From IDCC 10K...Related to licensing...
Numerous wireless communications manufacturers have acknowledged that they require a license from us to develop, manufacture, and sell 2G, 2.5G and 3G products.
IMT-2000 defined five sets of alternative specifications, which can be selected or aggregated by equipment manufacturers to produce standards-compliant 3G wireless products for their customers. The five specifications under the standard include the following forms of CDMA technology: CDMA FDD, CDMA TDD, and Multichannel CDMA (CDMA2000). There are two forms of CDMA TDD in the specifications: WTDD and NTDD (also referred to as TD-SCDMA). WTDD and FDD combined are commonly referred to as WCDMA. The 3G standard also includes two forms of TDMA technology: UWC-136 and a form of DECT.
We intend to create enterprise value by monetizing our investment in technology and product development through technology transfers to customers, the delivery of software and hardware products, and the licensing of our intellectual property worldwide.
Our substantial portfolio of patented TDMA and CDMA inventions and the capability to license these patents worldwide are valuable assets. Licensed access to these inventions, and the technological know-how they represent, has proven valuable to producers of wireless devices and components around the world.
Based on our history of invention and our extensive participation in the standards bodies, together with extensive use of technology innovation across different standards, we believe that our patent portfolio, including patents applied for, is applicable to all of the air interface protocols described in the IMT-2000 standard. We have indicated to the appropriate standards bodies that we hold patents and patent applications that are essential for implementation of the present 3G standards specifications in products, and have, in conjunction with such indication, declared that our patented inventions will be available for license under the general principles for each standards body.
We are making significant investments in WCDMA technology development and expect to generate revenues through a combination of intellectual property licensing and product sales. Our current development programs focus on creating enabling inventions as well as hardware and software products for the WCDMA specifications of the 3G standard.
Based on our FDD and TDD technology Platforms and development activities, we intend to develop 3G products for sale to telecommunications equipment manufacturers either directly, through our partners, or through other third parties. Additionally, from these efforts we have identified potential new business opportunities, such as direct wireless applications in government programs. The products are expected to include ASICs, reference designs, software and combined RF/Baseband boards. Our business plan is to develop the products either alone or through partnering relationships with appropriate companies. We also seek to license the technology to third parties on a royalty-bearing basis,
As part of our comprehensive intellectual property program, we have been intensively involved in licensing our patents worldwide, with the ultimate objective of realizing licensing revenues from use by third parties of inventions covered by ITC’s and/or IPR Holdings’ patent portfolios. Based on standards as adopted, we believe that ITC and IPR Holdings have a number of patents or patents applied for that are essential to the implementation of all the technology specifications incorporated in the current 2G and 3G standards. Those standards include, but are not limited to, TIA/EIA-54/136, narrowband CDMA (TIA/EIA-95 and similar standards), WCDMA (both FDD and TDD), CDMA2000, GSM, PDC, PHS and DECT. We also expect that many of our patents or patents that issue from existing applications will be commercially important in the actual 2G and 3G product implementations. Accordingly, ITC and IPR Holdings believe that licenses for a number of their patents are required for third parties to manufacture and sell digital cellular products in compliance with TDMA and CDMA-based standards currently in use worldwide. Currently, numerous manufacturers supply digital cellular equipment conforming to such standards. ITC and IPR also believe that their patents have application beyond the digital cellular environment, including wireless LAN.
Also in more recent years, we have been developing intellectual property relating to 3G technologies, which has generated a significant number of 3G patents and is continuing to lead to the filing of additional 3G patent applications. Consequently, ITC’s licensing efforts have expanded to cover its 3G patent rights. We anticipate that we will be able to generate, over time, significant revenue from the licensing of patents for 3G products.
We are in active discussions with companies on a worldwide basis regarding the licensing of our 2G, 2.5G and 3G-related patents.
We are in active discussions with companies on a worldwide basis regarding the licensing of our 2G, 2.5G and 3G-related patents.
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