Replies to post #142981 on InterDigital Inc (IDCC)

[rmarchma]

Tookme re fixed royalty and per unit royalty

Ok now I understand that you were just trying to project the fixed portion of IDCC's recurring royalties, and not the total recurring royalties. Total recurring royalties would include the fixed royalty amounts plus the variable royalty amounts arising from per unit royalties on licensees' quarterly sales reports. However, I would caution you that it is too early to project LG's fixed recurring royalty, until guidance is provided regarding prior year allocations.

When you said "before any royalties from product sales", you were referring to the licensee's sale of products and not to IDCC's product sales. IDCC will also be earning revenues from product sales of chips by its chip partners and software products, such as protocol stacks and reference designs. IDCC classifies its product revenues separately from its recurring royalty revenues.