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3G Licensing and Royalties (includes InterDigital-Infineon 2G/3G chip partnership revenue stream)
Updated November 22, 2006 Most recent posts are by: olddog967, e500, captainslog, Learning2Vest, my3sons, mmbtx_1, Data Rox, Desert dweller, mschere, lastchoice, revlis, H42, sjaym, jimmylee, ellix, denos16, xdx, , vtem01, The Net, GAMCO, ellismd, Loophole 73, TFWG, dboone, rmarchma, sinnett14, bulldozr, MMC89, revlis, MTJBKH, MSC290, olddog967, Dave Davis, Eric, my3sons, Jim Lur, drrtl, sjaym, idcc2006, Corp Buyer, floridian gg, , spencer, laranger, walldiver, golferwalt,, loophole, dndodd, nicmar, Lucky57, j70k, orientbull, olddog, songioan, pochemunyet and infinite q. What these "best posts" on 3G Licensing and Royalties
These posts address 3G licensing and royalties, in general. Another topic (see Nokia Licensing) addresses the efforts of InterDigital to specifically license Nokia and to deal with the litigation initiated by Nokia against to improven their bargaining position over future royalties for 3G.
From the million-circulation international media giant-
"WirelessLedger.com, a web site that comprehensively covers intellectual property rights and patents on mobile techniques" Korea Times, April 15, 2006
See also: Links to "best posts" on these topics related to InterDigital.
Nokia Licensing Nokia settled a long standing arbitration and federal court litigation over royalties on 2G/2.5G wireless devices with a Nokia payment to InterDigital of $253 April 27th 2006. This topic addresses the efforts of InterDigital to specifically license Nokia and to deal with the litigation initiated by Nokia against to improven their bargaining position over future royalties for 3G. Also see these other related WirelessLedger reports Understanding Intellectual Property Understanding the Standards-Setting Process The Nokia-InterDigital Relationship (30 Year Evolution of InterDigital's Business Model)
is your most comprehensive source for investor research on
3G Licensing and Royalties Posts and Threads (includes InterDigital-Infineon 2G/3G chip partnership revenue stream) (generally most recent posts are first below)
UMTS W-CDMA CDMA2000 TD-SCDMA TDD TD-CDMA HSDPA HSUPA
Graphics/formatting added to many posts for clarity by WirelessLedger.com
IMO:Infineon will shortly announce TWO new WCDMA Baseband wins..odds are they are Apple & Samsung. Infineon Bonked by BenQ Fears Europe's second-largest semiconductor maker, Infineon Technologies (IFX), reported a narrower loss for its fourth quarter on Nov. 16. But traders looked past that improvement and ignored speculation that Infineon may have won a supplier contract for the rumored Apple (AAPL) iPhone. Instead, shares fell more than 3% as market players appeared to fret about next quarter, when the company says it expects the insolvency of a major customer to have a negative impact on revenues and earnings. Munich, Germany-based Infineon's net loss for the three months ended Sept. 30 was €36 million ($46.1 million), as sales rose 16% to €2.29 billion ($2.93 billion). That compares with a €100 million loss a year earlier. Analysts at Citigroup had expected a profit of €8 million in the period, they said in a note to investors. Infineon, the former chip unit of Siemens (SI), has been trying to distance itself from the cyclical computer memory chip business and focus on areas such as automotive and communications chips, where margins are higher. Those efforts suffered a setback in September with the insolvency of BenQ Mobile, Siemens' former handset unit (see BusinessWeek.com, 11/9/06, "Siemens Soars, But BenQ Nags"). The company's communications unit took a €75 million charge in the quarter as a result. In the first quarter of fiscal 2007, Infineon expects revenues and earnings before interest and tax to decrease compared to the fourth quarter, "driven mainly by the impact of the insolvency of BenQ Mobile's German subsidiary on the communications segment," the company said in a statement. Infineon also took an €86 million charge related to the restructuring and subsequent initial public offering of Qimonda, its memory-chip unit, in August. While Infineon has announced plans eventually to exit the memory business entirely, Qimonda still accounted for about half of Infineon's sales in the third quarter. The unit posted earnings before interest and tax of €204 million. Infineon's Auto, Industrial, and Multimarket division also turned in a strong performance, with revenues of €740 million and earnings before interest and tax of €64 million, in line with analyst forecasts. Earnings from these other two units weren't enough, however, to compensate for EBIT losses of €120 million from communications chips, which are used in mobile phones, network equipment, and the like. Infineon says sales in the communications group could drop by about €40 million to €50 million next quarter, according to a note by Dresdner Kleinwort Wasserstein. "Given the low overall volumes and fixed costs of this business, we would assume that much of this loss in revenue will flow down to the EBIT," Dresdner said. Robert Sanders, one of the report's authors, says he expects Infineon's communications unit to post a loss before interest and tax of €65 million in the period ending December. That's compared to a loss of €45 million this quarter. One cause for optimism surrounding the communications unit has been growing speculation that its chips will be used in the Apple iPhone, which could be unveiled shortly. Infineon and Apple are keeping mum. Should such a phone come out, it would go some way toward restoring investor faith in the wireless segment, says Dresdner Kleinwort's Sanders. But even if 20 million iPhones were to be sold in 2007, Infineon can't make the communications arm profitable by the end of the year unless it wins more customers, he says. Infineon's shares fell 4% to €9.49 on the Frankfurt Stock Exchange. Its U.S.-traded American Depositary Receipts were down 3.5% to $12.14 in mid-morning New York trading. mscher
WL: HTC is an IDCC licensee IMO:HTC will generate over $4.5 Billion in sales for 2007.. HTC shipments to HP boosts revenues to record high in October Daniel Shen, Taipei; Steve Shen, DigiTimes.com [Monday 13 November 2006] High Tech Computer (HTC) reported record high revenues of NT$10.71 billion (US$326 million) in October, up 20.6% sequentially and up 24.9% on year. Volume shipments of two GPS PDA phones (the hw6920/6925) to Hewlett-Packard (HP) and more own-brand models helped push up HTC's revenues for October, according to analysts at local securities houses. In addition to beginning volume shipments of a HSDPA phone to Cingular (the Cingular 8525) in early November, the company also will start marketing a BlackBerry-like handset (the C720W), a new slide-form factor PDA phone (the C800) and a HSDPA phone (the D810) by the end of this year, according to company sources. HTC expects its revenues to expand 20-30% sequentially to reach NT$31.6-34.2 billion in the fourth quarter from NT$26.36 billion in the third quarter, indicated company sources. mschere
WL: Arima is an IDCC licensee Currently, Arima Comm’s Taiwan plant annual capacity is 10.0mn handsets, and its Wujiang (China) plant annual capacity is 18.0 mn handsets. The combined annual capacity of Arima Comm is around 28.0mn handsets. Wujiang plant is currently upgrading its capacity. When the project is finished in early 1H07, Arima Comm’s combined annual capacity will be as high as 58.0mn handsets in 2007. mschere GET CHART W-CDMA Goes Top in Japan Five Years After Launch http://www.cellular-news.com/story/20411.php W-CDMA was first launched in Japan by NTT DoCoMo in October 2001, with Softbank Mobile (formerly Vodafone K.K.) joining it 14 months later. Exactly five years to the month after the standard was introduced into the market, W-CDMA has become Japan's leading technology, with customers numbering 34.75m at the end of October 2006. PDC became the leading technology in Japan after overtaking NAMTS, the other proprietary Japanese standard, at the beginning of September 1995, and remained top dog for 11 years until September 2006. At the end of October, however, the technology was consigned to second place, with 34.49m customers. The CDMA standard, which is operated exclusively by KDDI's "au" business in Japan, came in third with 24.89m.
