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What are the potential risks an investor in InterDigital today faces? What are the potential rewards? Does InterDigital have the best "risk to reward" ratio in the wireless communication business? Read informative I Hub posts with the pros and cons here. If the sample posts here are helpful, consider regularly reading the IHub InterDigital board, moderated by Jim Lurgio. The editor of WirelessLedger.com believes that board is one of the best on the Internet for stock investors.

Nokia is the world's largest cell phone manufacturer and accounts for 35% of cell phone sales worldwide. InterDigital has already licensed firms representing 50% of sales worldwide. Nokia is thus the major holdout. Looking for a quicker way than the sometimes 10 year battle in federal courts to force Nokia to pay royalties and licensing fees, InterDigital has asked the United States International Trade Commission (USITC or ITC) to ban the importation into the United States of Nokia 3G cell phones, which InterDigital believes infringe on their patented technology. The patents in question are generally part of the worldwide standard for 3G. Nokia has a heavy burden in defending their position that either (1) InterDigital's llicensing fees are unreasonable, or (2) that Nokia does not infringe InterDigital's patents and thus owes no royalties or licening fees. Samsung faced almost exactly the same challenge last year and settled with InterDigital for $400 million the day before the ITC judgment would be announced. The same judge is hearing this case, which was once coupled with the Samsung case but is now separate.

LOOK HERE FOR A SAMPLING OF THE BEST IHUB POSTS ( SINCE AUGUST 3, 2009) ON THESE FIVE ISSUES

1. NOKIA'S ATTEMPTS TO USE THE "OBVIOUSNESS" DEFENSE AGAINST INTERDIGITAL'S PATENTS
2. THE RECENT SUPREME COURT DECISION MAKING IT EASIER TO ESTABLISH THE "OBVIOUSNESS" DEFENSE
3. ISSUES SPECIFICALLY RELATED TO INFRINGEMENT
4. ISSUES RELATED TO WHETHER INTERDIGITAL'S LICENSING TERMS ARE FAIR

5. UNDERSTANDING THE SETTLEMENT PROCESS
6. PROCESS OF APPEALING A FINDING OF THE ADMINISTRATIVE LAW JUDGE ON WHETHER TO BAN IMPORTS
7. UNDERSTANDING JUDGE LUCKERN'S JUDICIAL PHILOSOPHY AS INDICATED IN SAMSUNG VS SHARP

These posts deal with InterDigital's progress in licensing cell phone market leader (40% share) Nokia for 3G. The immediate interest in the summer of 2009 is the upcoming (August 14, 2009) decision of the administrative law judge for the U.S. ITC as to wether to bar Nokia from importing into the United States 3G cell phones which InterDigital claims violate their patent rights. (Nokia has already paid InterDigital about $200 million to license its 2G phones) A similar 3G case involving Samsung and InterDigital has already been heard by the same judge (Luckern) as in this case. The day before the scheduled announcement of his decision as to whether to bar Samsung 3G phones from being imported, Samsung and InterDigital reached a settlement. Samsung agreed to pay InterDigital $400 million. That settlement encourages most InterDigital observors to believe a settlement will take place with Nokia before August 14th. If a settlement is not reached, the judge will announce his decision. Again, most knowledgeable observors believe the judge will decide that Nokia phones should be barred from importation here. That decision will almost certainly bring an immediate price increase to IDCC shares. There is an automatic review of that decision by the ITC and the president of the U.S. and assuming it is upheld, the importation bar goes into effect.

Nokia is working diligently to market its most sophisticated phones in the U.S. but there is tremendous competition from Apple's i-Phone, RIMM's Blackberry, Palm and LG. Again.most knowledgeable observors believe Nokia has too much at stake to risk an importation ban and will settle, either before the decision August 14, or sometime in the several months thereafter before the ban takes effect (assuming the judge rules for InterDigital). If InterDigital loses on Judge Luckern's decision, the Company can appeal the judgement as well as restart a patent infringment case against Nokia that is on hold in Delaware.

The stakes are big. An InterDigital win and observors believe Nokia will pay InterDigital $300 to $400 million in licensing fees, resulting in substantially higher prices for IDCC shares. If Nokia wins, the IDCC share price takes a hit. But IDCC will still be receiving recurring royalties from their existing licensees while the Delaware infringement trial takes place, providing a significant bottom for the share price.

The excellent IHub posts here offer information and insight into what may happen leading up to August 14th and thereafter. This period will be intensely interesting. Good information will significantly strengthen the hand of investors.

A question on many InterDigital investors' minds is this: "OK, so InterDigital licenses ALL the 3G cell phones, isn't that as much income as the Company can expect going into the future. Wouldn't I be wise to take my profits and sell all my IDCC shares as soon as IDCC has maxed out on 3G licensing, perhaps quite soon? Good question! The posts here help deal with that. For example: Even after everyone who is going to own one has bought a cell phone, the market is shifting to include not only person to person wireless devices (eg cell phones) but also person to machine, and the very promising market of machine to machine. Machines communicating with each other wirelessly (in the same house or plant) or externally, (e.g. the utility company with your electric or water meters, your security system and you or the police/fire). This use of wireless communicattions is just getting started. Might this be an even bigger market than cell phones? OR, how about InterDigital using its millions of "treasury shares" or bought back shares - or their huindreds of millions of dollars of cash on hand to buy out firms with key patents in LTE (who may not be big enough to fight for royalties, like IDCC has had to do). These acquired patents could provide extra licensing fees to InterDigital!

Standards for various parts of what 4G is likely to be, however, are already maturing into worldwide standards, as in IEEE 802.16 and 802.21.

Even these standards, however, are at best, in early release form, with substantial refinements yet to come. Although early pieces of what will likely become 4G are already being implemented, it is the convergence of all the advanced wireless technologies into one device which will combine immense capacity, breakneck speed, and complete

REMEMBER, LTE long term evolution DOES NOT REPLACE 3G, it adds to it. Therefore licensees may be required to pay additional fees when 4G/LTE is included either in an original license or subsequent renewals. At the time of renewals of 3G licensing contracts, additional LTE/4G licensing fees may be negotiated. This would likely result in greater revenue and earnings for InterDigital. Therefore the share price could grow substantially, even after all 3G devices are originally licensed by InterDigital.

As new technologies jockey for positions, which of them strengthen and which could weaken InterDigital's long term position in the industry? Which will lead to increased revenue and shareholder value? The IHub posts in this link deal with these questions and more..