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Posted by: dboone Ron, I don't think the construction of the paragraph is in doubt. I think it clear that 2 and 2.5 are paid up, and 3 g has the threshold.
He is also all about customer solutions, as oppposed to the patent troll concept. As a litigator, I concur. Having customers pay for something they recognize of value is much more efficient than beating them in the courtroom. I think he is the right leader for us. D
Posted by: rmarchma Dboone re the LG license, paid-up and threshold provisions
...."In the first quarter 2006, we entered into a worldwide, non-exclusive, royalty-bearing, convenience-based patent license with LG Electronics, Inc.(LG) covering the sale of (i) terminal units compliant with 2G and 2.5G TDMA-based and 3G standards, and (ii) infrastructure compliant with CDMA2000 technology and its extensions up to a limited threshold amount....The agreement expires at the end of 2010 upon which LG will receive a paid-up license to sell single-mode GSM/GPRS/EDGE terminal units under the patents included under the license." Also notice from the above wording how the "limited threshold amount" appears to be modifying only the (ii) part of the statement and not both parts. If the limited threshold amount were modifying both parts (i) and (ii), then it would seem that there should be a comma after the phrase "CDMA2000 technology". However it appears from what you and others are saying is that Janet is clarifying that the "threshold amount" applies to both terminal units and to CDMA2000 infrastructure. Thanks for the additional elaboration re Campagna's comments compared to Merritt's comments at the ASM.
Posted by: dboone Fla,
WM has made many comments that lead me to believe the patent license business is one of momentum. The more licenses we have, the easier it is to license others. Hope that helps. D
Posted by: bulldzr Even Gercenstein publicly said years ago that the strenth and majority of IDCC's patents and contributions for advanced wireless (3G?) were in the hanset/terminal unit. Why, I don't know. Later and Best, bulldzr
Posted by: lastchoice
there is "some upside possibility," but the bar is very high, any upside will be small. all imo and best recollection. Billion--with a 'B'
Posted by: rmarchma Dboone appreciate your ASM comments, and that you are a fellow Georgian. One question re LG and the threshold you said: ..."I asked JP about the continuing question some have regarding LG. As I understand it, LG is paid on 3g to a threshold level. Below the level, we get the disclosed amount no matter what. Above the threshold, we will receive additional revenue."
You also made the following comment: ..."HC is HC, what more can you say. My impression is that HC is all about HC and WM is all about IDCC and his team. Thank goodness for WM." Could you further elaborate on why you had the impression that Harry is all about himself, whereas Merritt is all about IDCC and his team?
Posted by: dboone Greetings to all: I am just back to ATL from KOP and yesterday's ASM. I continue to be impressed with our investment. I know many have posted regarding the meeting, here are my observations. 1. The meeting seemed more reserved than last year. I think there are two reasons. One, the animus with the shareholders (including myself) was not present. I think the objective, positive accomplishments of the past year made us all feel better. The change in management was a welcome change which has served us well in the first year. Secondly, from public and private discussions, I sense that management is holding their cards close to the vest. It is my impression that last year they were open in discussing where they wanted to go. This year, I think they are in the middle of discussions with a number of our potential customers and they are therefor properly concerned with disclosures. Last year, nothing concrete to worry about. This year??? I think they must be progressing nicely or they wouldn't worry.
3. Per unit royalties for 3g should reasonably be north of 1%. There was some confusion after the meeting about what was said. I heard two distinct comments: we are receiving more than $1.50 per unit on 3g, which is in the 1% license fee area; Our 3g contributions are of greater value, indicating that we should reasonably receive 1.5 to 2% royalty on 3g products. Is that what the other attendees heard? Present 3g units average $200. They will naturally come down in price. 4. Our 2010 revenue projections are reasonably in the 800-850 million area. It could be higher. From the discussions, I don't think management would make these statements/projections if they didn't think they could solidly deliver.
7. NOK: the resolution of the 3g up to the payment date is a good thing. 1st, the 3g numbers are small. 2nd, no license agreement means no arbitration and the milk toast result. With no license agreement, and infringer is liable for much greater damage.
10. Employee Stock Options: The overhang of employee stock options has a defined end. The options are no longer used and their value spans into the 30's. Perhaps 7 million in the money, but any dilution is more than offset by our 300 million buy-back. 11. On the issue of the buy-back. During the meeting RF was asked where we stood. He reiterated the 20 million comment from the last conference call. RF says they won't tell us where they are until earnings anouncement durning the next conference call. My thought is this makes sense, especially if they are taking advantage of dips and if they are concerned about deals in the works. I thought it was a solid, no surprises meeting. Quieter than the last. More stayed. I think this is an indication of the confidence they have in our future. I hope this was helpful and not too repetative of others. Best to all, D
Posted by: mschere Good question..Since Ericsson has the largest Global Share of 3G Infrastructure , perhaps some who follow Qualcomm can furnish some input as to Ericsson's royalty rate to Qualcomm for its Infrastructure sales?
RE: If IDCC's revenue will be 800 million in 2010 after getting paid for all 3G terminal units, then wouldn't it be around 1.5 billion if they could also get paid for all 3G base stations? But apparently IDCC does not think they can license all the infrastructure manufacturers. Why is that? Ericsson 3G base station
Posted by: Data_Rox excellent - thanks for the report KAJ07710 - a buck and a half a phone for 3G is a great target. R
Posted by: sinnet14 I remember Data said about he would be happy to get .5% rate for 3G phones and he thinks that somebody claimed that IDCC to have 1% rate is too high. Phones you got free after rebates don't mean manufacturer sell them for free. You got incentives from operators for signing up the plan agreement. sinnet
Posted by: revlis Bob, Have to run. What I got from Samsung is that there could be a technology agreement along with a license agreement. BM said that Nokia liked to do everything in house but Samsung could be willing to work with IDCC on some R & D. revlis
Posted by: bulldzr Sonny, I think the "Gurus" are talking about an average... hoping for $1 per phone over time. Remember, so far (prior to LG) the only meaningful 3G revenues were coming from NEC, and maybe Sharp and a few others. These were relatively low volume, high priced handsets, hence a higher amount of royalty per phone. Some of the other 3G revs were derived from wireless cards. Also, even though we will record revenue from LG, it is a fixed amount. Currently LG's 3G unit volume is low, therefore the royalty per handset is high. As LG's volumes ramp up, our revenues per phone will decrease because the revenue is fixed. Later and Best, bulldzr
Posted by: TFWG My comments....Just got back from the ASM.... Nothing huge to report: 1) IDCC has seen design wins in products to be offered by Phillips and IFX. Mark would not commit to profit by Q4, but they do expect profit. 2) IDCC is currently receiving plus $1.50 for 3g per handset 3) No update on buyback until Q2 reporting 4) Nothing new on China 5) Nothing to be said about Sammy. 6) IDCC expects to have a fully functional 2g/3g modem available for sale...this year? 7) LTE participant Mr. Merritt $850M in revenue by 2010 is possible with 75% marketshare (speculation I'm sure, but nice for him to say it instead of me!) 9) Nice meeting over all, but mostly sizzle...no steak. Best, Bob
Posted by: TFWG Please remember, Mr. Merritt said it is over a $1.50 TODAY. IMO, as IDCC licenses a few more big dogs, the mix will change and the mean ASP will be reduced. BB
Sierra Wireless expands HSDPA AirCard(R) PC Card line The AirCard 875 is the company's 15th product in the AirCard family and offers true high-speed roaming on 3G networks worldwide
"The AirCard 875 is the latest in a long line of high-quality AirCard PC Card products, built on Sierra Wireless's 13 years of wireless product development experience," said Trent Punnett...
For more information about the Sierra Wireless AirCard 875 please visit
WL note: HTC, an InterDigital licensee, manufacturers phones under other company labels, like i-mate. I-mate promises Smartflip, Windows Mobile-based Razr competitor
Now the company has offered a more concrete glimpse of the handset in its most recent newsletter with a blurb that proclaims the handset is coming soon. The phone, which has been compared with Motorola Inc.’s popular Razr handset, is a quad-band GSM/GPRS/EDGE phone that includes support for Windows Mobile 5.0, a camera, and Bluetooth capabilities. The phone reportedly is 0.6 inches thick, on par with the Razr, and weighs 3.4 ounces. The company did not officially release pricing information, but the phone is being offered for pre-order at a handful of reseller Web sites for $700.
mschere
Posted by: mschere
2006-05-14 About Pantech: mschere
Posted by: MMC89 FOCUS: Gartner Upgrades 06 Mobile Phone Forecast To 960 Million Units 7:16 PM EDT May 30, 2006 By Magnus Hansson STOCKHOLM -(Dow Jones)- Strong first-quarter sales of mobile phones, primarily in emerging markets, led Gartner to raise its projection for the industry's full-year 2006 growth to 18%, and the research firm now predicts that 960 million units will be sold.
(In thousands of units) Company 1Q 2006 1Q 2006 1Q 2005 1Q 2005 Company Web site: http://www.gartner.com (END) Dow Jones Newswires
Ed note- IDCC licensees Sanyo, HTC, and Arima manufacture phones sold under other names, with royalties to IDCC From the conference call dated 4/28 re: Nokia settlement You know, at this point at a high level we cover about 35% to 40% of the 3G market and that’s including both WCDMA and CMDA2000. My comment: Summary of top 6 handset manufacturers:
Motorola: IDCC receives partial 3G royalties through HTC Samsung: In arbitration LG: licensed Ericy: IDCC receives partial 3G royalties through Arima BenQ: status unknown. ( Speculation is that there is a BenQ/Infineon/IDCC connection ) mo
NEC has been at the cutting edge of research and development its field for over a For additional information, please visit the NEC home page at: http://www.nec.com/
For more information, please visit: http://panasonic.co.jp/pmc/company/en/index.html
For additional information, please visit: http://www.huawei.com/ COSMOBIC Technology Co.,LTD　　　　　　　　　　　　 URL:http://www.cosmobic.com
OLD PANASONIC 2G NEWS..RIP! Panasonic to kill GSM phones for 3G Linux handsets December 09, 2005 (IDG News Service) -- Panasonic Mobile Communications Co. is ending development of second-generation (2G) cell phones in the face of "severe global competition" to concentrate on development of third-generation (3G) Linux-based handsets, it said Friday.
The company, which is a unit of Matsushita Electric Industrial Co., will now put its efforts into Linux-based 3G handsets. It's already selling such phones in Japan and hopes to reduce costs by using a common platform for its phones worldwide. As a result of the decision, the company will close its research and development operations at Panasonic Mobile Communications Development Corporation of U.S.A., which has been working on non-Linux systems. The company's European research at Panasonic Mobile Communications Development of Europe Ltd. in the U.K. will turn its attention to 3G and other platforms, Panasonic said. Additionally, the company will close Panasonic Mobile Communications Corporation of the Philippines, where it makes many GSM handsets, and close GSM production at Panasonic Mobile & Automotive Systems Czech SRO. GSM handset production at Panasonic Putian Mobile Communications Beijing Co. in China will be shifted to 3G handsets.
