Replies to post #16800 on InterDigital Inc (IDCC)

[loophole73]

Fundamental Change

The only fundamental change revealed in the 10k involves 3g. We were once proud to have essential patents in all 5 modes. The only thing holding back the licenses for 3g was the Ericy matter. Ericy has been resolved and we had a new item revealed by management. Some Wireless Company, unidentified, is convinced enough that we do not have essential IPR in 3g that they have offered to indemnify any company that IDCC can beat in a court of law regarding infringement. This is a major fundamental change and departure from the steady story of essentiality in all modes of the IMT-2000. Other than that, there has been no fundamental changes. This revelation, insider sales and legitimate confusion as to whether or not an additional licensee is necessary to trigger Nok 2g rates have caused a sell off. Janet has cleared up the last point. The insider sales cannot be cleared up and we should be prepared to see some more Form 4's. The first point may not be discovered until IDCC takes some affirmative action to wipe out this new barrier to 3g licensing. IDCC should utilize the patent platform companies for the certification of essentiality of their patents for 3g. Once this is accomplished, the big wireless bully will have to retreat from its indemnification position.

We long term shareholders have to face the fact the Ericy result was not impressive enough for the other companies to shiver when IDCC says they believe they have essential patents. Management must be wise enough to recognize the need for a 3rd party certification of its claimed essential patent base. If they continue to deal in the old school tactics of presenting their beliefs and demanding that others license, then we are going to revisit the problems of 2g in our 3g efforts. The company recognized a mandate to settle Ericy and hopefully they will recognize the mandate to obtain 3rd party certification as soon as possible. The platform companies are up and running and you do not have to commit to rate caps to request the certification process.

MO
loop