As we remarked in The Mobile World Briefing Issue 40, mobile number portability (MNP) was introduced into Japan for the first time at the beginning of October, and the monthly net additions figures from the market's three players take on added significance as a result. They show resounding success for KDDI, as the company itself had confidently predicted, with DoCoMo being the biggest proportionate loser, giving away 110 basis points of market share over the last month. This may not sound very much, but it is more than the company lost in the last three months put together. Also October was only the first month of MNP: if the effect of portability accelerates during the coming months, as it would be expected to, DoCoMo might find itself in for a rocky ride. Total customer numbers topped 94m for an overall mobile penetration rate of 73.8%; adding in PHS subscriber numbers, which rose again in October, these figures become 99m and 77.6% respectively. Total mobile net additions were 265k in October, which is on the lower end of the range the Japanese market has experienced over the last twelve months. Portability does not necessarily make any difference to overall net additions of course, but rather to the distribution of those additions amongst the players in the market, as churn rates are impacted. It is this proportionate picture which gives the most dramatic view of the effect of MNP in its first month. Perhaps the most surprising observation is the apparent immunity of Softbank Mobile from the fight so far. However, these are very very early days, and to draw any conclusions at this stage would be premature. There is very little doubt that Softbank will get pulled into trading blows with its larger rivals sooner or later, although to what effect remains to be seen - that largely depends on the new management and strategy, which so far has made little noticeable impact on the operator's operational statistics. This article was extracted from The Mobile World Briefing, the weekly newsletter from The Mobile World. To download a sample issue of the Briefing in PDF format, please click here. For more information including full subscription pricing, please visit www.themobileworld.com
Posted by: olddog967 mschere: A copy of the 11 page guideline is available at: http://www.ipjur.com/data/061104SECOND-VENICE-RESOLUTION-001.pdf RE: A group of 26 European patent judges have unanimously agreed on rules of procedure for a planned European patent court. Following a meeting in Venice organized by the EPO and the European Patent Lawyers Association (EPLAW) last week, the judges issued a document on November 4 proposing procedural guidelines for the executive committee of the proposed European Patent Court to consider. The guidelines, which run to 11 pages, were drawn up by a small committee of judges chaired by Lord Justice Jacob of the Court of Appeal in London and including representatives from England, Germany, The Netherlands, France and Italy. This so-called Second Venice Resolution follows a resolution a year ago at which the judges backed the creation of a European Patent Court through the European Patent Litigation Agreement (EPLA). The EPLA was drafted in November 2003 to provide a single cost-effective forum for litigating European patent disputes, and a detailed version of the Agreement, incorporating some changes, was published in December 2005. But the Agreement has not yet been implemented. Last month the European Parliament backed the proposal but identified concerns over what the rules of procedure would be. The judges have addressed some of those concerns by setting out an extensive draft of rules covering the service of proceedings, general structure of proceedings and case management (including written phase, interim phase and oral hearing), protective measures or saisies, provisional measures (preliminary injunctions, ex parte and inter partes injunctions), damages, appeals, enforcement and competence. Kevin Mooney, a partner of Simmons & Simmons and president of EPLAW, said the proposed procedures are "much more continental than British" with oral hearings designed to be concluded in just one day. "It is a very front-loaded procedure, with the arguments and evidence up front, not at the last stage." The procedures provide for a meeting between the parties and a rapporteur judge at an early stage followed by a short oral procedure before at least three judges. The draft rules propose that while expert evidence and cross-examination will be allowed, it will be limited. The statement says: "Oral testimony at or before the oral hearing should be limited to disputes identified by the Judge Rapporteur or the panel of judges as having to be decided by oral evidence ... Experts however should be present at all hearings and be available for questioning by the court or the parties. Questioning shall be under the control of the court and shall be limited to what is strictly necessary." It adds that the judges should aim to give their written judgment within three months of the oral hearing, and that the court should "endeavour to give a judgment without dissenting opinion". They also comment on some "subsidiary principles" including the nationality of judges, the limitation period for damages and the joinder of third parties. The judges recommend that lawyers registered to act before the court should be "attorneys at law who are fully entitled to represent parties in ordinary civil proceedings in the courts of first instance of the convention states". They add that court fees should be set at a level that does not deter litigants: "The level of fees should not be such as to restrict access to the European Patent Court to small and medium size companies." And they said that the location of the court's central chamber "should be readily accessible to all parts of Europe". The EPLA proposes that the European Patent Court have one Central Chamber but that the creation of regional chambers in any member state would also be allowed. These chambers would compete for cases. A number of judges are believed to favour Paris as the site of the Central Chamber. Mooney said the procedural rules should lead to more affordable litigation that will be attractive for both SMEs and multinationals: "It should be a fairer, more just and more sensible procedure for the patent community at large." The European Commission is due to announce its proposals on the EPLA and a Community patent on November 22. Internal Market Commissioner Charlie McCreevy has previously indicated that the Commission would support the EPLA and the London Agreement on EPO translations as a means of promoting innovation in Europe. But it is unclear whether the Commission would want to play a role in supervising the court. If the Commission backs the judges' latest proposals, a Diplomatic Conference could be held next year, and the court could be established before 2010. mschere
High-End Cell Phones A Tough Sell
INVESTOR'S BUSINESS DAILY Posted 11/10/2006 New 3G wireless technology has yet to find a home in emerging markets, where cell phone use has surged. That could spell trouble for cell phone makers looking to such markets for much of their growth. Nokia (NOK) and Motorola (MOT) have prospered selling low-cost phones to first-time users in developing countries. Profit margins for such wares are slim — and getting slimmer. Cell phone makers want to sell pricier models, but the dearth of 3G, or third-generation, wireless networks limits their opportunities. About 75% of the world's wireless networks have yet to be upgraded to 3G, the speedy technology that lets cell phones surf the Internet and download music or video. Areas without 3G include the four fastest-growing wireless nations: Brazil, Russia, India and China, known by the initials BRIC. Only one in 10 mobile phones sold worldwide this year will be a 3G model, says market research firm Informa. By year-end 2010, Informa forecasts that only 9% of cell phone users in BRIC countries will be using 3G phones, whereas Japan is at more than 60%. "I don't think 3G will be a big help for handset (phone) makers" in BRIC nations, said Gavin Patterson, an analyst at U.K.-based Informa. Brazil, Russia, India and China have yet to issue national spectrum licenses for 3G services, he says. Olympic Goal "We really don't know when there'll be 3G in China, which has been aiming for the (2008) Olympics," he said. Why does 3G in emerging markets matter to cell phone makers? Handset sales growth in these markets has overtaken growth in Japan, Western Europe and the U.S Merrill Lynch says developing countries — including Southeast Asia, Africa, eastern Europe, and the Middle East — will account for 63% of global unit sales in 2007, up from 42% in 2003. This shift to emerging markets has shaved the average selling price of phone models. ASP is a key metric for cell phone makers. In Japan, 3G has spurred demand for mobile phones that send photos, download music or video clips, and access e-mail. It also has boosted sales in Europe and the U.S., though 3G hasn't gained a lot of steam in those markets yet. In developing countries, though, most people use mobile phones just to make calls. Prices for low-end phones have dropped to $30-$40 in emerging markets, analysts say. In these generally poor markets, most cell phone users aren't big spenders. On average, consumers in many developing countries spend $10 to $15 a month on wireless services vs. roughly $50 in the U.S. Wireless firms are wary of upgrading to 3G in many markets for fear they won't recoup that investment, says Randy Giusto, an analyst at market research firm IDC. "It's going to be a real struggle to get 3G services into emerging markets," Giusto said. Still, cell phone makers are upbeat about 3G's potential. Nokia and Motorola sell some high-end models to the affluent in BRIC nations. They aim to build on that success. Nokia says demand for its N-series multimedia phones has been surprisingly strong in China. "Emerging markets are not just about low-end devices. Take India. It's a polarized market. There is demand for sophisticated (devices) in cities," but also for cheap phones, said Tero Ojanpera, Nokia's chief technology officer. Surging economies are boosting the size of the middle class in India and China. Cell phone makers argue that wireless service providers would turn a profit from 3G investments in BRIC and other developing countries. "It's still early days," Ojanpera said. "There is momentum. There is a need for higher (network) speed. Once the networks are out Replacement-Cycle Growth Motorola has had success in China with its Ming smart phone. Allen Burnes, Motorola's vice president of high-growth markets, says wireless firms in developing countries do a good job of selling simple data services via slower 2G networks. Motorola expects to sell more high-end models in developing countries, even if 3G services aren't rolled out soon. "As our brand grows, our ability to sell mid- and high-tier handsets grows," he said. "It's clear there's a revolution going on in these places. People have a lot more disposable income, and they trade up to (better) handsets very quickly." Some analysts agree. They say affluent consumers in emerging markets will replace their first phones with models equipped with color screens, built-in cameras or music players. So will fashion- or status-conscious consumers. Merrill Lynch says this "replacement cycle" in emerging markets will be the cell phone industry's main growth driver in 2007."People tend to get something better than they had before, whether it's a car, clothes or a cell phone. There's potential in the upgrade market," said Tuong Nguyen, an analyst with research firm Gartner.
Posted by: JimLur To all, Here's the transcript of yesterdays CC. http://wirelessledger.com/IDCC-Transcript%203Q-2006%2011-01-06.doc Posted by: Learning2vest It's not gonna play well with some, but that has never bothered this old mule before. Liked, and was not surprised by, what was said on the cc this morning. ASIC products will give leverage to patent licensing if they are good, and I'm betting that our propeller heads at IDCC will deliver ASIC products that are better than good. I think the move from offering to license the firm's patented tech to delivering fully enabling components is brilliant. It leverages partners to create a much bigger threat to manufacturers who dare to tread on your patent rights. When/if IDCC is "the firm to see" for hot chips that kick ass in the commercial market(why else would they even try?), the game will change. THIS interested observer likes that strategy one HELL of a lot better than watching IDCC pay a bunch of lawyers obscene rates to piss in each other's boots for another decade of litigation. Put this scenario up on the wall just for fun- It's 2008 and IDCC has a line of fully integrated baseband modem ASIC components that are the hottest things going for 3G standards compliant operations,... AND,.. they are multi-mode capable with WLAN/WiMax(Yowser!). In addition, IDCC has the engineering services resources to make those products work with just about anybody's application design. The manufacturing contractors who build hot selling wireless devices for everybody are standing at the ready in Tiawan when somebody like a Steve Jobs at Apple decides to create "the next great wireless thing" with an IDCC engine and transmission. Millions of those next generation wireless IPOD things start selling and other wireless manufacturers have to respond with something that performs as well. Where does THAT kind of scenario put the IDCC vs Nokia relationship? HUH??? I'm thinking it put's it in a better place than some sleepy slick's courtroom is where.