Posted by: Bill Dalglish revlis: Informative Infineon link in your post Thanks! Infineon did a fine job in the February 2006 presentation you link us to. Great graphics (therefore may be a little slow loading in dial up connection. I'm glad IDCC's contributions to the stack part of the chip in partnership with Infineon may draw additional revenues beyond usual royalties. You posted: Old news Infineon 3G baseband processor..DESIGN WIN..PANASONIC/VODAFONE 2G DESIGN WIN..benQ http://www.infineon.com/upload/Document/press_releases/2005/Eul_Press_Briefing_10_02_06.pdf Posted by: rmarchma Sjratty re: Panasonic earned royalty Panasonic received a paid-up license for 2G. Therefore the updated license signed in 2001 involving the $19.5m advance only covers sales of 3G products. Although the Matsushita/Panasonic 3G license was signed in 2001, royalty did not begin accruing until January 1, 2003. Therefore the $12m earned royalty represents 3 years of Panasonic 3G royalty. Prorata that would be $1m of Panasonic 3G royalty per Quarter over the 2003-2005 time period. However I doubt that Panasonic's earned 3G royalty is an equal amount each quarter over the last three years. I would think that Panasonic sold significantly more 3G products in 2005 than they did in 2003.
Posted by: lastchoice InterDigital Issues Revenue Guidance for Second Quarter 2006; Solid Recurring Royalties and Recognition of Nokia Revenue Benefit Quarter KING OF PRUSSIA, Pa.--(Business Wire)--May 30, 2006--
-- $228 million associated with the resolution of a dispute with Nokia related to a prior patent license agreement, -- $50 million to $51 million of recurring patent license royalty revenue from its base of existing licensees, -- $12 million of patent license royalty revenue related to resolution of a licensing matter with Panasonic, and -- $1 million to $2 million of revenue related to technology solution agreements.
payment this year, recording $12.5 million per quarter in each of third and fourth quarter 2006. Panasonic Richard Fagan, InterDigital's Chief Financial Officer, noted, "We continue to benefit from solid contributions from our existing base of patent licensees and we remain optimistic about our prospects for growth as we continue to capitalize on opportunities in the growing 3G market. While the recognition of a large portion of the payment from Nokia in the second quarter will create an unusual quarter, the payment provides further validation as to our ability to generate value from our intellectual contributions to the wireless industry." About InterDigital
Posted by: MTJBKH NEC handset alliance... May 30, 2006 NEC Seeks to Cut Cellphone Costs With an Alliance By SAYAKA YAKUSHIJI
A tie-up would give a boost to NEC's ailing mobile-handset business, helping it break even by the latter half of this fiscal year, which ends March 31, NEC President Kaoru Yano said. NEC, once Japan's top manufacturer of cellphone handsets, saw its group net profit plunge 84% to 12.14 billion yen ($107.7 million) for the year ended March. In addition to foreign-exchange losses, weakness in its handset business weighed on its bottom line. It sold 10.9 million mobile-phone handsets last fiscal year, compared with 13.1 million in the year ended March 2005.
A tie-up among the three companies would mark the latest development in an industrywide consolidation of handset makers, as they step up efforts to shoulder heavy research and development costs for third-generation handsets. The 3G service, which enables users to send videos and download Internet content at high speed, is becoming popular in Japan.
Write to Sayaka Yakushiji at sayaka.yakushiji@dowjones.com1 URL for this article: Copyright 2006 Dow Jones & Company, Inc
Posted by: mschere
OLD IDCC News.. 22nd September 2003
"We congratulate Infineon and Huawei on their recent announcement," said Howard Goldberg, President and Chief Executive Officer. "We look forward to contributing to their success, as well as the overall success of 3G wireless in China. The use of our FDD protocol stack technology, jointly developed with Infineon, is evidence that we are delivering competitive solutions to the 3G wireless market."
OLD IDCC News.. 22nd September 2003 US : InterDigital Communications, a leading architect, designer and provider of wireless technology and product platforms, today announced that its Frequency Division Duplex (FDD) protocol stack technology, a component of InterDigital's complete WCDMA solution, will be utilized by Infineon Technologies AG (Infineon) in solutions to be provided to Huawei Technologies (Huawei) under their recently announced partnership. Inset is President and CEO Howard Goldberg who is quoted.
"We congratulate Infineon and Huawei on their recent announcement," said Howard Goldberg, President and Chief Executive Officer. "We look forward to contributing to their success, as well as the overall success of 3G wireless in China. The use of our FDD protocol stack technology, jointly developed with Infineon, is evidence that we are delivering competitive solutions to the 3G wireless market."
Posted by: mschere IMO:Huawei will be the 1st to market a WCDMA handset under $125, with IDCC Inventions inside! OLD NEWS. Infineon, Huawei aim for cheaper 3G phones
Most 3G phones sell at over 5,000 yuan (US$603), but the two firms expect to bring prices down to that of 2G phones, which average less than 2,000 yuan (US$240) in China, Xu Zhijun, president of Huawei's wireless product line business was quoted as saying in the report. I Both companies will invest about US$20 million investment into the project, and the first operational phone based on the joint platform is expected to be ready by the middle of next year, Xu said in the Xinhua report. Ulrich Schumacher, Infineon's CEO, said in the report that the obstacles 3G faced globally resulted from overemphasis on high-end multimedia and data applications market by telecom operators and equipment makers. This meant sales volume was small, and operators and equipment vendors would not profit much from the rollout of the systems, said the report. "The biggest question is how we can stimulate the 3G market and our co-operation with Huawei aims to find a right approach for that," said Ulrich Schumacher, president and chief executive officer of the German semiconductor firm in the report. "Some 90 percent of customers of WCDMA in China won't use multimedia capabilities. It is more important to provide low-cost handsets, which support just voice communications and short messaging services, than to push high-end handsets with full functionality in China at present," Xu was quoted as saying in a report on Nikkei News. At press time, Infineon in Singapore could not outline the features of the proposed 3G phone, except to say that it would emphasize voice over high-end multimedia and data applications. mschere
Posted by: Bill Dalglish Data: Very helpful! Especially liked "where our contribution..." The real news in the releases was that the Linux smartphone reference design can run the Linux code in the same ARM9 that is doing the call processing for GSM/GPRS/EDGE/UMTS (where our contribution to the stack is)...thus removing the need to have a distinct processor to run Linux in the device...which reduces the BOM (bill of materials). Real Time Linux (RTLinux from FSMLabs) handles interupts much easier than MS or Symbian does, and can play nicer in the "sandbox" so it doesn't cause the phone portion to crash as much. I also perked up reading your statement: Now...we have to see who adopts this reference design so we can get stack royalties (and IPR royalties too!) Thanks, Data Rox! Thanks, mschere, for bringing this potentially very good news about this very creative new Linux/Infineon chip (with InterDigital GSM/GPRS/EDGE/UMTS contributions) to our attention in your posts last night! Bill
Posted by: Data_Rox Bill The ARM9 has been the platform for Infineon for several years now - not based on IDCC.... http://www.infineon.com/cgi-bin/ifx/portal/ep/contentView.do?channelId=-73823&contentId=128117&a...
If you look at the recent releases from Q on their partnership with MS, you'll see that the MSM 7XXX target is using an ARM11 for MS, and ARM9 for modem processing...a "dual core" that can keep the 2 processes distinct (as we all know MS doesn't play nice) and provide real time operations to both. It will certainly cost more than a single ARM9 core.
http://www.arm.com/iqonline/news/marketnews/13416.html
Current mobile phones running operating systems such as Windows, Symbian or Linux utilise two processors to run the embedded software, an applications processor and a baseband processor which is normally used for communications functions Now...we have to see who adopts this reference design so we can get stack royalties (and IPR royalties too!) RTLinux powered 2.5G and 3G cell phones may be in production soon given market trends suggesting that fast real-time capability is one of the key barriers to a broad implementation of Linux in mobile devi
If so, that certainly seems like truly positive news for InterDigital. Would be a very positive outcome of the Infineon/Comneon partnership with InterDigital of 2 or 3 years ago to develop a chip like this, it seems. Thanks mschere, for the fascinating articles you've posted Sun night on this new ARM9 chip's availablity. Bill Posted by: mschere IMO:This should be royalty bearing to IDCC.. RTLinux-powered cellphones may be in production soon, says FSMLabs RTLinux-powered 2.5G and 3G cellphones may be in production soon given market trends suggesting that fast real-time capability is one of the key barriers to a broad implementation of Linux in mobile devices, said FSMLabs.
FSMLabs: we deliver products, not empty promises. http://www.fsmlabs.com/index.php mschere
Posted by: Data_Rox mschere - my questions still stand re: LTE....but I'll modify for you. Please don't take it as a slam to IDCC, but I was asking real questions of you do you really think IDCC is going to participate in LTE? answer - yes If so in what way? licensing, technology, ? Have you reviewed the proposed IPR licensing associated with LTE? http://www.3gpp.org/Highlights/LTE/LTE.htm and here from IDCC's 2005 10K Royalty Rates Could Decrease.
abridged post Posted by: MSC290 "Made in India" phones set to tap global markets Fri May 26, 2006 01:00 PM ET By Shailendra Bhatnagar NEW DELHI (Reuters) - India, already the world's fastest growing wireless services market, is set to become a handset manufacturing and export hub as giants such as Nokia and LG churn out millions of phones to tap voracious demand.
Balance of article: http://go.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=12351417
Posted by: mschere QUALCOMM HINTS AT NO ROYALTY CUT FOR WIRELESS TECHNOLOGIES
The head of Qualcomm Inc. on Thursday hinted that the U.S. wireless chip supplier will not lower royalties for the use of its patented technologies for wideband code division multiple access (WCDMA). WCDMA is an upgraded version of CDMA, which promises faster and better seamless data transfer at a high speed of network connectivity. Qualcomm owns most of the key patents for CDMA and WCDMA.
For each handset sold, local mobile phone manufacturers have to pay royalties of 5.25 per cent to 5.75 per cent, industry sources said. They have called for Qualcomm to lower the royalties as they move to adopt the WCDMA communications platform. According to a report compiled by the Ministry of Information and Communication, the handset makers paid royalties amounting to 3.31 trillion won (US$3.49 billion) from 1995 to 2005 to Qualcomm for using the patented CDMA technologies mschere
Nokia sees consolidation among mobile phone makers
"I continue to see consolidation happen," CEO-designate Olli-Pekka Kallasvuo told the Lehman Brothers Wireless and Wireline Conference in Phoenix, Arizona.
