is exhausted, or are they entitled to a refund.

An explanation from fagan would help the share price and i imagine the analysts.

ams

[Dave Davis]

Perhaps Kyocera's option to convert to a royalty-bearing basis entails a prescribed expansion of the scope of the license to include other covered products and wireless standards.

My guess is that, the extensive negotiations that likely led up to this agreement probably included discussions about other possible products and technologies.

[habu]

KYO bought QCOM handset mfg and access to all of the QCOM patents, including CDMA2000. CDMA2000 is the one standard that ALL thought QCOM owned, so KYO should be able to mfg to CDMA2000 without a problem. Since IDCC has been trying to license for ALL standards, including CDMA2000,(which all thought the Q owned) then a single contract for a single standard that all thought KYO would never need would send a very big message to all. The reason for the single standard contract was to thwart those that would say KYO signed for all standards and IDCC threw CDMA2000 in because it is part of the convinience license, but KYO did not really need it. With this one contract, all ambiguity has been removed. Others can no longer say I will sign only after you take out CDMA2000 and lower to percent a bit.

this is of course, my opinion

[Desert dweller]

spencer, the only people that have stated IDCC wasn't going to do piecemeal licenses is the message boards. The company has always been willing to do piecemeal licenses as evidenced by the past 10 or so license agreements many of which have been piecemeal. Look at Ericy and Sony Ericy, they have not signed for cdma at all. Look at RIMM, their license is not all standards. There are others as well.

Many of IDCC's licenses are piecemeal although that is not the desired type of agreement, when that is all they can get, they take it. Unless I am wrong, I don't believe management has ever stated that was the only kind of agreements they were willing to sign. I know some who have been posting otherwise will jump on me and say I am wrong, but the evidence suggests otherwise. Great to see us up a buck. Let's keep it coming.