Posted by: captainslog I may not be an old old timer, but IDCC management has never talked that tough. And I don't recall them talking that tough in their 8K either. Imagine what the message is around the negotiation table. It is obscene what ERICY, NOK, SAM have been able to get away with, but with a clean contractual legal slate going into 3G, and a very consistent, strong message, I think IDCC can finally deliver licensing deals from the negotiation table and not from the ICC arbitration table or from the courtroom bench. Look at LG, and as IDCC stays strong and stays the course, so to speak, it is clear to others that there is no longer is an incentive to delay by any means possible. What I'm most impressed about new management is that they stay firm and consistent, and they that they will wait until the deal is good for IDCC. That message resonates throughout the industry. it's clear and unambiguous because they have a clean contractual and legal slate going into 3G and ERICY, NOK and SAM won't find it financially beneficial to delay by any means possible. At the negotiation table, IDCC can now promise other companies that it is a financial benefit to to sign early. IDCC is in a position to give incentives that matter to those who sign early rather than late. The carrot that IDCC can offer is that if you wait another quarter or another year, you will actually save money. While NOK may have gotten off cheap for the 2G obligations, they still had to pay far more than they ever thought. 300 million isn't something even the CEO at NOK can ignore. It makes heads turn. That in itself has earned IDCC tremendous respect. With a clean slate and the bad contractual terms behind them, companies have reason to fear that they will end up paying millions more if they wait and forego prepayment discounts today. LG is prime example. They got the message, and I think others have taken notice. While NOK, ERICY, SAM and others may always be belligerent when it comes to the IPR that they steal, they don't scoff at IDCC today in the same way that they have in the past. All these companies are seriously weighing the actual financial cost it will take to delay signing with IDCC as well as the competitive advantage of doing so. RE: One thing that was difference about this conference call was that BM was not shy about talking about current legal matters. He did not say that there could be no questions about Samsung because of the legal situations and BM was not shy to let everybody know how he felt about the latest legal maneuvers of Samsung and even threatening to seize assets. This open and tough talk about IDCC legal adversaries is something new. I don't think I ever heard such talk before perhaps the oldtimers could remember if it happened during MOT/IDCC. mo Posted by: JimLur Option NV a IDCC licensee reported 3rd quarter earnings this AM. Highlights of the third quarter and year to date included: 3Q06 Vendor Highlights • Nokia: The Finnish powerhouse once again exceeded expectations and set a new industry record by shipping 88.5 million units in the third quarter, surpassing their previous record by 4.8 million units. Double-digit sequential growth was evident in Europe, Asia/Pacific, and North America, with China being a key driver. The growth in China and Asia/Pacific underscores Nokia's emphasis on remaining the top seller in emerging markets. News usually surrounds Nokia's announcements of high-end devices, but the record number of shipments shows that Nokia continues to produce mass shipments of low-end devices equipped to suit the needs of those in emerging markets. • Motorola: Expectations were set high for Motorola in the third quarter, and while some expectations were not met, it should not be overlooked that this was another record-setting quarter . The company continues to excel in 2006 with its sixth straight quarter of growth near 40% or better. Motorola also offered more news on the expansion of the RAZR family, with the launch of the new KRZR and announcements of the RAZR MAXX and the RIZR to follow soon. Continued success from the Q was also a driver of shipments for Motorola in the converged mobile device space. • Samsung: Having spent the first half of the year approaching thirty million units shipped in a quarter, Samsung reached that milestone in 3Q06 and maintained a ten million units lead over the number four vendor, Sony Ericsson. The release of its 'Ultra-Edition' line, a series of slim and stylish devices, in Europe, along with shipment recovery in North America helped drive Samsung's performance in the quarter. • Sony Ericsson: Celebrating its five year anniversary, the 50/50 venture reached a record shipment volume during the quarter. Having moved past LG Electronics for the number four position worldwide in 2Q06, the company extended its lead by more than three million units. In addition, the success of its mid- and high-priced devices, including its Cybershot-branded phones, helped lift ASPs higher than the previous quarter. • LG Electronics: In addition to reaching a new shipment record this quarter, LG also posted a return to profitability after two quarters of losses. Despite these gains, LG fell further behind the other leading vendors this quarter. North America was the primary beneficiary of its shipments, accounting for nearly half of the company's total volumes thanks in large part to the success of its Chocolate phone. Similarly, the company made gains in Europe and Korea. CHART 3GSales
3Q 2006 Mobile Device Shipments Top 245 Million, On Target for 1 Billion by Year End, According to ABI Research LONDON--(Business Wire)--The second quarter of 2006 was a bit softer than expected in terms of handset shipments and prices, but ABI Research anticipates that 4Q 2006 will prove a bumper quarter for mobile operators and handset vendors. "The market topped 245 million mobile devices shipped in 3Q 2006 and the global mobile devices marketplace is on target to reach one billion devices by the year's end," said Jake Saunders, research director of ABI Research. "The handset vendors are pulling out all the stops to get their slickest, flattest, largest music memory, biggest mega-pixel camera phones onto the shelves in time for the 4Q-2006 holiday jamborees." The Gang of Five -- Nokia (36%), Motorola (23.3%), Samsung (12.5%), Sony Ericsson (8.1%), and LG (6.7%) -- all increased market share at the expense of the smaller handset vendors. Economies of scale, and marketing, it seems, are everything. "Initiatives such as super thin phones have helped manufacturers such as Samsung and Motorola gain market share, but Nokia's ability to pump out phones for the emerging markets, cut handset average selling prices (ASPs), and exploit its brand image have served to maintain, and even boost, Nokia's market-share," said principal analyst Stuart Carlaw. The net result of this scramble for market share has been lower ASPs. "The global weighted ASP dropped a steep -7.8% in 3Q 2006 compared to a 1.6% rise in 2Q 2006," said Saunders, "4Q 2006 is unlikely to fare any better. The competition is cut-throat." 3G handset shipment volumes proved to be a bit soft in 3Q 2006. 2.75G EDGE, which has been rolled out by a number of operators, has made the perceived performance gain of owning a 3G phone over a 2G GSM phone less distinct. Also, a number of vendors and operators are planning a big overhaul of their 3G phone line up for 4Q 2006. Recently Vodafone announced that it will be unveiling ten new phones for the festive season, six of which are 3.5G HSDPA-capable. HSDPA effectively "turbo-charges" the 3G experience. HSPDA will dramatically change the download experience for end users wishing to download music, games, etc. The question is, will the turbo-charge kick in quickly enough? The latest handset market data from ABI Research may be found in the Mobile Devices Market Forecasts that form part of the company's Mobile Devices Research Service (http://www.abiresearch.com/products/service/Mobile_Devices_ Research_Service) (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) which also includes Research Reports, Research Briefs, Market Data, Online Databases, ABI Insights and analyst inquiry support. Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services, and market reports in broadband and multimedia, RFID and M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies. For information, visit www.abiresearch.com, or call +1.516.624.2500. ABI Research
Posted by: my3sons87 Walking thru Best Buy last night, I counted about 6 LG phones including the Chocolate, and 5 Sanyo's. There were also a couple of nice SNE. But the Chocolate is way cool. I see why it was such a big hit. My point is that all of the above are IDCC licensee's. The more they sell the better for us.