Posted by: lastchoice Verizon and Motorola Announce the Motorola Q (video: http://www.vzwshop.com/q/ ) Exclusive to Verizon Wireless, The QWERTY Smartphone Delivers E-mail, Entertainment and Seamless Mobility in One Ultra-Thin Package
Perfect for customers who multi-task and want flexibility in today's fast- paced business environment, the Moto Q's style and phone-first mantra builds upon the design revolution created by the Motorola RAZR(TM) -- the best-selling clamshell handset in the world. The Moto Q -- which runs Microsoft Windows Mobile(R) 5.0 software -- delivers an uncompromising mobile experience in an all-in-one handheld device that combines the reliability of a greatphone, personal productivity capabilities, powerful enterprise connectivity and entertainment in a thin and stylish form factor. wireless broadband network -- to send and receive data. "The Moto Q is a real must-have device that enables true seamless mobility by liberating all of us from the constraints of our offices and living rooms," said Ed Zander, chief executive officer of Motorola, Inc. "On Verizon Wireless' broadband EV-DO network, the Moto Q brings together all of the converged solutions you need to work, stay in touch or have fun. With the best voice, data and design technology in one ultra-thin, intelligent, hard- working device, the Moto Q allows you to be productive and entertained wherever you go." The Moto Q will redefine what customers expect from a QWERTY handheld. With Windows Mobile software, Moto Q puts a "mini notebook" in Verizon Wireless customers' pockets by providing enough power to let them leave their laptop at home to check e-mail*, review presentations, and stay connected for a week or a weekend. Couple that with its "cool enough for Friday night" design, multiple entertainment options and simple, intuitive features, and the Moto Q will help Verizon Wireless customers stay productive, creative and in- touch while on-the-go and however they choose. Denny Strigl, president and chief executive officer of Verizon Wireless, said, "Enterprise technology, consumer electronics and mobile are converging to create major productivity advantages for the work world. But those advantages have only been available to a select few -- until now. The Motorola Q offers power, style and ease-of-use in a cool ultra-thin format, giving Verizon Wireless customers an uncompromising experience in one device." The Moto Q also makes good business sense for companies -- big and small - - providing a converged mobility solution to help organizations improve their business, increase productivity and efficiency and enhance customer satisfaction. Features of the Moto Q from Verizon Wireless include: -- Integrated Bluetooth(R) 1.2 wireless technology for communicating with compatible headsets, car kits and certain other devices equipped with Bluetooth** technology -- EV-DO access for fast downloads of data, e-mail and large attachments -- Wireless Sync for anytime connectivity with e-mail, calendar and contacts synchronization -- Thinnest QWERTY device in the world - 11.5mm includes a familiar thumbwheel to enhance the navigation experience -- Seamless access to corporate applications, messaging, organizational tools and IT support, from across the campus and around the world -- Synchronization with e-mail, calendar, contacts, and tasks entries, regardless of platform or ISP -- Integrated with Windows Mobile 5.0 software for the convenience of users and IT with access to Yahoo!, Hotmail(TM) and other POP3 -- All standard desktop document views supported including: Microsoft Word(R), Excel(R), PowerPoint(R), Adobe Acrobat(R), etc. -- Supports audio and video formats -- Dual, stereo-quality speakers -- Easy integration with existing IT systems for enhanced IT support -- Enabled for leading corporate e-mail solutions -- Flexibility enables loading of standard corporate VPN -- Password authentication helps ensure network integrity
Billion--with a 'B'
WL ed: Motorola is not yet licensed with IDCC for 3G or 2G Posted by: lastchoice PTC Selects Option GT MAX Delivering HSDPA/UMTS/EDGE Connectivity to Polish Mobile Users LEUVEN, Belgium, May 22 /PRNewswire-FirstCall/ -- Option N.V. (Euronext: OPTI; OPNVY), the wireless technology company, today announced that Polska Telefonia Cyfrowa Sp. z o.o. (PTC) has selected Option's GlobeTrotter GT MAX offering its mobile customers not only the fastest, but also the easiest to use 3G HSDPA/UMTS data card featuring Option's unique flip-out integrated antenna design. The GlobeTrotter GT MAX is customized to the exacting requirements of PTC and will be marketed as the "Blue Connect UMTS/EDGE/GPRS, HSDPA Ready". When PTC rolls out its HSDPA network later this year, a simple firmware upgrade via the operator's website will enable PTC's customers to connect at HSDPA speeds of 1.8 Mbps. Since November 2005, Blue Connect data cards have been offered in the HSDPA-ready' version using two other Option data cards: the GlobeTrotter 3G/EDGE 'HSDPA Ready' and the GlobeTrotter FUSION+ 'HSDPA Ready'. PTC announced in March of this year that HSDPA will be introduced within the framework of the Blue Connect service in 2006. PTC, with more than 10.2 million customers at the end of 2005, holds a leadership position in the Polish mobile market with a 35.1% subscriber share. Their Blue Connect is one of the strategic and most popular services offered by PTC promoting the 'fastest wireless internet - with no limit on data transfer or connection time'. Blue Connect enables convenient, high speed internet access whether at home, in the office or on the go. You just plug the Blue Connect data card to your laptop and let the system automatically choose for you the fastest locally available wireless internet access connection.
Billion--with a 'B'
Posted by: lastchoice Handset Revenues to Peak in 2008 Reaching $129.9B DUBLIN, Ireland--(Business Wire)--May 19, 2006-- Mobile handsets generated $117 billion in revenue in 2005. The top three vendors increased share to over 60 percent of total revenue. This report considers the changing nature of a mobile handset and examines the wide range of applications impacting its development, including mobile music, mobile games, mobile TV, mobile camera, mobile camcorder, and mobile organizer. The report provides vendor market share and forecasts for the mobile handset market both in terms of revenue and subscribers for all the regions. The mobile handset is evolving in two directions. On the one hand, it represents a convergence of feature-sets in a multifunctional device. On the other hand, it represents a divergence of feature-sets in devices focused on specialized applications. This evolution has turned a mobile handset into much more than a medium for voice communication, enhancing the utility of the device and accelerating its growth. This evolution also means that handset manufacturers need competencies in areas that were traditionally not their domain. The roll-out of next-generation networks is opening up new frontiers in innovation in mobile handsets. The high speeds made possible by these networks are enabling a slew of new and novel applications. Increasingly, with the proliferation of applications, voice is becoming a secondary factor when purchasing a mobile device. As high-end markets reach near saturation levels in terms of new subscribers, low-priced handsets are emerging to cater to low-income groups, bringing the mobile phone within reach of all classes of society. Mobile handsets are beginning to penetrate pre-teen and senior citizen market segments, a factor that will make these devices virtually ubiquitous during the forecast period of this report. The mobile handset market has been witnessing phenomenal growth and mobile devices have been undergoing unparalleled advances. Nevertheless, many mobile vendors are finding it difficult to survive in this market as evidenced by the recent exit of Siemens and Alcatel from this business. The reason primarily lies in the falling prices of mobile devices at the low end and intensifying competition at the high However, prices of mobile handsets will keep shrinking and devices at the lower end will incorporate features found in high-end devices. Both of these factors will propel the growth of mobile handset shipments which will more than double over the next 7 years.
The regions of Middle East & Africa, China, Asia-Pacific, and Latin America will witness double-digit growth in handset shipments over the next 7 years. On the other hand, regions that already have a high penetration of handsets, such as Europe, North America, and Japan, will see a slowdown in growth. Despite increase in shipments of the other three major vendors, Samsung, LG Electronics, and Sony Ericsson, their market shares have suffered modest declines. BenQ-Siemens had a dismal year as it slipped from fourth to sixth position. Mobile handsets generated $117.2 billion in revenue in 2005, an increase of 14.9 percent over the sales in 2004. Mobile handset revenue will peak at $129.9 billion in 2008, and will then begin to decline, reaching $125.0 billion in 2012. In 2005, Nokia, Motorola, and Samsung garnered a share of over 60 percent of handset revenue. Sony Ericsson was in fourth place in terms of revenue. Sony Ericsson 4th in revenue, LG 4th in shipments Nokia, Motorola, and Samsung were the top three vendors both in terms of revenue and shipments, the report said. These three vendors increased their share of revenue to over 60 percent in 2005. Sony Ericsson was in fourth place in terms of revenue and LG was in fourth place in terms of shipments. The research report predicted that mobile handset revenue will peak at $129.9 billion in 2008, and will then begin to decline, reaching $125.0 billion in 2012. It said 815.2 million handsets were shipped in 2005, but the shipments will more than double by 2012 to reach 1.7 billion handsets.
Billion--with a 'B'
Posted by: olddog967 mschere: While it is true the the current LG PLA does not cover unlimited 3G sales, any additional royalty will only occur under specific circumstances. Except in regard to CDMA 2000 infrastructure (see PLA article 2.4) there is no so called "threshold" amount in the PLA. In addition, while Article III of the license is titled "LICENSE FEE AND ADDITIONAL ROYALTY", when you read the article you will see that the only additional royalty is if LG acquires other terminal unit businesses.
Posted by: rmarchma IDCC quarterly revenues for latest five quarters as follows: 2005 First Quarter: General Dynamics $4.7m Recurring Royalty = $30.8m NEC (32%) $11.4m ($3.3m fixed 2G per quarter and $8.1m 3G) Sharp (27%) $9.6m Sony Ericy (12%) $4.3m Ericy fixed recurring $1.5m per quarter Sanyo fixed PDC/CDMA2000 $1.1m per quarter Others Recurring Royalty $2.9m Total 2005 first quarter = $35.5m 2005 Second Quarter: General Dynamics $5.5m Recurring Royalty = $33.1m NEC (36%) $13.9m ($3.3m fixed 2G per quarter and $10.6m 3G) Sharp (20%) $7.7m Sony Ericy (estimated) $3.1m (10% of total revenues for first six months less first quarter) Ericy fixed recurring $1.5m per quarter Sanyo fixed PDC/CDMA2000 $1.1m per quarter Late royalty report from 1st qtr $1.1m Others Recurring Royalty $4.7m Total 2005 second quarter = $38.6m 2005 Third Quarter: Past years true-up on new licensees $10.2m (Kyocera = $10m for one prior year) Product and Technology $4.5m (Gen’l Dynamics $3.5m; Phillips $1m) Recurring Royalty = $33.8m NEC (24%) $11.6m ($3.3m fixed 2G per quarter and $8.3m 3G) Sharp (19%) $9.2m Sony Ericy $4.2m Kyocera CDMA2000 fixed recurring $2.5m Ericy fixed recurring $1.5m per quarter Sanyo fixed PDC/CDMA2000 $1.1m per quarter Others Recurring Royalty $3.7m Total 2005 third quarter = $48.5m 2005 Fourth Quarter: Product and Technology $4.3m (Gen’l Dynamics $2.5m; Phillips $1.8m) Recurring Royalty = $36.2m NEC (28%) $11.3m ($3.3m fixed 2G per quarter and $8.0m 3G) Sharp (25%) $10.1m Sony Ericy (10%) $4.0m Kyocera CDMA2000 fixed recurring $2.5m Ericy fixed recurring $1.5m per quarter Sanyo fixed PDC/CDMA2000 $1.1m per quarter Others Recurring Royalty $5.7m Total 2005 fourth quarter = $40.5m 2006 First Quarter: Total Quarterly Revenues = $51.6m Product and technology fees $2.0m (primarily Phillips estimated at $1.5m) Recurring Royalty = $49.6m NEC (22%) $11.3m ($2.2m fixed 2G ended in Feb ‘06 and $9.1m ongoing 3G) LG fixed recurring (22%) $11.3m (for 2.4 months in first quarter, full quarter = $14.3m per quarter) Sharp (18%) $9.3m Sony Ericy $3.9m (estimated based on 2005 average) Ericy fixed recurring $1.5m per quarter Kyocera fixed CDMA2000 recurring $2.5m per quarter Sanyo fixed PDC/CDMA2000 $1.1m per quarter Lucent CDMA2000 fixed $.7m per quarter (only includes licensed Tantivy patents) Others Recurring Royalty $8.0m (includes HTC, RIM, Sierra, Sanyo for GSM/WCDMA, Toshiba, Option, Danger, Quanta, Arima, etc) Total 2006 first quarter = $51.6m
Notice the significant increase in “other” licensee revenues provided by a hodgepodge of different licensees, especially over the latest two quarters. This is especially meaningful since IDCC lost almost another $1m per quarter from other 2G licensees per the third quarter 10Q as follows: “In addition, by December 31, 2005, we will have completed amortization of deferred revenue from other 2G agreements, which collectively contributed $2.5m or 2% of our revenues in the first nine months of 2005.” I think that Arima Communications, who was signed at the end of the third quarter of 2005, might be providing a good bit of this latest quarterly increase in "other" licensee revenues.
