Replies to post #361507 on InterDigital Inc (IDCC)

[Data_Rox]

I was reminded yesterday that there was a perceived trend of the BoD to meet the 1st Wednesday of the last month in the quarter.....

I would expect that there may be.... a lot of match sticks on the agenda

light it up IDCC!

blta

[olddog967]

Rakitno: Agree with your comments regarding revenue recognition; however, according to IDCC's press release a definitive (not draft) agreement was reached. The release also stated that the transaction would be subject to any required regulatory approvals. Because of the size of the transaction, DOJ/FTC approval under the Hart-Scott-Rodino Act is required (see comment below). That approval could be the reason for the delay in announcing any guidance that would include the deal.

June 18, 2012
InterDigital Agrees to $375 Million Patent Transaction with Intel

Global Technology Leader to Acquire Approximately 1,700 Patents and Applications Related to 3G, LTE, 802.11 from InterDigital

KING OF PRUSSIA, Pa. & SANTA CLARA, Calif.--(BUSINESS WIRE)-- InterDigital, Inc. (NASDAQ: IDCC) and Intel Corporation (NASDAQ: INTC) today announced that certain of InterDigital's subsidiaries have signed a definitive agreement to sell to Intel roughly 1,700 patents and patent applications for $375 million in cash.

SNIP

The companies expect the transaction to be completed in third quarter 2012, subject to customary closing conditions and any required regulatory approvals.

_________________________

Is the sale or assignment of a patent reportable? The Hart-Scott Rodino Antitrust Improvements Act of 1976 (“HSR”) and related rules require that all acquisitions of voting securities or assets exceeding a threshold amount be reported to the Federal Trade Commission (“FTC”), as well as the Antitrust Division of the Department of Justice. The current threshold is $68.2 million.

Although the statute and rules are silent on the subject, the FTC staff has consistently taken the position that a sale or assignment of a patent is an asset sale subject to reporting if the dollar threshold is exceeded.

http://www.iplawalert.com/2012/08/articles/pharmaceuticals/ftc-proposes-rules-to-codify-reporting-of-exclusive-patent-right-transfers-in-the-pharmaceutical-industry/

[zombywolf]

Rakitno,

Actually, I was referring to IDCC general difficulty in getting paid for their patents, including current and past litigation. Not a specific example were any sold patents, which I dont think they
will have a problem with collecting eventually. While the company does not have to issue guidance per your post, they usually do. For the reasons outlined in my post, I gave a possible reason for the delay in guidance. Very possible the money has been paid and the paperwork is in process, holding up completion. I still believe that the Intel sale has something to do with the lack of guidance this qtr.