Posted by: lastchoice rev, someday ifx's ultra-low-cost phones will be 3g. the economic incentive to the service provider will pull all the technology to 3g rapidly. RE: The rapid development of tightly integrated and low cost chipsets from companies such as NXP Semiconductors, Texas Instruments and Infineon Technologies means that shipments of Ultra Low Cost (ULC) mobile phones could reach 48 million units next year, according to Strategy Analytics. http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=193301249
Posted by: Data_Rox m3s - you can think of many of these companies as contract manufacturers - as the final product won't be sold by them to the operator or channel, but will be by the contracting company. Do you think that Arima or Quanta or whoever has a better negotiating position for licensing on the finished product than say... Nokia does? No. Would they have in place all the cross licensing arrangments and paid up licenses that Nokia does? No. Nokia, Motorola, S/E and others that use 3rd parties to manufacture do just that....pay them to manufacture and in some cases design. Those companies then take in the product just as if they made it themselves and distribute it...under the terms of THEIR obligations. They would never turn to a 3rd party to manufacture if the overall cost is higher than if they did it themselves. There are a few exceptions, but on the whole this is how it works with the biggies that make up the majority of the market share. If they've got paid-up licenses for the product they sell, they will not pay for it again...even indirectly. HTC is an example of a company that makes product for others under different brands, and they also sell end product themselves....that is why they have a license....to cover themselves as well as for the little guys that can't negotiate a license. The little guys (without appropriate licensing themselves) that want to buy a product from an ODM or contract manufacturer, will weigh getting the license themselves, or seeing if the contract manufacturer can do it or has arrangments to do it. You can call the company if you need further understanding. Ask ....if in 2007, if one of our licensees manufactures a 2G product for Nokia with the Nokia brand, will we get a royalty? RE: I do understnad having a paid up license for a particular standard would relieve the licensee from having to pay against that standard. But the ODM as well.
Posted by: Learning2vest bulldzr, a thought re IDCC patent value at the chip level vs at the finished device level. I'm guessing it might have something to do with the difference between "what" and "how". We know that most of IDCC's patents relate to making the radio transmissions between mobile handsets and base stations work effectively, i.e., the "air interface". IDCC's patents cover the way a mobile handset and a network of base stations talk to each other. Some examples are pilot channel, closed loop power control, interference cancellation, and multi-mode handover techniques. Let's call all of those very important wireless radio functions the "what" that finished devices must do to work right and in compliance with established standards. Key point is that none of those IDCC "air interface" patents relate to "how" the internal components of handsets and base stations get designed and manufactured. No patents on which functions get designed into the ASIC logic instead of being put into the software programs that will run on that processor for example. IDCC's patents seem to be more about "what" those internal component and software designs end up doing when they are all put together in a finished product than about "how" they go about getting it done. IMO that would explain why IDCC's licensing focus is at the finished product level while firms like QCOM who design, manufacture, and sell the internal components must also protect their patented designs on those pieces and parts. Said another way, component manufacturers like QCOM have patents covering "how" their chip and software designs are able to do "what" IDCC has some very important patents on.
Hmmm... Is it ok to use an overseas foundry partner like Infineon on a DOD funded project these days? And wonder who IDCC will ask to build the handset prototypes for them? Moto?? Given how big a DOD handset buy could turn out to be when/if it happens, there has to be a lot of interest.
FOR LONG ISLAND DEFENSE PROJECTS September 26, 2006 * InterDigital Communications Corporation - Advanced Wireless Technologies - $1 Million Third Generation (3G) Systems will provide access, by means of one or more radio links, to a wide range of telecommunication services supported by the fixed telecommunication networks and to other services that are specific to mobile users. Funding will allow Interdigital and the DOD to demonstrate the feasibility of a 3G tactical wireless handset, including delivery of a chipset, that can operate in a frequency band allowing for worldwide terrestrial operation, evaluate 3G waveform enhancements needed for future radio and satellite devices, evaluate emerging commercial technologies beyond 3G for improved performance of small handheld devices or sensors, and continue the evaluation of advanced antenna schemes to improve overall wireless system performance.
Posted by: Gamco 3G Licensing to lower down licensing fees for Taiwan makers Posted : October 06, 2006 Taiwan – Licensing fees for 3G handsets manufactured by Taiwan makers is expected to be lowered by the 3G Licensing body, according to the Technology Transfer and Service Center (TTSC) of the Industrial Technology Research Institute (ITRI). On average, Taiwan makers are paying a licensing fee of US$2 to US$3 for each 3G handsets using patented technologies owned by 3GLL member companies, including Fujitsu, KPN, Mitsubishi Electric, NEC, NTT DoCoMo, NTT, Sharp and Siemens. The fee may be cut by at least US$1 per piece, when representatives of 3GLL discuss a preferential licensing agreement with local handset makers in October. The 3GLL currently holds a total of 211 patents, or about 20 percent of related 3G technologies. InterDigital, Qualcomm, Nokia and Ericsson hold 80 percent of the patented technologies. ITRI holds 155 related 3G patents. http://www.telecom.globalsources.com/gsol/I/3G-phone/a/9000000079459.htm Gamco
abridged post See original post for detail Posted by: my3sons87 Old 2003 research paper on IDCC by Currin. Everyone should read it. Still applicable. The 2.5/3G Licensing of Interdigital Perhaps some of you know this company has been referred to a “baby Qualcomm” in the wireless community. For others this may be your first exposure to Interdigital. Interdigital has a strong portfolio of patents resulting in revenues associated with 2G and 2.5G wireless. These patents are already bringing in lump sum back payments and royalty bearing licensing from cell phone and wireless infrastructure players. Interdigital has key enabling patents for the transfer of data associated with large downloads of digital media such as streaming video over cell phone interface standards. Understand more how the adoption of high speed wireless connectivity to the internet via cell phones is married to 3G and to Interdigital. Interdigital Communications Corporation (IDCC) is a Patent Leader The first place I’d like to start with having you understand Interdigital is to realize there are over a billion cell phones in use in the world. Despite the recent woes in the telecommunications sector, cell phone usage is continuing to increase and is forecast to be over 3 billion in several years. The second thing to realize is there are almost as many acronyms in the wireless world as there are phones. With that in mind I have a mini glossary of items in this report to help you understand some of the terms you will see as we follow this company. But understanding the minutia of each technology is not the key to understanding Interdigital. The key is understanding that Interdigital’s patents enable many of the technologies. The fundamental business of Interdigital is the world of developing and licensing technologies for wireless communications. Before we even get into who is licensing which acronym just consider the roster of licensees Interdigital already has. The list includes Ericsson, Sony Ericsson, NEC, Sony, Research in Motion, and Sharp as the most significant of the 35 licensees. Interdigital is currently in negotiations to license and receive back payments as well as future royalties from Samsung and Nokia. They already have reached such agreement with Ericsson and NEC. Obviously there is something Interdigital has that these companies need. In a nutshell what these companies need is access to Interdigital’s patent portfolio and expertise. The current volatility of Interdigital is due to issues associated with Nokia for licensing involving technologies widely in use already. Nokia during the course of the negotiations asked a court to unseal the Ericsson/Interdigital agreement. What exactly Nokia is up to did not please the market. Of course for a long term investor that can often be a good thing. WL: This article in post is too long for this space. Here are categories covered in the article. See original My2Sons post for more information. The Licensing Is Really Just Taking Effect Companies Relying On Patent Licensing Revenues The wireless technologies Cellular Primer/Glossary Where Interdigital Fits In All this Alphabet Soup What is TDD? Financial On first glance of a trailing PE, Interdigital looks like a richly valued stock. But take a closer look and you will see the power of patent this company is adding to the bottom line will quickly change that. In an industry under capital pressure, Interdigital reduces capital requirements. In an industry that needs to have bandwidth they enable bandwidth while reducing cost. Interdigital has healthy profit margins, no debt, and a strong patent position in an industry that is reviving itself financially while experiencing constant growth. In my opinion, Interdigital truly does represent a potential for incredible returns. This stock could easily double within the next 18 months and move higher from there in the long term.
Infineon and InterDigital Expand Cooperation
MUNICH, Germany & KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Oct. 4, 2006--Infineon Technologies AG (FSE/NYSE:IFX) and InterDigital Communications Corporation (NASDAQ:IDCC) today announced the expansion of their relationship. Infineon has licensed its field-proven GSM/GPRS/EDGE baseband modem, the S-GOLD(R)3, and protocol stack software from Comneon (a wholly-owned subsidiary) to InterDigital. InterDigital also announced the availability of a complete dual-mode 2G/3G wireless modem platform, including the 3G protocol stack, the licensed technology from Infineon, and InterDigital's own 3G baseband design (WCDMA, HSDPA and HSUPA).