I will try to provide some additional thoughts on IDCC’s “other” licensees a little later. When HTC first licensed with IDCC, less than half its revenues came from phone-enabled devices. Now I would guess that a major percentage of its revenues involve phone-enabled devices, but I don’t know how much. I believe that a recent prepaid advance of $15m received in the first quarter came from HTC. If the prepaid is for 1 year, then the indicated quarterly revenues are $3.75m. If the prepayment is for 2 years, then the indicated prepayment is almost $2m per quarter. An excerpt from a previous post today on this issue as follows: ..."in addition, the company has received a $15m royalty prepayment in the first quarter of 2006 from an existing Taiwanese-based licensee which had exhausted its previous prepayment".
I speculate that this second $15m to $16m prepayment received in the first quarter is from either RIMM or Arima Communications. There was no indication on the second prepayment that it was also due to exhausting a previous prepayment, but only that it was from an existing licensee. As to your question about the length of time that these prepayments cover, we really don't know for sure. I would guess between 1 to 2 years. However, I know that Sharp made a prepaid advance one time that was estimated to last for only 10 months at the time of the advance. We do know that Sony Ericy has made two prepaid advances estimated to last 2 years for each of the prepayments.
RIMM is another licensee that could be providing a significant part of the other licensee quarterly revenues. RIMM’s fourth quarter revenues amounted to $560m of which 70% or $392m pertains to handheld devices. RIMM sold 1.1m of these Blackberry devices in the fourth quarter, for an indicated average retail selling price of $350 per device. A 1% royalty would amount to almost $4 per unit, but I would think that there might be some maximum royalty cap per unit on these expensive devices. Sanyo has a fixed royalty on CDMA2000 handsets of $1.1m per quarter, but a per unit royalty on GSM and WCDMA handsets. When Sanyo updated its license in 2004, $5m of the advance was allocated as a prepayment credit against the GSM and WCDMA future handset sales. I don’t know how large Sanyo’s market share is for these handsets, but they are selling dual-mode 2G/3G handsets to Vodaphone Live and Orange in Europe
Danger is another recent licensee, who makes the popular Hiptop devices. I think that they are a private company, and thus no public info is available for them. I don’t think that they would generate significant revenues to IDCC though. Quanta Computer licensed with IDCC late in the third quarter of 2005, along with Arima. Quanta is the world’s largest notebook computer maker, who has fairly recently entered into PDA phones. They had an order with Europe’s O2 for these devices, and there is speculation that they might receive some rather large orders from HP and Acer for PDA phones in 2006. If I had to just make a guess and pull numbers out of the air, I would estimate the following breakout for “other” licensee revenues for the first quarter as follows: HTC = $2.0m Total Other = $8.0m
Posted by: Corp_Buyer "primary responsibility for royalty payment resided with the OEM whose brand name is on the handset" - given the choice, both companies will choose to use the lower rate, which is probably with a large OEM, so it seems logical that a large OEM with the lower rate will pay their royalties to IDCC. Of course, when there is a small OEM with a higher rate than the ODM, or no license at all with IDCC, then the ODM must pay, it seems to me. Thanks for all your financial analyses and commentary. MO,
Posted by: rmarchma IDCC’s Licensing Revenues by years and licensees Detail re IDCC’s licensing revenues by year and by licensee from 1991 through the first quarter of 2006 as follows: The following licensing/royalty revenue is based on info from the 10Q's and 10k's. The earliest I could get back to was 1991. 1991 = 0 1992 = $3m (possibly GM Hughes) 1993 = 0 1994: Total 1994 = $28.5m 1995: Total 1995 = $67.7m 1996: Total 1996 = $28.7m 1997: Total 1997 = $6m 1998: Total 1998 = $92m 1999: Total 1999 = $66.3m 2000: Total 2000 = $51.4m 2001: Total 2001 = $52.6m 2002: Denso discontinued standards $9.7m Kyocera discontinued standards $6.9m NEC pre-2002 infrastructure $7.8m Nokia engineering services $4.5m Recurring Royalty Revenues = $59.0m NEC 2002 recurring $22.5m ($12.4m 2G settlement and $10.1m 3G recurring) Sharp recurring $26.2m ($23.5m PDC and $2.7m GSM/3G) Samsung arbitration $0.5m Others Recurring Royalty $9.8m Total 2002 = $87.9m 2003: Sony Ericy past years’ settlement $20.3m Ericy past years’ settlement $10.6m ($14m - $3.4m expected insurance reimbursement ) Other past year true-ups $0.3m Nokia engineering services $1.0m Recurring Royalty Revenues = $93.0m NEC recurring $33.4m ($13m 2G settlement and $20.4m 3G) Sharp recurring $28.5m ($19.5m PDC and $9.0m GSM/3G) Sony Ericy recurring $13.0m Ericy fixed recurring $6.0m Others Recurring Royalty $12.1m (includes HTC, RIM, Sanyo, Sierra, etc) Total 2003 = $125.2m 2004: Past years true-up on new licensees $1.4m Licensee discontinued standards $0.4m General Dynamics $0.1m Recurring Royalty Revenues = $101.8m NEC recurring $44.3m ($13m 2G settlement and $31.3m 3G) Sharp recurring $25.1m ($12.1m PDC and $13.0m GSM/3G) Sony Ericy recurring $12.7m Ericy fixed recurring $6.0m Sanyo fixed PDC/CDMA2000 $3.3m ($1.1m per quarter x 3 quarters in 2004) Others Recurring Royalty $10.4m (includes HTC, RIM, Sierra, Sanyo for GSM/WCDMA, Toshiba, Option, Danger, etc) Total 2004 = $103.7m 2005: Past years true-up on new licensees $10.2m (Kyocera = $10m for one prior year) Product and Technology Fees $19.0m Recurring Royalty Revenues = $133.9m NEC recurring $48.5m ($13m 2G settlement and $35.5m 3G) Sharp recurring $36.3m ($9.4m PDC and $26.9m GSM/3G) Sony Ericy recurring $15.6m Ericy fixed recurring $6.0m Sanyo fixed PDC/CDMA2000 $4.4m ($1.1m per quarter) Kyocera fixed CDMA2000 recurring $5.0m ($2.5m per quarter x 2 quarters in 2005) Others Recurring Royalty $18.1m (includes HTC, RIM, Sierra, Sanyo for GSM/WCDMA, Toshiba, Option, Danger, Quanta, Arima, etc) Total 2005 = $163.1m 2006 First Quarter: Total Quarterly Revenues = $51.6m Product and technology fees $2.0m (primarily Phillips) Recurring Royalty = $49.6m NEC (22%) $11.3m ($2.2m fixed 2G ended in Feb ‘06 and $9.1m ongoing 3G) LG fixed recurring (22%) $11.3m (for 2.4 months in first quarter, full quarter = $14.3m per quarter) Sharp (18%) $9.3m
Ericy fixed recurring $1.5m per quarter Kyocera fixed CDMA2000 recurring $2.5m per quarter Sanyo fixed PDC/CDMA2000 $1.1m per quarter Lucent CDMA2000 fixed $.7m per quarter (only includes licensed Tantivy patents) Others Recurring Royalty $8.0m (includes HTC, RIM, Sierra, Sanyo for GSM/WCDMA, Toshiba, Option, Danger, Quanta, Arima, etc) Total 2006 first quarter = $51.6m
Posted by: Dave Davis Just poking around the annual reports for some our licensees: Seems like NECs business segment that applies to 3G is the 'Network Solutions' segment, in which they had about $16.8 billion in revenue for the 12 months ended March 31, 2005. http://www.nec.co.jp/ir/en/library/annual/2005/pdf/ar05-18.pdf Don't we (I-Hub members) have InterDigital's royalty revenue from NEC and Sharp broken out some place? Ron Marchma or olddog?
Posted by: mschere HP smartphone
iPAQ orders
mschere
Posted by: mschere Wireless air cards: Option PCMCIA Thanks for your input..I believe Cingular is also offering Option & Sierra WCDMA PCMCIA cards..
Posted by: Eric LG CU320 (l) and Samsung ZX10 UMTS (WCDMA) in the USA RE:
Best, - Eric -
Posted by: my3sons87 3qtr 2005 market share information on US sales. U.S. Cell Phone Sales Reached 31.6 Million Units in Q3 2005 Wed Nov 02, 2005 1:02 pm According to The NPD Group, the leader in market information for the wireless industry, mobile phone sales to consumers in the U.S. reached 31.6 million units in the third quarter of 2005. This number represents solid incremental growth of seven percent from the second quarter 2005 sales volume of 29.6 million units and an increase of more than 30 percent compared to sales during the same period in 2004. NPD estimates total third quarter 2005 consumer sales of slightly more than $2 billion. "The handset market was very robust in the third quarter," said Neil Strother, research director for mobile devices at The NPD Group. "These numbers reflect strong replacement demand among consumers, coupled with more limited growth from new subscribers." According to NPD's Mobile Phone Track, Motorola continued its leadership in the U.S. market during the third quarter, boasting three of the top five best-selling models, including its popular RAZR device at Cingular Wireless and T-Mobile. During the third quarter, Motorola's demonstrated strength was due in part to a significant gain in share within the Verizon Wireless handset portfolio. The battle continues to be intense among LG, Nokia, and Samsung for the number two market position. Motorola Razr V3 NPD reports that manufacturers' third quarter 2005 unit sales and market shares were as follows: Company - 3Q 2005 Unit Sales (in thousands) - 3Q 2005 Market Share Motorola - 9,458 - 30% LG VX6100 The top-selling handset models during third quarter 2005 were the following: 1. Motorola RAZR V3 In the GSM market, Motorola had the leading share with 39 percent, followed by Nokia with 22 percent and Samsung with 14 percent. During third quarter, LG was the leader in CDMA handsets with a 27 percent market share, with Samsung and Motorola tied in second place at 18 percent.
Posted by: Learning2vest Eric, good get and much appreciated. That statement appears to put the Nokia/QCOM licensing negotiations back on the "proportional" track Nokia has been making noises about recently. I'm talking about the idea that IPR licensing rates should have a direct relationship to the "proportional" value of the IPR contributions a firm has within each standard. Nokia appears to be saying that it's about ALL of the patents involved in making a 3G system function in compliance with a standard, not just some aspects. It's going to be interesting to see how that argument plays out with both QCOM and IDCC in the W-CDMA standards.
