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Data_Rox

03/08/14 11:52 AM

#382871 RE: dndodd #382858

it was in reference to your response that we wouldn't have an answer to expected monies from arbitration..

I said:
As we saw with Pegatron's arbitration….if there was monies expected from the arbitration….they would have disclosed it.

you said:
With Interdigitals conservative style we will only have the definitive answer to this after the confirmation in April.


Rich Brezski - Chief Financial Officer said (in reference to Pegatron):

Thank you, Patrick. There is been a lot of activities since we last spoke. Some of that activity including the cost of litigation and arbitrations and the contributions of revenue and cash flow from new and renewed license agreements is reflected in our first quarter financial results. On the other hand subsequent to quarter end we received a $30 million Arbitration Award from one of our patent licensees that is not reflected in our financial results and will not be until collectibility is reasonably assured.

For accounting purposes we generally expect that to occur either one we receive the cash or our licensee expresses an intention to comply with the award. To be clear the recent Arbitration Award relates to a patent license agreement.

I said
so I'll just go with what OD said

I would love to see it, just not expecting it and certainly don't want to set up for disappointment


OD said
pierre: As far as we know there was no monetary award. The dispute covered an interpretation of what specific products were covered by IDCC's license with Apple (see below from 10-K). Although there apparently was no direct monetary award, the determination of which apple products were not covered by Apple's lump sum license, allowed IDCC to obtain payment for those products under the per unit license with Pegatron, an Apple ODM.


Arbitration with Apple Inc. Regarding Scope of 2007 Patent License Agreement
On October 10, 2013, a three-member tribunal constituted by the American Arbitration Association’s International Centre for Dispute Resolution issued an arbitration award in a proceeding initiated by our wholly owned subsidiaries InterDigital Technology Corporation and IPR Licensing, Inc. to resolve a dispute surrounding our 2007 patent license agreement with Apple Inc. (the "Apple PLA”). The arbitration award declared that Apple iPads, and any Apple products designed to operate on CDMA2000 or LTE networks, are not licensed under the Apple PLA. On October 30, 2013, InterDigital Technology Corporation and IPR Licensing, Inc. filed a petition to confirm the arbitration award in the United States District Court for the Northern District of California. On December 11, 2013, Apple responded to InterDigital’s petition to confirm the award, stating that it did not oppose confirmation of the award, and on December 17, 2013, InterDigital filed a reply in support of its petition to confirm the arbitration award. A hearing is scheduled on InterDigital’s petition for April 4, 2014.