"By licensing our proven baseband technology and protocol stack software to InterDigital, we have increased our ability to expand our leadership in the mobile solutions arena by reaching additional customers interested in developing 2G/3G dual-mode technologies," said Clemens Jargon, Infineon's Vice President and General Manager of Business Unit Feature Phone. "This expanded agreement with InterDigital will shorten the time to market for customers, opening new opportunities and revenue streams for Infineon," he added. The combination of Infineon's leading-edge 2G technology with InterDigital's advanced 3G solution optimizes performance, price, size, and power consumption. This complete modem solution offers customers: -- E-GPRS multi-slot class 12 -- Transmit diversity and Single Antenna Interference -- Comneon's platform independent dual mode WEDGE Protocol Stack -- HSDPA Cat. 8 (up to 7.2 Mbps in downlink) -- HSUPA Cat. 3 (up to 1.5 Mbps in uplink) -- WCDMA advanced receiver and optional receive diversity Under the terms of the extended agreement with Infineon, InterDigital has the right to use the Infineon 2G technology in its own modem offering or to sublicense the technology to third parties developing their own 2G/3G modem offerings. InterDigital also gains access to all of the applicable design specifications, source code and other design data for Infineon's integrated GSM/GPRS/EDGE baseband and protocol stack technology, including the S-GOLD(R)3 baseband processor ASIC design with support for Infineon's market leading RF, Power Management and Connectivity modules as well as related components. "Through the licensing of the Infineon technology, we have fully-enabled all three market channels we intend to use for our modem business," added William J. Merritt, InterDigital's President and Chief Executive Officer. "Those market channels are the licensing of components of the modem, the licensing of the complete design, and the sale of ASICs. We believe that the ability to offer this complete technology suite in a variety of manners, and in a complementary fashion with our patents, can be a value driver for InterDigital." An InterDigital NEWS RELEASE: InterDigital Congratulates Infineon on Powering the Newly Launched GPRS/UMTS 3G Handsets from Panasonic KING OF PRUSSIA, Pa., Oct 06, 2006 (BUSINESS WIRE) -- InterDigital Communications Corporation (NASDAQ:IDCC) congratulates Infineon Technologies AG on the commercial launch of its GPRS/UMTS multimedia platform in Panasonic's new handsets for the Japanese market. "We congratulate Infineon on the commercial launch in one of the most demanding markets," said Mark Lemmo, InterDigital's Senior Business Development and Product Management Officer. "This milestone validates the maturity of InterDigital's contributions and the competitiveness of the platform which has achieved full conformance and successful interoperability testing." Infineon's leading dual mode platform includes InterDigital's contributions to the 3G protocol stack and baseband designs. In accordance with the broad technology agreement between the two companies, InterDigital will receive royalties on a per unit basis for all 3G platforms which include this technology.
Posted by: JimLur To All, Marsala issues new report on Infineon news. http://wirelessledger.com/26122.pdf
Posted by: JimLur In reply to: None To All here's a new report Casey Ryan issued after the Infineon news. http://wirelessledger.com/IDCC-20061005.pdf To add here's some comments one of our investors sent me made by Briefing.com about Ryan's comments. 05-Oct-06 08:25 ET Interdigital Comm: Infineon licensing deal small positive; Samsung resolution remains key issue - Nollenberger Capital (34.80) Nollenberger Capital notes IDCC announced that it has expanded its licensing relationship with Infineon (IFX), which is licensing technology that enables IDCC to provide a complete 2G wireless baseband solution for mobile handsets. Firm does not believe this licensing deal will lead to meaningful rev or EPS over the next 12-18 months. Firm believes that a final settlement with Samsung remains the most critical objective for IDCC mgmt to focus on over the next three to six months. Firm believes that resolving the Samsung arbitration and subsequent legal action is the top priority for IDCC mgmt in the near term. Firm continues to believe that payment by Samsung to IDCC could still occur in 4Q but firm sees an increased chance of the payment slipping into Y07 due to the last-ditch legal efforts by Samsung.
Posted by: Desert dweller I like these numbers as far as Infineon's prior year chip sales. Hopefully when 3g ramps up and the number of phones being sold with 3g is higher than last year's total phone sales in a few years, hopefully Infineon can sell as many chips with IDCC's technology inside. I know it will be years before that happens but if somehow we can be paid royalties on 200 million chips, that has to be anywhere from $50 million/year at $.25 per chip all the way up to $200 million/year at $1.00 per chip at some point in the future. I really don't think we will be getting $1.00 per chip but you never know. Add to that the royalties on the phones and you have to wonder how high the stock price will be in the future. Now if management is only able to sign a 3g agreement or two AND give us some indication of the projected amount of chips Infineon is targeting for next year during the next cc, we could get a nice pop before year end. That would be nice.
Posted by: mschere IMO:Samsung will be Infineon's next win for their GPRS/UMTS multimedia platform Infineon supplies chips for Samsung EDGE handsets April 24, 2006 German chip maker Infineon has announced that Samsung has selected its single-chip radio frequency transceiver for its new EDGE handsets. Samsung EDGE handsets with Infineon's Smarti PM CMOS chip are scheduled to go to market in the second half of 2006. Infineon claims that its chip reduces component count in a complete GPRS/EDGE radio by 30 per cent, requiring 50 per cent less board space for radio frequency than typical handset solutions. The Smarti PM CMOS chip is a qud-band chip for GSM/GPRS/EDGE 850/900/1800/1900 spectrums. Infineon claims to be the world leader in radio frequency chips, having sold more than 200m units in 2005.
Posted by: rmarchma Jimlur re analysts' comments about Infineon news These are two separate news items about IDCC and Infineon as follows: (1) IDCC has licensed Infineon's 2G/2.5G chip solutions into its own dual-mode 2G/3G modem solution. IDCC hopes to sell its 2G/3G modem solution to third parties, including chip companies and handset manufacturers. These would probably be second tier companies, not the first tier companies IMO. If IDCC does sell its modem solution to someone else, then IDCC will owe some royalty to Infineon for its 2G/2.5G portion of IDCC's dual-mode modem solution. (2) Infineon has begun selling its dual-mode 2G/3G chips to handset manufacturers. IDCC has furnished the layer 2 and 3 portions of the 3G protocol stack for Infineon's chips. Therefore when Infineon sales its 2G/3G chip, then IDCC is due to receive royalty from Infineon. Two analysts have made some comment about (1) above, but no analyst has yet to make any comment about (2) above. I think (2) has much more revenue potential to IDCC at this juncture, than (1).
What IDCC and Infineon had to say in January 06. InterDigital and Infineon Expand Cooperative Agreement to Include HSDPA Technology Development
"Infineon believes that by partnering with InterDigital in our 3G protocol stack development, we can more quickly bring a mature 3GPP Release 5 product to our customers, with committed HSDPA deliveries this quarter. We therefore are pleased to have expanded our joint 3G development with InterDigital to include HSDPA," said Thomas Lindner, Senior Director of Marketing at Infineon's Mobile Software Business Unit. "Infineon is the second customer for HSDPA solutions from InterDigital, further validating our strength as an effective technology partner and leading provider of HSDPA technology," said Mark Lemmo, Senior Business Development and Product Management Officer. InterDigital and Infineon also amended the royalty structure established under their original 2001 cooperative agreement. The new royalty rate structure extends the term and amends the per-unit royalty rates to be paid to InterDigital for the sale of Infineon's ASICs containing jointly-developed protocol stack software This news release is available online at http://www.infineon.co
Posted by: bulldzr Another IDCC/IFX article, sorry if already posted. (Thanks to eneerg on AB). Notice Merritt's comments (bolded). http://www.eetasia.com/ART_8800436729_499489_3e0b4f84_no.HTM Infineon, Interdigital fuel ties with combined 2G/3G solution
Infineon licensed its GSM/ GPRS/EDGE S-GOLD 3 baseband modem and a protocol stack software from subsidiary Comneon to InterDigital Communications Corp., intensifying ties between the two suppliers and coming up with an optimum 2G/3G modem solution. The combined 2G and 3G solution from Infineon and InterDigital offer optimum performance, price, size and power consumption. Key features include E-GPRS multi-slot class 12, transmit diversity and single antenna interference cancellation, Comneon's platform independent dual mode WEDGE protocol stack, and WCDMA advanced receiver and optional receive diversity. Moreover, the solution has HSDPA Cat. 8, enabling up to 7.2Mbps in downlink and HSUPA Cat. 3, enabling up to 1.5Mbps in uplink. "InterDigital now offers an entire dual-mode 2G/3G modem suite to customers," said Mark Lemmo, senior business development and product management officer at InterDigital. "By integrating this market proven, evolutionary 2G technology with our own leading-edge WCDMA technology, we have a compelling design solution for semiconductor companies seeking to enter the 3G market, as well as handset manufacturers seeking to design and produce their own 2G/3G modems." Under the extended agreement with Infineon, InterDigital has the right to use Infineon's 2G technology in its own modem offering or to sublicense the technology to third parties developing their own 2G/3G modem offerings. InterDigital also gains access to all applicable design specifications, source code and other design data for Infineon's integrated GSM/GPRS/EDGE baseband and protocol stack technology, including S-GOLD 3 baseband processor ASIC design with support for Infineon's market leading RF, Power Management and Connectivity modules as well as related components. Later and Best, bulldzr
Posted by: lastchoice this is just the start. idcc contributed some software algorith and the silicon gates to get it done. idcc's hsdpa blocks are fully designed silicon--written in a portable, hardware-description-language. idcc' in essence has the chip and a customer can put it right down on their own silicon--minimizing the cost. with the software they have, they can give the handset/pc motherboard/modem card customers a turnkey design. if the td-scdma puzzle comes together, they could be selling virtual handsets to enormous manufacturers. then it could be 200M x $7 per handset. Billion--with a 'B'
Posted by: Desert dweller My guess is that this is just the beginning of phones using Infineon's chips. Assuming this thing works well, and there is no reason to assume otherwise since it is Infineon selling it, if they capture even 10% of the market in the future, it should be a decent amount of money for IDCC. A few years from now there will be a billion 3g phones being sold each year. If Infineon captures 10% of the market and we get even just $.25 per phone, that is almost $.50/share extra in earnings for IDCC. That alone translates into $10 per share at a 20 multiple. Why don't analysts see this? This one small source of future revenue for IDCC could account for almost a third of today's market value and we all know that this will only be a small piece of IDCC's revenue pie. This is good news and hopefully we can get some guidance on the projected number of phones that will be using Infineons chips in the near future.