Posted by: Eric Nokia's Ollila on IP Pass Through ... RE: << My read was that Nokia may also want to eliminate the license provision that allows QCOM to "pass thru" Nokia's cross-license IPR to QCOM's chip customers. >> ... in response to a question by Tim Long of Banc of America at Nokia's last Earnings CC: ... We respect other people’s IPR, and we are ready to reciprocate to participate in accessing the rights to such IPR, and we expect others to respect the similar principles. If you then look at how we have been able to approach all of this, we have also not only been much more active during the last three or four years particularly, but also much more efficient in supporting our rights, and one example being that a lot of discussion has been going around on pass-through rights. Nokia does not provide any pass-through rights to its patents. So, as an example, when we had in January of this year Kyocera joining a growing list of the CDMA manufacturers who have taken royalty-bearing agreements with Nokia, just as an example of how we have been put into a better position, something that we would not have been positioned to look into in the same way seven or eight years ago. ...
http://seekingalpha.com/article/9264 Along with Nokia, Motorola is one of about a dozen GSM/3GSM IP holders thought not to allow QUALCOMM to pass through any licensed or cross-licensed royalty IP. Best, - Eric -
Posted by: mschere InterDigital fully explains the CURRENT status of the Panasonic PLA on page 10 of the 2005 Annual Report. He's referencing Carpenter's latest report dated May 3 as follows: Hilliard Lyons Equity Research 2 Technology InterDigital Communications May 3, 2006 "• IDCC could sign 3G agreements with other top 6 manufactuers this year. Among the top six manufactuers, only LG Electronics has a 3G licensing deal with IDCC. Based on their prior 2G relationship, we believe IDCC and Sony Ericsson could sign a 3G licensing deal by the end of 2006. Also, given IDCC’s success over the past two years licensing Taiwainse manufacturers, a 3G agreement with BenQ/Siemens is possible. Last, we believe IDCC will finally begin recognizing 3G revenue from Japanese manufactuer Matsushita(Panasonic) during 2006, with whom IDCC signed a 3G agreement in 2001."
Posted by: jimmylee Paul and Irwin Jacobs Article from Smartmoney.com - Bullish for a Chip Bully By Nicole Ridgway Published: May 10, 2006 LIKE MOST PEOPLE, I tend not to like bullies. But when it comes to business, I think it pays to look a little deeper into a so-called bully's situation before turning my back on it. Qualcomm (QCOM: 51.38, -0.28, -0.5%) is a fine example. In Microsoft-esque fashion, the wireless chip maker has been painted as the goon of its industry. Last fall, competitors Broadcom (BRCM: 38.73, -0.37, -1.0%), Nokia (NOK: 22.46, +0.07, +0.3%) and Texas Instruments (TXN: 33.79, +0.09, +0.3%), among others, complained to the European Commission that Qualcomm strong-arms "excessive" prices for its chipsets and takes an unfair chunk of royalties for its patents related to the WCDMA (wideband code division multiple access) technology that helps run 3G networks. But I don't think Qualcomm is really a bully. "They have a very defensible position in response to the complaints," explains Christin Armacost, a telecom analyst for Lazard Capital Markets, which makes a market in Qualcomm's stock. In the last 10 years, she notes, Qualcomm has not only charged the same royalty rates to every handset and chip maker that it licenses to, but it has also kept those rates the same over the last decade — even while its portfolio of patents has doubled. That portfolio, which already includes more than 4,500 patents, will only continue to grow. In the tradition of its inventor/founder, Irwin Jacobs (the company is now run by his son, Paul E. Jacobs), Qualcomm has figured out how to anticipate the future needs of the wireless industry and then get there before the rest of the pack. The company not only pioneered the technology behind CDMA — the predecessor to WCDMA and the coveted 3G networks — for wireless phone service, but it recently was the first to market with the latest "3.5G" technology called high-speed downlink packet access, or HSDPA, a wireless standard for GSM networks that can create broadband-like data rates. European networks are GSM, as are those operated in the U.S. by T-Mobile and AT&T's (T: 26.17, 0.00, 0.0%) Cingular Wireless division. Cingular has already unveiled data cards and handsets that use HSDPA. Qualcomm is also gaining traction in two of the fastest growing areas of wireless communications: emerging markets and smartphones (think of Palm's (PALM: 22.70, +0.15, +0.7%) Treo). By lowering its chipset prices last quarter, Qualcomm has taken a bigger bite out of up and coming markets like India and Latin America, allowing for sub-$50 CDMA-based mobile phones that now compete with the once significantly cheaper GSM-based handsets. Increased orders for Qualcomm's low-end chipsets recently caused the company to raise its earnings guidance for its fiscal third quarter ending June 25 to between 38 cents and 40 cents a share, compared to 28 cents a year ago. As for the high end of the market, Qualcomm recently announced a partnership with Microsoft (MSFT: 23.71, -0.06, -0.3%) to launch a smartphone that uses the Windows Mobile software. The software allows users to browse the Internet, write and receive emails and employ a mobile version of Microsoft's Office applications. Some investors may be distracted by Qualcomm's tense negotiations with Nokia to renew a licensing deal that expires next April. (The two companies have quite the love-hate relationship.) Nokia wants Qualcomm to reduce its royalty fees and, well, Qualcomm doesn't want to do that. If talks fall through, then Nokia will no longer be allowed to use Qualcomm's technology in its handsets, which could pretty much wipe out Nokia's ability to sell its 3G products. Qualcomm would lose the rights to Nokia's patents too, but the potential revenue loss for Nokia would outweigh Qualcomm's by a factor of at least 10 to 1, explains Lazard Capital's Armacost, who has a $63 price target on Qualcomm's stock. Shares trade for around $52 apiece right now. For investors, this cash-rich, dividend-paying company has solid growth prospects for the foreseeable future. And let's just say it turns out that Qualcomm is the toughest kid on the playground. The end game in any business is to make money, which Qualcomm is doing, and that doesn't entail sharing one's toys without getting something in return. JL
Posted by: Data_Rox mschere - I would say that they have been offered a similar arrangement, but turned it down due to uncertainty of their market in next 5 years. Kyocera was able to negotiate a change to per unit basis if they desire to do so in the future, but LG's deal is locked in (payment dates and amounts, to be recognised strait line), which is very attractive to a company that is planning on growing. Hope that helps you in your understanding
Posted by: mschere Question..If LG truly received a "reduced 3G rate" as you state..why has NEC , who has a 3G MFL License not been mentioned in any recent IDCC SEC filing? TIA RE: mschere
Posted by: Data_Rox Jim re: per unit see my simple math here: http://www.investorshub.com/boards/read_msg.asp?message_id=10975061 No, I didn't listen to the presentation quick math 2010 3G shipments (estimate from co presentation) = 600,000,000 units ** - Revenue does not include other "products" in this example THAT's what will move the stock price!!!!!!!!!!
Posted by: JimLur Rox, Thanks for posting that. Just came in from the garden. Had a call from an investor and he said in the presentation today Merritt said they get around $1.50 a 3-G phone. Did you or anyone else hear that?
Posted by: drrtl I just received my new annual Report. "Interdigital today is focused on positioning the company to derive revenue from every 3G terminal unit sold. As market expectations for large sales volumes of 3G products are realized, achieving this goal should deliver substantial shareholder value."
IDCC also doing "HSUPA" (slide 8)--WOW!
Posted by: idcc2006 8K is slides of today's presentation. (at Piper Jaffray in NY -WL ed) http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001157523%2D06%2D004971%2Etxt&FilePath...
Posted by: Corp_Buyer
* 3G really taking off in 2007 MO,
Posted by: Data_Rox
olddog - here is a 2006 report posted by GSMA to add to your research notes! http://www.gsmworld.com/documents/external/mobile2006.pdf
Posted by: lastchoice India Adding Five Million Subscribers Per Month Updated Report from Datacomm Research: India Challenges China as Fastest ST. LOUIS, May 8 /PRNewswire/ -- The pace of India's mobile phone market growth is accelerating and the country is on track to surpass Russia and the U.S. in total subscribers. That is one of the conclusions of the updated 86-page report, India's Wireless Market: Model for the Next Phase of Global Wireless Expansion, released today by Datacomm Research Company. "The number of mobile phone subscribers added each month in India has more than tripled over the past year," said Chetan Sharma, President of Chetan Sharma Consulting and the report's author. "India passed Japan in total subscribers last month. Within the next few weeks, India will break through the 100 million subscriber barrier," he added. The updated version of India's Wireless Market: Model for the Next Phase of Global Wireless Expansion provides a comprehensive, accurate, up-to-date, and actionable report on India's wireless market. The study is based on in-depth interviews with executives at operators, application developers, manufacturers, and other players. The report describes India's market, value chain, competition, and regulation and identifies the best and worst
2. India will spend several $billion on wireless infrastructure to accommodate subscriber growth, improve rural coverage, and add advanced services. Significant opportunities exist for leveraging the 450 and 800 MHz bands. 3. India's consumers require low-cost handsets. Handsets are now available for as little as $40. However, many Indian consumers will spend a little more for enhancements such as the ability to download and play music and games. 4. Thanks to low per-minute charges (under $0.03), most Indian consumers pay less than US$10 per month for voice service. Wireless data yields higher margins for operators, providing incentives for affordable text, music and video services
. Posted by: floridian ggg Valid points as well, nic... Bottom line is I'm grateful to the reporter who wrote: "With Nokia also in dispute over ongoing patent licensing with Qualcomm (Qualcomm recently informed the markets there is a risk it may not renew licenses with Nokia after April 2007) the company clearly faces a period where it needs to sort out its licensing policy." This board has discussed this before, but it's not entirely out of the question that an enterprising business writer (NY Times, WS Journal, Barron's, Forbes) would ramp up the issue of IPR theft -- instead of talking about bootleg DVD's in China, delve into the technology arena. And what better story than a recalcitrant foreign company, who's claimed invention should be free for the taking, fighting the American companies who helped make them successful. From such a scenario, a snowball could tumble down towards Nokia, they fall out of favor on the Street because of this litigation risk, and finally management changes their tune. The latter two paragraphs wishful thinking, of course.
Posted by: mschere Let us not forget that Lucent/Alcatel will also require a cdma2000 license from IDCC, as well as from Qualcomm. 2005 Annual Report and Notice of 2006 Annual Meeting and Proxy Statement". Intellectual Property Cases
Nokia and Sanyo will not only need a CDMA2000 license from IDCC, but from QCOM, as well. Maybe IDCC has a "Going out of business" rate. Posted by: captainslog when you want institutions and mutual funds to 'get it' they need worst case scenarios. I think, WM added the 70% in there to give the big guns a worst case scenario. IDCC already gets royality from about 35% of the 3G handsets sold today ( I think).
What a lot of people don't really realize is that the 3G handset market seems like it is here alrady becasue the standard has be so well worn out in the media. Reality is that the 3G handset market is really quite young and is actually only now gaining a head of steam. IDCC has licensed with the first movers in that market. While NOK won't give up as the king of handset sellers, they will be in for some very, very fierce competition. IDCC has laid a groundwork, the foundation of a very profitable position in the 3G market.
Posted by: spencer
So if they can generate $700 million in revenue on 75% of the devices, then that means they should be able to generate $933 million on 100% of the devices.
Posted by: Data_Rox Ranger IMO it means that Nokia 3G CDMA2000 sales and potential royalty revenue to IDCC since 2002 are gone forever. Nokia IS-95 sales were primarily before that time anyway, and no carrier will take them anymore (CDMA2000 1x gives them much more capacity as well as other features) IDCC will negotiate a new worldwide license with the JV and remove the previous limitations on CDMA2000 recognition from the earlier Sanyo license http://sec.edgar-online.com/2004/06/23/0001157523-04-005871/Section2.asp On June 3, 2004, we announced that our patent holding subsidiaries entered into a patent license agreement with SANYO Electric Co., Ltd (SANYO) covering terminal units and infrastructure compliant with 2G and 3G standards. The new license agreement updates and expands a 1998 agreement between SANYO and InterDigital Technology Corporation, our wholly-owned subsidiary, covering products compliant with TDMA-based standards. Under the new agreement, SANYO is obligated to pay us an upfront amount of approximately $27 million, net of any source withholding taxes that may be applicable, which amount can be paid in full early in third quarter 2004 or in two installments ($17.5 million in third quarter 2004 and $10 million in first quarter 2005). We will apply $750,000 of the upfront amount toward the satisfaction of royalties previously recognized as revenue in first quarter 2004 under the agreement in its pre-June 2004 form. For sales of 2G and 3G products (excludingcdma2000 in Japan, the United States and the People's Republic of China and single mode PHS/PDC), we will recognize revenue based on SANYO's reported sales of such products. SANYO may apply its royalty obligation for such products against a $5 million credit provided to SANYO under the agreement, until such credit is exhausted. Upon exhaustion, SANYO is required to pay royalties on a current basis. Due to the inherent difficulty in establishing reliable and objectively determinable evidence of fair value of the remaining portions of the agreement covering sales of cdma2000 in Japan, the United States and the People's Republic of China as well as worldwide sales of single mode PHS/PDC, and consistent with our revenue recognition policy, we will amortize evenly the remaining portion of the upfront payment from second quarter 2004 through fourth quarter 2008, the effective term of the agreement as to such products. We and SANYO have agreed on a process for negotiating additional payments covering cdma2000 sales in Japan after the expiration of the prepaid period and for sales in the People's Republic of China and the United States in excess of an allotted number of pre-paid units. Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
Posted by: laranger DR. Please comment on this:
I'm still curious about the Nokia/Sanyo JV. If the JV is going to produce CDMA phones, could this be why Merritt said Nokia didn't get a pass on CDMA2000? Maybe someone could comment."
Two biggest reasons: 1. Now we have Markman hearings to clarify patent claims construction, making it harder for smooth attorneys to hoodwink juries. 2. IDCC's patent portfolio is probably ten times stronger in 3G than it was in 2G, with IDCC sitting on the 3G standards bodies.
Posted by: golferwalt Loop-What assurance do we have that suing the big 6 for 3G will be any different than the MOT outcome 10 years ago? With our juries & judges nothing is certain. After your 20 years & my 16+ years in IDCC we know nothing is certain & waiting another 16 years makes me 96 so I sure hope we won't have to go thru trials & appeal after appeal to get something worthwhile from 1 or more of the big 6. God Bless, Walt
Posted by: MSC290 BenQ to Deliver First “Super G” Phone? . Tue 02 May 2006 From Gizmodo-The Gadgets Weblog
BenQ’s EWF91 is expected to be delivered to T-Mobile in July, beating out competitors such as Motorola, Nokia and Sony Ericsson. Too bad all this will be happening in Europe, the US remaining the poor stepchild in the cellphone department. http://gizmodo.com/gadgets/cellphones/benq-to-deliver-first-super-g-phone-170988.php
Posted by: MSC290 BenQ and HTC speed up HSDPA phone launch Daniel Shen, Taipei; Steve Shen, DigiTimes.com [Tuesday 2 May 2006] Taiwan-based BenQ and High Tech Computer (HTC) are speeding up the respective launch of their HSDPA (high speed downlink packet access) phones, with BenQ expected to deliver its first HSDPA phone, the EF91, to T-Mobile in July and HTC to begin shipping its model, codenamed Muse, to Qtek (Model S300) in the third quarter, according to market sources BenQ previously indicated that it planned to launch the EF91 in the fourth quarter of this year, according to a previous report. The new schedule may place BenQ ahead of other leading vendors such as Motorola, Nokia and Sony Ericsson for the launch of HSDPA phones, the sources noted. Both BenQ and HTC will promote their HSDPA phones first in the European market, the sources indicated. In related news, Jerry Wang, chairman of BenQ Mobile, stated that the company started small volume shipments of its two new 3G handsets, the S81 and EF81, in April, with shipments to start rising in May. http://www.digitimes.com/telecom/a20060502A1002.html
Posted by: mschere NEC is currently seeking a merger with another Handset OEM, only their Network Operation is profitable...IMO:IDCC is privy to more than has been published.. NEC in tie-up talks with Matsushita, Toshiba to develop 3G cellphones
The Asahi Shimbun NEC Corp. is in tie-up talks with Matsushita Electric Industrial Co. and Toshiba Corp. to develop third-generation (3G) cellphones, sources said. The company wants to spread the huge costs entailed in developing advanced handsets in the crowded market, they added. NEC, which expects an operating loss of 35 billion yen from the cellphone business in the fiscal year that ended Friday, aims to conclude separate agreements with the two rivals by May, the sources said. In the domestic market, there are as many as 15 cellphone makers. They are all struggling to produce profits. In overseas markets, Japanese manufacturers are up against global leaders such as Nokia Corp. of Finland and Samsung Electronics Co. of South Korea. If NEC reaches agreements with the two firms, it will effectively create a three-way alliance. NEC is also considering integrating the three companies' handset operations, while allowing each company to retain its brands, the sources said. Such a tie-up would create a dominant domestic market leader with a 45-percent share. NEC initiated the latest alliance talks, the sources said. The company expects to compile a comprehensive plan in May to turn around its handset operations. NEC, which has expertise in Linux-based operating systems for 3G cellphones, is proposing joint development with Toshiba. NEC currently supplies handsets mainly to NTT DoCoMo Inc., while Toshiba is behind the au service operated by KDDI Corp. By hooking up with NEC in joint development, Toshiba will be able to supply products for DoCoMo and foreign cellphone carriers. NEC, on the other hand, will be able to slash development costs. NEC already has a tie-up with Panasonic Mobile Communications Co., a Matsushita subsidiary supplying DoCoMo handsets, in developing software for cellphones. NEC is also believed to be holding talks with Matsushita to expand the alliance to include sharing components for cellphones. Toshiba and Matsushita both shipped 3.35 million handsets in Japan during the six months through September, the second largest volume after Sharp Corp.'s 3.62 million units, according to market researcher BCN Inc. Toshiba was the fourth-largest supplier, shipping 2.97 million units. Japanese cellphone makers are under growing pressure to restructure their operations. Domestic cellphone carriers are introducing low-price handsets supplied by foreign makers prior to the start of the number portability service in November that will enable subscribers to switch to other carriers without changing their phone numbers. Facing growing pressure to lower product prices, cellphone makers are finding it is increasingly difficult to recover the huge investment costs to develop handsets with advanced functions, such as high-resolution cameras and receivers for the new digital broadcasting service for mobile devices. (IHT/Asahi: April 3,2006) mschere
AMS NEC and IDCC worked out their differences during an arbitration on 2g many years ago. In fact, their 2g portion, which amounted to a total of 80.5 million just closed out in the first quarter. The 3g license was executed in conjunction with the settlement. The settlement with NEC occurred after the 1999 Nok PLA and the recent settlement with Nok should have no effect on its license with IDCC. As a practical matter, I believe at some point NEC will get a break on the royalty it is now paying because IDCC will ultimately have to reduce its rates to get the big six amicably licensed for 3g. However, x% of 100% is a whole lot more x+y% of 14% and far more predictable for the street crunchers to handle. In the alternative, IDCC may be forced to sue the remaining infringing big boys and a jury may set the NEC rate in stone as fair and reasonable for the IPR contributions of IDCC for 3g. That would result in x+y% of a 100% which would be very juicy for IDCC and its shareholders. One thing you can count on is a more uniform rate and discount schedule for 3g than was present during the 2g era. AMS, you continue to whine as much as you can, but the guys still in this stock after the IDCC lawyer blatantly altered a trial exhibit in the Mot case are the ones who got a real bad break. Had that event not occurred, you would not even have a chance at the IDCC ride today for which you bitch. The Eagles would be playing in IDCC Stadium and ole Loop would be living on an island with his own brewery, golf course, landing strip and a madam for his ladies. He would be the oldest white rapper and the finest doctors in the world would be allowed free access and full privileges any time. No practicing lawyers, stock brokers, insurance men or CPA's would be allowed. MO
Posted by: mschere In 2008 only 3% of European mobile phone users will not have 3G Posted by ZDNet Research Digg This! By 2008, just 3% of European mobile users will still use a GSM-only phone, and this will shrink to a negligible 1% by the end of 2010, Forrester Research says. mschere
Matsushita paying would be high on my list of what is next.
Posted by: Learning2vest Anybody wanna play "What happens next?" I'll go first and TIA to anybody who jumps in. 1 - Some of us still have hopes that IDCC extracted some type of 3G licensing contingency from Ericsson and SONY/Ericsson when they settled up on 2G back in March of 2003. If they did(?), and if that contingency happened to be Nokia paying up for 2G(??), we should see something sweet happen there in the next few weeks. 2 - Samsung hooked it's 2G wagon to Nokia's horse, so they are looking at "game over" on their 2G obligations to IDCC. They can either move quickly to negotiate their own terms, or they can let the ICC arb set those terms. With LG's 3G deal already nailed on the walls over there in Korea, Samsung may be thinking it's time to get creative in working out something similar. Why not ante up the 2G payment total and see what kind of payment schedule IDCC is willing to accept for a "blended" 2G/3G settlement agreement. The 2G arb has to be getting "ripe" about now, so tempis fugit if Sammy wants to get ahead of it. 3 - Bill Merritt has been talking about "synergy of IPR licensing and product offerings" since the first day he slid his feet under the CEO desk at IDCC. In addition, he has made it clear on several occasions that he is looking at acquistions and at borrowing money to finance the right opportunities. Remember those comments about "reducing the cost of capital"? IMO he was talking about debt instruments to fund an acquisition and he just got himself in position to make a $300 million down payment. There are some first rate foundry operations out there struggling to keep their market values over $1 bil these days. Be exciting to watch IDCC's engineering design team go after creating incremental market demand for some new 3G ASIC designs after Uncle Bill bought them a marginally profitable foundry operation. 4 - My take on Bill Merritt leads me to believe that he did not burn any bridges in settling the 2G issue with Nokia. Seems more likely that he would use those negotiations to "clear the air" in that relationship. At the same time, my guess is that he made certain Nokia has a clear understanding of where the lines are for negotiating a 3G license with IDCC. IMO Nokia has all it needs to grind around on deciding when it wants to take the next step, and that could come at any time. Nokia's 3G licensing focus seems to be on QCOM at the moment, and I find it interesting to see them talking about "proportional valuations", i.e., Nokia is saying that each firm's 3G IPR licensing rate should have a direct relationship to the "relative contribution" of that firm when ALL of the IPR required to make a commercial product is taken into consideration... I'm thinking Nokia might find it useful to license IDCC's 3G soon enough to use it as an example of their "proportional valuation" argument with QCOM. i.e., "Here is what we are talking about, IDCC has "nxy"(a big number of) IPR contributions in W-CDMA and they are licensing the complete set for "z.n%"(a rate much less than QCOM's ~5% demands). Why should we pay a higher "proportional value" for your contributions?" 5 - Motorola may have been waiting to see what Nokia ended up doing on 2G payments to IDCC. I'm guessing that IDCC still wants "something" from Moto for 2G, but neither party would budge on that issue until Nokia's challenge was resolved regarding the few patents remaining after the Moto legal debacle a decade ago. Well, that happened yesterday and it could be all it takes to put the Moto licensing negotiations into motion.