Posted by: Gamco sjratty - regarding your post copied below: It is important to note that no IDCC analyst's report currently includes ANY ESTIMATE of this new stream of income! Any idea as to how much revenue this will bring? Gamco
Posted by: spencer So IDCC will get double royalties from Panasonic sales in Japan (once from Panasonic and once from Infineon). Cool!
Posted by: Data_Rox DD IMO, the company is working on some niche opportunities for the platform and to some degree may be helping IFX with integration services. The net to IDCC may be that they get less back from IFX/Comneon on the stack shipping with the 3H in exchange for the products licensed yesterday....or maybe they are separate transactions.... JMO
Posted by: olddog967 jangis: As you stated, we have been working with Infineon for quite a while. Maybe it is finally coming to fruition. From the 2001 10-K: " In March, 2001, we entered into a broad, long-term cooperative relationship with Infineon Technologies AG (Infineon) involving the development of FDD (Layer 2/3) software for use with Infineon's terminal unit 3G system-on-a-chip ASICs (Joint 3G Protocol Stack). Each party will own the technology it develops under the agreement. The agreement provides for us to be compensated on a per unit royalty basis on sales of Infineon ASICs containing the Joint 3G Protocol Stack. The agreement also provides that we will serve as If we commence a comparable FDD (Layer 2/3) development effort with another semiconductor company, Infineon may choose to secure another source for its Layer 2/3 solution. The agreement provides for joint marketing of the Joint 3G Protocol Stack in terminal unit applications, as mutually agreed, subject to certain time-to-market restrictions as regards each new software version. Infineon and the Company are each permitted to independently market and use their own portions of the Joint 3G Protocol Stack without restriction. Infineon has committed to cooperate in enabling us to design custom 3G ASICs based on an Infineon platform for both infrastructure and selected terminal unit applications where Infineon would serve as the foundry. Infineon is permitted to sell InterDigital's custom ASICs within its portfolio of products and to re-use our reference design in non-competitive products. We are permitted to market Infineon's standard ASICs which are not a part of the co-development agreement and should receive a commission fixed at then current standard rates. Under the agreement, the parties have cross-licensed each other under patents generally applicable to the jointly developed software and related products. The parties have also agreed to a framework for determining royalties in other 2G and 3G products." http://www.sec.gov/Archives/edgar/data/354913/000095011601000565/0000950116-01-000565-0001.txt RE:
Posted by: mschere IMO:While the Infineon news will bring a fresh revenue stream for Infineon,it is the precursor of announcements of new 3G licensees by IDCC.It will permit IDCC to barter a commission on a $30 Chip set for a comprehensive 2G/3G License. "By licensing our proven baseband technology and protocol stack software to InterDigital, we have increased our ability to expand our leadership in the mobile solutions arena by reaching additional customers interested in developing 2G/3G dual-mode technologies," said Clemens Jargon, Infineon's Vice President and General Manager of Business Unit Feature Phone. ++++ "This expanded agreement with InterDigital will shorten the time to market for customers, opening new opportunities and revenue streams for Infineon," he added.+++++ mschere
Posted by: mschere Goldman Sachs upgrades to BUY 4-Oct-06 08:58 LONDON (MarketWatch) -- Goldman Sachs upgraded chip maker Infineon Technologies (IFX : infineon technologies to buy from neutral, saying it believes Infineon's residual businesses are greatly undervalued. Goldman Sachs said it believes insolvency proceedings at rival BenQ Germany will increase Infineon management's willingness to consider a more significant restructuring of the communications business, which would likely be a positive catalyst for shares. mschere
Posted by: dndodd Not Long!! Would be the logical thought. RE:
Posted by: my3sons87 It is time to monetize this along with a couple of new IPR licenses. Complete 2G/3G Dual-Mode Protocol Stack Now Available from InterDigital; Dual-Mode Protocol Stack Fully Interoperability Tested with GCF Certification Expected Q1 2006 The complete dual-mode protocol stack is available for integration with existing dual-mode baseband solutions. Alternatively, the single-mode 3G stack can be integrated with existing GSM/GPRS/EDGE designs. Key features of the solution include the following items: -- Global Certification Forum (GCF) -certified legacy 2G protocol stack with 75 type approvals and interoperability tested by more than 80 operators in 40 countries; -- 2G/3G dual-mode protocol stack completed ten interoperability tests with major equipment producers and operators; -- 2G/3G dual-mode protocol stack GCF certification expected in early Q1 2006; -- High data throughput performance - customer-based interoperability tests validated peak data rates of 384 kbps in UMTS offerings; -- Adaptable to future releases including UMTS Release 5 scheduled in Q1 2006 and UMTS Release 6 scheduled in the second half of 2006; -- Seamless handover between GSM/GPRS/EDGE and UMTS networks. "A key initiative for us has been to create a comprehensive product offering that we can offer to terminal unit manufacturers in a complimentary fashion with our strong patent portfolio," noted William J. Merritt, InterDigital's President and Chief Executive Officer. "The recent licensing of legacy GSM/GPRS/EDGE technology from Infineon Technologies AG (Infineon) completes a high value dual-mode protocol stack that both expands the target market for our product offerings and creates new synergistic offerings for handset licensees." InterDigital's integrated dual-mode protocol stack is comprised of Infineon's 2G protocol stack and the 3G protocol stack co-developed by InterDigital and Infineon. InterDigital offers full customer support from initial integration through product introduction. To learn more about InterDigital's technology and products, contact sales@interdigital.com. Posted by: Data_Rox 3G Licensing may cut licensing fees for Taiwan handset makers Daniel Shen, Taipei; Steve Shen, DigiTimes.com [Wednesday 27 September 2006] http://www.digitimes.com/telecom/a20060927A8046.html The 3G Licensing entity (3GLL), the licensing administrator of the W-CDMA patent licensing program, is expected to lower the licensing fees levied on 3G handsets manufactured by Taiwan makers, according to sources at the Technology Transfer and Service Center (TTSC) of the government-backed Industrial Technology Research Institute (ITRI). Currently, Taiwan makers are paying a licensing fee of US$2-3 on average for each of 3G handsets using patented technologies owned by 3GLL member companies, which include Fujitsu, KPN, Mitsubishi Electric, NEC, NTT DoCoMo, NTT, Sharp and Siemens, the sources noted. The amount of the licensing fee may be cut by at least US$1 per piece, when representatives of 3GLL visit Taiwan next month for a discussion of a preferential licensing agreement with local handset makers, the sources indicated. The 3GLL currently holds a total of 211 patents, or about 20%, of related 3G technologies, while the most of the rest of 80% of patented technologies are held, respectively, by +++ InterDigital, ++++ Qualcomm, Nokia and Ericsson, the sourced said, noting that ITRI itself holds 155 related 3G patents.
Posted by: olddog967 Ghors: The Patent bill proposed last month by Sen Hatch and cosponsored by Sen Leahy is related to the Patent Reform Bill introduced in the House last year. S.3818 A good summary of the House bill is at: http://en.wikipedia.org/wiki/Patent_Reform_Act_of_2005 According to the summary the only capping of infringement awards pertains to willfull infringement: “Modify the patent law doctrine of willful infringement Based on a quick reading there apparently is a lot of opposition to the House bill. RE:
Cha-Ching.. Nokia new 3G handset. Nokia unveils new 3G phone model All Reuters NewsHELSINKI (Reuters) - The world's top handset maker Nokia unveiled on Wednesday a new third-generation (3G) Nokia 6288 slider phone model, with two cameras and able to play videos. The phone is expected to begin shipping in the third quarter and retail for 325 euros ($412) before subsidies or taxes.