Posted by: JimLur Nic you said, "No body drops that kind of money for ipr that is unnecessary." How true. I wonder how many 2-G and 3-G licensees legal departments have reviewed IDCC's IPR and determined it was necessary for their company to pony up? I know many investors still wonder if IDCC's IPR is essential so I suggest for those who do to just look at how many attorneys with other companies have reviewed IDCC's portfolio.
Posted by: nicmar I believe the problems in the past with the 2g signings and idcc recognition had been set up many years ago with the qualcom transaction and the mot loss. You know yourself most companies have been piggy backing off of that one jury decision and Idcc has been fighting for 2g monies ever since. Hopefully, 3g will be different. I believe the signing of LG sent a signal that idcc will eventually sign the other 5 majors. No body drops that kind of money for ipr that is unnecessary. Unlike 2g, hopefully this will be somewhat easier since 2g can't be held over idcc's head as a bargaining chip. I hope so and will continue to cuddle up to my idcc holdings with that position in mind realizing there is a chance I may be wrong. Now I have been critical and have become extremely upset in the past for sure.. and I have the right to do so in the future as long as I hold and consider idcc to be a major portion of my portfolio. ... but I will guarantee that if protracted court battles ensue with 3g and I become so disenchanted with idcc that I vacate my position and sell my stock or hold a minor position or bounce in and out as an occasional day trader then... ... I will leave the board and won't hassle other members that believe they have a good investment. I have too much respect for several long holders on this board and besides there surely is just no point in it. That's my upbringing and that's what I've been taught is the honorable thing to do. That's my opinion and it will remain to be that way. Others may feel different, but I suspect not. Off to a lurking mode for awhile, I think. Yep!! Summer is coming. .. .. nic
Posted by: Luckyk57 LG is the watershed everyone should be focused on. IDCC signed a major player to 3G and did so pre-Nokia settlement. They didn't sign for any other reason than our 3G IPR.
Congrats to all fellow longs and to IDCC management 'fer gettin it done'.
Posted by: j70k For whatever it's worth, I think that the shackles of a triggered contract along with the wink/wink indemnification agreement with the named triggers, have now come off and it's this environment that will facilitate 3g licenses with eric and lu as well as pave the way for nok to cut a deal for itself. Removing those restrictions is lost on wall street, but you could tell in UB's voice that he felt this was a tremendous benefit to the entire deal without specifically mentioning those aspects. With more 3g deals coming and the possibility of more shares being purchased, this stock should hold up very well. I like the fact that this settlement came out of left field and more surprises could be in store for our short friends. Hope we have some good news next thursday and projections of continued prosperity. Good job management!
Posted by: orientbull Excellent Post by Eneerg1 Quick Assessment Interdigital pulled the NFL 3G rug out from under Sammy. Now that the lifeline has been severed, Sammy will be under increased pressure to double up 2G+3G. Expect Panntech isn't feeling any better either with LG on the Deck and Sammy on the ropes. Cited N concessions were based on "modest 3G products to date", post 3G Apr 28 non-licensing status (as opposed to year later for Q), IPR rates need to be established for CDMA-2000 inclusion, & quality of the agreement, not how fast we get it. Keep your eye on Q v N. Q's 2G GSM infringement suit may not have taken N by surprise, but it did increase their bargaining power. Interdigital recognizes this, is giving N some breathing room,and is assuredly homing in on E and M, as evidenced fron UB's inference to "top ten" this AM. One subtle difference between 2G and 3G, maneuverability to collude has been removed. The last thing any of the holdouts, particularly ex-MFL triggers E and M need is big brother asking questions. End result is "one on one" negotiations... with the N fallback prop now removed. And Mr. Bernstein's performance was particularly recognized...sounds like economic discussions re the rate itself is now the issue,as oppsed to the obligation to pay the rate. Perception reigns. Virtually every wireless media has spread the news. Don't be fooled by the current stockprice. Interdigital's future has never looked brighter with 35-40%, excluding N, already 3G licensed , particularly as hurdles to 3G are fast collapsing "well ahead of 2G" Posted by: mschere Philips "polymer vision" prototype phone
Most have forgotten the China TD-SCDMA impact.. Regarding China & TD-SCDMA Patents.. InterDigital holds 10X more Patents for TD-SCDMA than Qualcomm.. IDCC and Philips have MORE TD-SCDMA Patents than all the leading IP owners combined.. LG,Siemens, Philips, and InterDigital hold the vast majority of TD-SCDMA Intellectual property. GSM/TD-SCDMA handsets are estimated to account for nearly 25% of all Handsets to be sold in 2008. All of IDCC's 3G Licenses include TD-SCDMA . mschere
Posted by: olddog967 Desert dweller: You keep throwing around statements that we have given away hundreds of millions of dollars of 3G royalty. IMO you are significantly overstating any possible amount. I would appreciate a detailed analysis, not general statements, to support your statement. In addition, I think you forget that in the absense of signing a 3G trigger license before YE 2006, IAW with the PLA Nokia would end the year owing us nothing for 3G. We could then sue for infringement but that would apply for 2007 onward, as opposed to now infringing from the current date. From the PLA: "D. The procedure for applying Nokia’s MFL rights shall be as follows: (i) Until ITC signs a Major Competitor License Agreement, or Nokia selects a non-Major Competitor Agreement as an MFL Agreement Nokia will have no obligation to pay"
Posted by: Desert dweller The most significant part of our leverage was given away today, hundreds of millions of dollars of 3g royalty. Now every other manufacturer that is not licensed will expect royalties to start no earlier than yesterday. Counting the hundreds of millions of cdma2000 phones sold to date and the thousands and thousands of 3g base stations sold to date, how much was just forgiven? They again reinforced the belief to delay signing any agreement with IDCC because if you sign in the future you will pay substantially less than if you sign today. I kind of feel sorry for NEC and Sharp. They sure have paid a lot more than their fair share when compared to the market leaders.
Posted by: songioan 3G essential patent holders. According to the DIME report, IDCC is the the fourth largest claimed essential patent holders of 3G. Table 5: ETSI notified essential patents by firm Firm Claimed number of unique essential patents Nokia 248
Posted by: pochemunyet EVERYONE MUST PAY. That's the message IDCC is slowly getting across. jmo
Posted by: infinite_q Clarence, you're right about the "settlement" with NOK being the prudent thing to do. We get the cash NOW, and the 2G suits are terminated. There is no more uncertainty about 2G. Samsung is basically over. By exercising their MFL clause, SAM basically agreed to go with the 2G rates set by the ICC for NOK. The only dispute had to do with whether or not SAM got the same deal for 3G as NOK under the PLA. Now the PLA is terminated so there is no issue. It's every man for himself when it comes to negotiating a 3G rate with IDCC now. I don't know of anyone left out there with an MFL clause that would apply to 3G now that the NOK/IDCC PLA is terminated. SAM has to consider the LG and Kyocera licenses as setting a precedent for CDMA2000 terms. NEC, Sharp and others have set the standard for WCDMA. IDCC can now deal with these infringers individually. If NOK settles on a 3G rate with IDCC the game will be over. If not, expect IDCC to take the 3G suit all the way. i_q
Posted by: Learning2vest If I was in (CEO) "Uncle Billy's" chair,... I would want to clear out all of the baggage left over from prior management's dealings as soon as I could. Now that the 1999 Nokia "partnership" contract with it's "trigger" structure is "down the tubes", Bill Meritt has an open range for doing his own deals. Stand by for license deals with folks who did not want to engender Nokia's wrath by "triggering" their 3G rates, and for Nokia to get serious about licensing with IDCC for 3G. Samsung has to be spinning around trying to decide what to do right now, and IMO Motorola is updating their estimates as well. Tic, toc.... better to be early than late.
WirelessLedger editor: The 35 page Jan. 12, 2005 formal complaint to federal court by Nokia against InterDigital is permanently available here on the wirelessLedger.com site
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When I spoke with WM last year, we discussed generally the method which he seeks to license. My interpretation was that he wants clean licenses, without "triggers", based upon set unit amounts with an opportunity for us to do better if the customer does better. He doesn't want any more litigation than absolutely necessary.
One correction re the paid-up status of LG. It appears that they will be paid-up for single-mode 2G/2.5G products at the expiration of the initial licensing term 12/31/2010, but they will NOT be paid-up for 3G. Therefore, IDCC and LG will have to renegotiate 3G terms and rates for 2011 and beyond. From the latest Annual Report as follows:
The May 30 8-K, item 8.01 mentions resolution of the Panasonic patent dispute. The important aspects were exhaustion as of 12/21/05 of 12 of the 19.5 million paid in 2001 for the license and an agreement that certain products were in fact infringing on our patents. From conversations with WM, the more voluntary licenses we accumulate, and the more infringement we demonstrate, the harder it would be for someone to litigate against our IP.
ronnie, i asked jp some weeks ago a very specific question about the lg deal. she said there was a provision for upside, but was clear that the threshold was very high. imo, the lg deal will look very much like the $14m per quarter. we also discussed kyocera, and although i'm a little fuzzy at this time, they were more of a flat fee and convert to save kyocera money. bottomline, idcc took upfront money--all monies in the first three years--and effectively capped the amount.
Is this your interpretation, or is this what Janet Point actually told you? I tend to think that the LG threshold might only apply to CDMA2000 infrastructure, and not to handsets and other terminal units. Could you also elaborate on why you feel the following: "I also sense that exceeding the unit threshold during the 5 years could happen".
2. WM acts as a very secure and confident CEO. I think he feels confident in his company motto that they are looking to be paid on every 3g terminal unit. In post mtg discussions with BM, I confirmed that this includes MOT, that the verdict of the 90's has no effect on 3g, and that they are focused on "all 6 of the majors". HC is HC, what more can you say. My impression is that HC is all about HC and WM is all about IDCC and his team. Thank goodness for WM.