Posted by: rmarchma Mschere re ODM paying royalties when manufacturing for a paid-up OEM. I did not really get an answer to that particular question. An excerpt from my latest conversation with Janet as follows:
However ODM licenses can also be structured to contain “carve-out” provisions, whereby the royalty will be shared by both the ODM and the licensed OEM. These carve out provisions can vary greatly as to the royalty obligation of the ODM and the royalty obligation of the licensed OEM. In some cases most of the royalty can be paid by the OEM and a small part passed through to the OEM, or the ODM could pay a small part of the royalty with the majority being paid by the licensed OEM. Different royalty rates would apply to the ODM under the different scenarios. I tried to get clarification on the question about an ODM, who has some type of carve-out provision to share royalty, selling to a paid-up or fixed royalty licensee of IDCC. I don’t think she had really thought about this, and seemed not to be to sure of her answer. Her tentative response was that she thought that the ODM would still be liable to pay only its part/share of the royalty, even though the licensed OEM would not have to pay anything additional for its respective part. I noted that I use to think that whoever put its brand name on the handset would be the party responsible for paying the royalty. This certainly does not necessarily appear to be the case any longer. Janet said that things are changing. http://www.investorshub.com/boards/read_msg.asp?message_id=12472787
Posted by: mschere Zapping the Competition
How companies are using obscure standards-setting bodies to cripple new technologies and hog-tie rivals.
For centuries obscure standards-setting groups have convened to decide on life's little details: a uniform thread count for nuts and bolts, a uniform diameter for a light bulb socket. More recently standards groups helped usher in the cheap-PC revolution, standardizing the way disk drives and memory chips communicate, helping make them commodities. Now what used to be boring, technical affairs are increasingly riven with accusations of corporate skulduggery and fraud. The reason is that the rewards are bigger than ever. Patent-holding tech companies rely on market-defining standards to rake in huge royalties or lock out competition. Qualcomm, the archetype of a successful patent-licensing company, exploded onto the tech scene after it legitimately embedded patents into early cell phone standards; last year it took in $2.5 billion in royalties. Now the lure of similar riches threatens to corrupt all sorts of new standards and rob consumers of the next generation of cheap technologies, either by strangling them in their crib, indefinitely delaying their development or simply hiking their price. While commercial motives have always played a role in shaping new technology standards, it used to be done in an upfront and "gentlemanly" fashion, says Paul Nikolich, who oversees wireless standards at the IEEE. Now more companies hide their commercial motives from one another, he says, whether through intentional omissions or outright lies. "It is the erosion of transparency that seems to be causing problems these days," Nikolich says. In August the Federal Trade Commission ruled on one of the longest-running standards fights--and the first really ugly one. It found unanimously that chipmaker Rambus (nasdaq: RMBS - news - people ) of Los Altos, Calif. had broken the law when it deceived a standards body in a bid for billions in patent profits. Rambus had filed for a range of patents that ended up in the new standards for fast-memory chips, then ignored rules requiring Rambus to disclose them. At the standards meetings the Rambus group continued to cover up the existence of its patents, the FTC found, undercutting the group's agreed-on goal of limiting patent-holders' power. As the standards took shape, Rambus engineers played even dirtier, amending their patent applications to make sure that they would cover even more of the standards, according to the FTC. Once their intellectual property had been slipped into the standards, Rambus began charging a royalty rate of 3.5% on memory chips. That rate was an abuse of market power deriving from its earlier lies, the FTC ruled. It violated both the Sherman Act and the FTC Act, which bar monopolistic tactics. The FTC is considering possible sanctions. Rambus disputes the findings and plans to appeal. In another dispute also involving Qualcomm, fellow chipmaker Broadcom (nasdaq: BRCM - news - people ) accuses the company of abusing standards set by a different body, the International Telecommunication Union. In this case Qualcomm got its patented material included in the ITU standards fair and square, then reneged on its commitment not to abuse that power, Broadcom alleges. Before patented material is included in a standard, the patent-holder typically agrees to make licenses available on "fair, reasonable and nondiscriminatory terms." Broadcom argues that Qualcomm's charges are unfair. It says that when Qualcomm owned 80% of the key patents in the previous standard, it billed phonemakers a royalty of around 5%. In the new generation it controls just 20% of the patents in the standard--and still charges the same amount. Qualcomm retorts that simply counting patents gives a misleading impression and that its royalties meet the "fair and reasonable" test. Last month a U.S. district court judge dismissed Broadcom's complaint, saying that even if true the behavior wouldn't violate federal antitrust laws. Broadcom says it plans to refile the suit. The ongoing Mobile-Fi fight is messier still. Last year Qualcomm found an alternative way to respond to the threat posed by Mobile-Fi: It spent $800 million to buy Flarion, a company that owned key patents that will likely help define the new standard. Qualcomm then went from accused to accuser, claiming that Intel (nasdaq: INTC - news - people ) was trying to kill or delay Mobile-Fi by stacking the standards group with people loyal to its interests (sound familiar?). Intel's motive, says Ronny Haraldsvik, a marketing executive at Qualcomm, was to protect Wi-Max, yet another wireless standard. Nonsense, scoffed Intel, saying it's happy with all wireless systems because they boost sales of its laptop chips. Steve M. Mills, who heads the IEEE standards process, is preparing new rules aimed at curbing the hanky-panky, such as disclosing conflicts of interest. One can only imagine the jockeying that will ensue. http://www.forbes.com/free_forbes/2006/1002/044a.html?partner=yahoomag mschere
Posted by: H42 InterDigital Files for Patents, Targets Korean Mobile Phone Companies By Kim Won-seok Friday, September 15, 2006
InterDigital Communications, known as a mobile phone patent hunter, is increasing the number of patent filings in Korea, especially filings on 3G (WCDMA/HSDPA) technologies. The Korean patent agency has been less cautious about granting patent licensees to foreign firms unlike its American and Japanese counterparts seeking to delay filings or examining cases more carefully, inviting the concern that the agency needs to take into account national interests. The number of patents held by InterDigital in Korea surged from 24 cases in 2001 to 1,275 in the end of June this year. The company filed 72 cases in 2002, 182 in 2003, 227 in 2004 and 521 last year, doubling the number every year. "InterDigital has filed for patents that are almost considered standards such as spread spectrum," said Gang Hee-gok, investigator at the patent agency. "This year, it has filed for patents on frequency interference-related technologies used to boost data transmission speeds." Such technologies are widely used in the industry, and demand is expected to increase. Patent filings have centered on 3G and 4G technologies in the wireless communications area this year. If WCDMA technology is registered, InterDigital will likely claim its royalty earnings against Korean mobile phone companies right away. Foreign firms like InterDigital also claim a comprehensive intellectual property right when they file for a patent. And industry experts say that the government needs to revamp the patent law by considering the nature of the IT industries such as mobile phones instead of merely seeking to shorten the patent registration period of foreign firms. While the authorities in the United States and Japan begin examining cases 2 years after filings, the patent agency in Korea begins in less than 10 months. "Until the early 20002, it takes 3 to 4 years to win a patent license from filing, but now it has been shortened to about a year," said an industry expert. "Foreign firms stand to benefit from such an environment in the mobile phone area, where technologies are revolving fast." "In Japan, there has been no registration in the MPEG area for almost a decade," said a patent attorney. "Patent registration procedures take much time in Europe and the U.S., too." http://english.etnews.co.kr/news/detail.html?id=200609150005
abridged post WL: RIMM (Blackberry) and HTC (manufacturer for Palm) are InterDigital licensees Shipments of Converged Mobile Devices Hit New Record High in Second Quarter of 2006, Says IDC FRAMINGHAM, Mass.--(Business Wire)--Sept. 12, 2006--
"That quarterly shipments are reaching the 20 million unit mark in a single quarter is a significant milestone," said Ramon Llamas, research analyst for IDC's Mobile Markets team. "As recently as two years ago, it would have taken an entire year to ship that kind of volume. Since then, the converged mobile device, or smartphone, has evolved in terms of functionality and appeal. In addition, as functionalities have increased, prices have decreased, making converged mobile devices not just attractive, but affordable."
Posted by: lastchoice Date:9/12/2006 3:05:00 PM thanks, o'dog. it's (new Palm - see below) to be a strong seller, with an high ASP. more good news for a current licensee. Billion--with a ''B''
WL: Licensee HTC manufacturers phones for Palm Palm Introduces Windows Mobile-Based Treo 750v Smartphone for Vodafone Customers LONDON--(Business Wire)--Sept. 12, 2006-- Palm Experience Delivered on Windows Mobile
Posted by: olddog967 plfm: Here is data as of Dec 31, 2005. For more current info on US patents, you can go to IDCC web site (below) and count them. Our Patent Portfolio http://www.interdigital.com/tech_products_patents.jsp RE: jimlur how many patents does IDCC currently have? eom.
Post is abridged IDCC licensee Sierra with a nice Cingular win. Cha ching. Cingular Adds Sierra Wireless AirCard(R) 875 Wireless WAN LaptopConnect Card to its 3G Device Portfolio Tuesday September 12, 9:30 am ET LOS ANGELES, Sept. 12 /PRNewswire-FirstCall/ - Sierra Wireless (NASDAQ: SWIR - TSX: SW) and Cingular Wireless today announced the availability of a new LaptopConnect card, the AirCard® 875, the most advanced 3G PC Card based upon the GSM global wireless standard. The card is also the first commercially available HSDPA 3.6 Mbps network card in the Americas.
Posted by: mschere Yes..When "we" (IDCC) sell the stack" For Integration in THIRD PARTY baseband"..Unless you think INFINEON has an exclusive and IDCC Dual band protocol software is Limited to Infineon Basebands only.. RE: mschere
Posted by: mschere My comment..Old Research coming home to Roost, which can only aide IDCC in further 3G Licensing. 3G IPR: A Great Mobile Mystery Wireless Equipment 25 January 2005 The wireless industry kept 3G IPR a dark secret,hidden behind a heavy curtain of NDAs. For such an important topic, the lack of disclosure is itself frightening. While investors largely see one company benefiting (i.e., Qualcomm), this position may change in '05 when the ramp of 3G has staggering commercial implications.Many 3G licensing agreements are yet to be negotiated and there are far more IPR holders in WCDMA than GSM, with many existing solely to press patent claims.Some think "market forces" will resolve this but with $5bn-$10bn at stake, this is wishful thinking.The problem is complicated by software and multimedia functions in phones, adding CE IPR claims. Handset vendors lacking IPR to trade (many Asian OEMs) may struggle to make money if cumulative WCDMA royalty rates are 15-20%.Finally, operators subsidising 3G handsets see IPR as another cost to cut: can they do so by applying their purchasing power?Is today's royalty regime unsustainable? +++ It may be built on overly generous definitions by patent holders of what is "essential IPR", while some licensees may be trapped in licensing deals signed years before 3G was standardised. A showdown is brewing between IPR holders supporting a 5% cap on royalty, and other patent holders pressing claims in isolation.None is willing to quantify what "fair and reasonable" WCDMA royalty rates are for specific patents.We see the IPR mystery being solved in two ways. One is by basing royalties off PC card ASPs(i.e., modem), not on wider handset prices (i.e.,loaded with colour displays, CE functionality and brand value). The other is from anti-trust approved patent licensing arrangements, representing a large proportion of essential patent owners and, importantly, operators. +++ If Nokia or Motorola is influenced by operators to join such schemes, a 5% royalty cap (or some similar limitation royalty rate) may gain wider acceptance, sparking an industry-wide deflation of IPR value.Either way, no serious OEM can afford to ramp 3G handset units in '05 without solving this mystery: who owes how much for using which patents? Where's the Evidence? We highlight our 3G forecast (shipments and wholesale ASPs) over the next five years; these totals, $185bn in handset sales coming from 860m units.Any IPR holder that gets even a fraction of a percent stands to gain. Qualcomm is clearly positioning itself for this windfall, claiming it will receive a royalty rate similar to CDMA 1X from all 3G handset vendors (which we compute to be 4.65%).This would translate to over $8bn of royalty revenues ($7bn of profits)based on our five year forecast. Unsurprisingly,Qualcomm does not support industry proposals to cap cumulative royalty rates (even if many industry CEOs do). Their argument is that no other cost item has such a limitation on pricing, so why cap IPR? Yet, there are few choices in licensing technology.Qualcomm had the foresight to agree favourable terms with some handset OEMs (some with "indefinite"agreements).A test case as to whether these are excessive surely beckons. Various independent studies attempted to judge which of the thousands of patents filed are "essential" to the 3GPP standard. While it is almost impossible to quantify the value of each individual patent, several industry studies (i.e., by PA Consulting, the Chinese MII and others)suggest the largest share of essential IPR seems to lie with Nokia, Ericsson and Motorola, followed by Qualcomm,Siemens and others.The Europeans, equally, were the most involved in 3GPP standards efforts. Even so, Qualcomm's stance on royalty demands – a fixed rate for use of any patents - has become a reference point for all patent holders. If we assume Qualcomm sticks to an imputed 4.65% rate, why should patentholders, equally convinced they have portfolios of "essential IPR", settle for less? For those with IPR and a handset business, it can be an easy way to dampen rivals' margins.Many have invested heavily in R&D to develop the WCDMA standard.The question of IPR market share will have to be resolved by some ostensibly "independent" ruling on the importance of patents. Who decides on which IPR is truly "essential" or attaches a value to specific patents? It is not enough to say that past agreements – signed when the industry was far smaller – determine future royalty rates. The evidence offered by many companies about WCDMA agreements remains scant. Many companies - Siemens, Alcatel, InterDigital, NTTDoCoMo - also have wide portfolios in specific - and equally important – niche areas. If Ericsson,Motorola, Nokia and others adopt Qualcomm's stance on IPR, the cumulative royalty rates could far exceed 20%, all but killing off new entrants (i.e., with no 3G IPR). Lawsuits aside, investors often ask how this might get resolved.After all, assuming agreements are watertight, extend into perpetuity and favour a few IPR holders (the dominant perception), what can change? We see two areas where the industry might claim licensing terms should be redrawn. Up For Interpretation The first major change needed is 3G royalties should no longer be based on a percentage of handset ASPs. This has Under this scenario, Flextronics or ODMs might face IPR claims, but net royalty payments would be substantially lower. After all, why should Nokia or Motorola pay royalties on brand value it brings to its 3G handsets. In consumer electronics, this concept of valuing IPR on a portion of the device has long been established with efforts from MPEG LA and other standards bodies. WCDMA royalty payments should Join the Club Could operators cajole the last few "top-tier" handset OEMs to join this licensing programme, particularly as operators play a greater role in setting handset specifications? We understand the GSM Association has recently undertaken work to reduce IPR costs and is known to be sympathetic to the WCDMA Patent Licensing Programme.Its role here should not be underestimated. Such moves increase pressure on Qualcomm – and others - to lower royalty demands,some of which may be bundled with chipsetpricing.If 80-90% of essential patent holders sign up to licensing deals supporting the 5% cap or a similar royalty/unit cap for terminals, a single company demanding a similar rate for a smaller share of 3GPP patents is sure to be tested. If Nokia's stance with InterDigital or Vitelcom is anything to go by, 3G handset vendors think they can solve this mystery themselves. mschere
Posted by: Learning2vest Took a step back after reading Tom Carpenter's comment about how the Nokia/QCOM dispute over 3G licensing rates could be creating some "uncertainty"(i.e. IMO he is implying "delay") in the Nokia/IDCC 3G license negotiations. Wanted to see if I could figure out what Tom's logic was in forming that opinion. Best support I've found so f |
posts and threads related to 
This 3G topic includes posts related to the important partnership between InterDigital and Infineon. InterDigital announced October 4, 2006 that it has extended its licensing arrangement with Infineon (IFX) This allows InterDigital to integrate its own 3G baseband design (WCDMA, HSDPA and HSUPA) with Infineon's 2G suite to offer a complete dual-mode 2G/3G wireless modem platform suite, including the 3G protocol stack. This extended licensing agreement is positive for InterDigital, as it will enable the company to offer a more complete product, and will improve its chances to add new 3G licensees for its technology solutions suite. 
Editor's note: The 
Good get Data_Rox - nice to see that IDCC has a potential ASIC customer at U. S. Department of Defense - DOD (see bolded below). Guess IDCC does need to tell us about it yet since this is just a DOD feasibility study - i.e., it's not "material" until they commit to buy and deploy the devices in quantity.
"InterDigital now offers an entire dual-mode 2G/3G modem suite to customers," stated Mark Lemmo, InterDigital's Senior Business Development and Product Management Officer. "By integrating this market proven, evolutionary 2G technology with our own leading-edge WCDMA technology, we have a compelling design solution for semiconductor companies seeking to enter the 3G market, as well as handset manufacturers seeking to design and produce their own 2G/3G modems."
Since March 2001, InterDigital and Infineon have been developing and commercializing 3G technologies and products in a strategic relationship. Under the expanded agreement, InterDigital and Infineon will continue to jointly develop and upgrade the 3G protocol stack incorporating UMTS Release 5 and HSDPA. InterDigital will be compensated for associated non-recurring engineering services.
How nasty? At one point in 2003 Qualcomm (nasdaq: QCOM - news - people ) was accused of stacking a standard-setting body with dozens of shills, mostly laymen who would hardly be interested in debating the best way to build an "orthogonal frequency division multiplexing network." Qualcomm, panel members said, wanted to kill the new technology to protect its cellular business. The standards group, the Institute of Electrical & Electronics Engineers, allows anyone to sign up, attend meetings and qualify to vote. Qualcomm has denied the charges; in June the IEEE froze the process to sort through the conflicting claims. Meanwhile, Mobile-Fi remains remote for consumers.
Palm (Nasdaq:PALM) today announced the Palm(R) Treo(TM) 750v smartphone, the first Treo smartphone to take advantage of Vodafone's 3G/UMTS network. The Treo 750v brings the Palm experience on Microsoft(R)'s Windows Mobile(R) 5.0 to Europe for the first time. The new Treo 750v will be available first to Vodafone customers in the following countries: Austria, France, Germany, Ireland, Italy, Netherlands, Spain, Switzerland, the UK and other regions by the end of the calendar year.