5. Post mtg I asked JP about the continuing question some have regarding LG. As I understand it, LG is paid on 3g to a threshold level. Below the level, we get the disclosed amount no matter what. Above the threshold, we will receive additional revenue. The LG agreement is a five year deal. After 5 years, they will require an additional license. I gathered that we are very likely to receive additional revenue after the 5 year period. I also sense that exceeding the unit threshold during the 5 years could happen. How likely? I don't know. Go LG!
6. I discussed the poision pill. It expires at the end of this year, 2006. Management will review the propriety of another such protective measure. My sense: we will have another poision pill. We don't "need" a partner, we are not hurting in any way, and I don't get the feeling that management will do anything to compromise our ability to receive full share value as our 3g market and revenue continue to grow. BM told me that he wants to maximize shareholder value, and I believe him.
8. Panasonic: Great for us. The admission of infringement is important to their payment of fees, but of greater import to others in licensing discussions and, perhaps more importantly, as proof of infringement later in litigation, if that becomes necessary.
9. 802 products will pay us revenue independent of the 3g units used in the revenue projection graph. The size of the 802 market is uncertain, but they seem excited about the convergence of 802 and cellular. As 802 is incorporated into cellphones, the value of our inventions increases which should help raise our royalty percentage. As 802 independently expands, we will have a separate "product" line. Last year, BM told me that he was very excited about the 802 market and it's overall effect on wireless. This year, he gave me the same impression, although more closely guarded.
VANCOUVER, June 1 /PRNewswire-FirstCall/ - Sierra Wireless (NASDAQ: SWIR - TSX: SW) today introduced the 15th product in the company's flagship AirCard(R) product line, the AirCard 875 wireless wide area network card for HSDPA networks. The AirCard(R) 875 offers increased data speeds and high-speed worldwide roaming, with tri-band HSDPA / UMTS and quad-band Class 12 EDGE / GPRS connectivity. Commercial shipments of the card are expected to begin in the third quarter of this year.
According to the GSM Association, GSM-based networks (which include GPRS, EDGE, UMTS, and HSDPA network technologies) have been deployed in 208 countries worldwide, with high-speed UMTS or HSDPA networks deployed in 50
The i-mate group of companies develops high-end smart phones based on the Microsoft Corp. Windows Mobile operating system, which are manufactured by Taiwanese design and manufacturing company High Tech Computer Corp. (HTC) and sold under the i-mate brand.
IMO:Pantech should be FAR easier for IDCC to License for 3G, than either LG or Samsung..IMO:They hold little or no Patents and have cross licensed with no one!
SEOUL, May 10, 2006: Pantech Group, the number two mobile phone manufacturer in South Korea, today announced the launch in Taiwan of the PG-6200, its new fingerprint recognition technology phone, as part of plans to expand its market share in the wider Asian region.
The two largest mobile phone vendors, Nokia Corp. (NOK) and Motorola Inc. (MOT), both increased their market shares strongly in the quarter and together accounted for 54% of all mobile phones sold worldwide in the first quarter.
Milanesi said she expects Chinese vendors such as Huawei Technologies Co. (HWI.YY), ZTE Corp.(000063.SZ) and Amoi Electronics Co Ltd. (600057.SH) to increasingly look at the 3G market, particularly for low-priced models."It's starting now and we'll see more going forward," she said. The Asia Pacific region showed strongest growth in the first quarter on the back of high volumes in China and India.Total handsets sales totaled 64.4 million units in the region for the first quarter, up 36% from thefirst quarter of 2005 with low and ultra-low tier phones were key growth drivers.Eastern Europe, the Middle East and Africa, saw sales of mobile phones to end users grow 30% over the same quarter in 2005 reaching 41.3 million units, Gartner said.Growth in this region was driven by strong new subscriber additions in countries such as Nigeria, Russia and Ukraine while countries such as Poland, South Africa and Turkey saw strong replacement sales.Japan, Western Europe and North America all saw lower than average volume growth.
Nokia: IDCC receives partial 3G royalties through Sanyo (cdma2000 - most think the Sanyo/Nokia jv will need a new license) Delaware and U.K. court cases
Founded on April 27th, 2002, COSMOBIC Technology Co., LTD is a joint venture of NEC Corporation, ranked among the world leaders in computers communications and electronic devices, Panasonic Mobile Communication Co., LTD (PMC), known worldwide for the Panasonic brand of digital communications products, and Huawei Technologies Co., LTD. one of the leading manufacturers of telephone base station and other telecom infrastructure systems in China. Acting as a distribution base and effective utilization the accomplishment of joint collaboration of NEC and PMC, COSMOBIC aims to accelerate the penetration of the Third-Generation mobile handsets and mobile internet technologies.
NEC Corporation is one of world's leading providers for broadband networking and mobile internet. Focusing on two key domains---IT- Network integrated solutions and semiconductor solutions.
Panasonic Mobile Communications Co., Ltd. is an undisputed leader in the mobile communications industry, a claim which is backed-up by our premier market share in the highly competitive Japanese mobile communications market. Panasonic Communication Industrial specializes in three business areas: mobile communications, automotive multimedia, and system solutions.
Incorporated in 1988 and headquartered in Shenzhen , China , Huawei Technologies
The move makes Panasonic the first major cell phone maker to discontinue 2G handset operations. Sales of 3G handsets are climbing fast and becoming an increasingly important part of each handset maker's global sales. However, for many companies, 2G sales still dominate. Yokohama, Japan-based Panasonic, like many Japanese companies, was late to the Global System for Mobile Communications (GSM) market, so such sales are less important for it.
Additionally, InterDigital expects to recognize the balance of the revenue related to Nokia's $253 million 
is obligated to provide InterDigital a royalty report for first quarter 2006 sales. As InterDigital has not yet received the report, the second quarter 2006 forecast does not include per unit royalties from Panasonic.
InterDigital Communications Corporation designs, develops and provides advanced wireless technologies and products that drive voice and data communications. InterDigital is a leading contributor to the global wireless standards and holds a strong portfolio of patented technologies which it licenses to manufacturers of 2G, 2.5G, 3G and 802 products worldwide. Additionally, the company offers baseband product solutions and protocol software for 3G multimode terminals and converged devices, delivering time-to-market, performance and cost benefits. The company's financial strength and solid revenue base contribute to the continued investment in innovation and development that will shape the next generation of wireless technology. For more
TOKYO -- NEC Corp. is in talks with Matsushita Electric Industrial Co.(Panasonic brand) and Texas Instruments Inc. to form a mobile-phone handset alliance.
A Matsushita spokesman said the Osaka-based electronics company and NEC have agreed to talks. A spokeswoman at the Japanese arm of Texas Instruments declined to comment.
"Through an alliance [with Matsushita and Texas Instruments], we will be able to take advantage of scale to win back domestic market share, which is necessary for us to move into the market abroad," NEC's Mr. Yano said.
US : InterDigital Communications, a leading architect, designer and provider of wireless technology and product platforms, today announced that its Frequency Division Duplex (FDD) protocol stack technology, a component of InterDigital's complete WCDMA solution, will be utilized by Infineon Technologies AG (Infineon) in solutions to be provided to Huawei Technologies (Huawei) under their recently announced partnership.
Under its joint development relationship with Infineon, begun in March 2001, InterDigital provides portions of Infineon's FDD protocol stack for wireless terminal devices. In accordance with that agreement, InterDigital would receive royalties on a per unit basis for baseband components sold by Infineon to Huawei that include the jointly developed FDD protocol stack.
Under its joint development relationship with Infineon, begun in March 2001, InterDigital provides portions of Infineon's FDD protocol stack for wireless terminal devices. In accordance with that agreement, InterDigital would receive royalties on a per unit basis for baseband components sold by Infineon to Huawei that include the jointly developed FDD protocol stack.
German chipmaker Infineon has teamed with a Chinese telcom equipment firm with the aim of bringing down the cost of third generation (3G) mobile handsets.
nfineon will be responsible for developing reference designs and software, while Huawei will provide expertise in the WCDMA network, terminal testing and interfacing between phones and systems, according to the statement from the German firm.
The real news in the releases was that the Linux smartphone reference design can run the Linux code in the same ARM9 that is doing the call processing for GSM/GPRS/EDGE/UMTS (where our contribution to the stack is)...thus removing the need to have a distinct processor to run Linux in the device...which reduces the BOM (bill of materials). Real Time Linux (RTLinux from FSMLabs) handles interupts much easier than MS or Symbian does, and can play nicer in the "sandbox" so it doesn't cause the phone portion to crash as much.
In a recent development project, FSMLabs and Infineon Technologies AG demonstrated working mobile phone prototypes based on real-time Linux. The RTLinux-powered Infineon prototype delivers what many companies have been promising—a single core handset solution, said the press release. The ARM9 core runs the WCDMA/EDGE/GPRS/GSM protocol stack developed by Comneon, a 100 percent subsidiary of Infineon, and drivers for Infineon's advanced 2G/3G radio chips in the RTCore real-time domain, and it runs the Linux platform plus smart phone utilities and graphical user interfaces in the non real-time domain. FSMLabs added that by getting rid of the extra processor allows bill of materials reductions, speeds the move towards highly integrated phone platforms, simplifies manufacturing, opens up methods of power savings, and removes performance bottlenecks imposed by the legacy serial line communication with the modem processor.
I think that HTC is a significant part of other licensee revenues. HTC licensed with IDCC in December of 2003. They have grown by leaps and bounds since licensing, as an IDCC license appears to bring good fortunes upon its licensees LOL. During HTC’s fourth quarter, which would be included in IDCC's subsequent first quarter revenues, total HTC quarterly revenues were equivalent to $862m US dollars. HTC makes smartphones and PDA phones, which are both royalty-bearing, and regular PDAs which are not royalty-bearing to IDCC.
Sony Ericy $3.9m (estimated based on 2005 average)
Sierra PCMCIA 
Posted by: sjaym
Thanks! Data rich report. Some highlights I found interesting:
We are defendants in various cases in which third parties claim infringement of their patents, including certain cases where infringement claims have been made against our customers in connection with products we have provided to them. During our first quarter of fiscal 2006, we settled the case of TANTIVY Communications, Inc. v. Lucent Technologies, which was pending in the U.S. district Court in Texas. As part of the settlement, we received a license for nine CDMA2000-related patents that were the subject of the lawsuit.
RE:
With Sharp as the #1 3G handset seller in Japan, and NEC as the leading 3G handset seller in the world, you have a new 3G handset landscape. All IDCC needs to do is double that 35% number and they've reached the 70% threshold that he speaks about.
I wonder why Merritt threw out the 75% number when their goal is to generate royalties on 100% of all 3G devices?
"Jim.
If 3G cellphones just aren’t fast enough for you, BenQ Mobile is reportedly about to release the first handset that works with Super 3G, otherwise known as HSDPA (high speed downlink packet access). This new standard speeds up downloads by using a clever combination of multiple antennas and cool coding techniques.
Posted by: dndodd
Now we are post-Nokia settlement and the messy license is done away with. The playing field is now clear and negotiations with potential licencees can be more straight forward. And we have a major war chest, that will not go unnoticed, and is only going to get bigger (Samsung). The 'street' will likely hold back and wait to see more deals with 'future recurring revenues'. As for me, I am very confident holding for the long term. Steady as she goes.
