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Notable   posts and threads related to

 

Reflections of IHub posters on the August 14th Initial Determination (ID)

Judge Finds Patents Valid and Enforceable but Not Infringed; InterDigital to Petition for Review by Full Commission

What are the prospects now for a

Nokia-InterDigital agreement on 3G licensing?

 

Posts here updated through August 16, 2009

     

 

What these "best posts" on Nokia 3G Licensing and Royalties
below are about:

These posts deal with InterDigital's progress in licensing cell phone market leader (40% share) Nokia for 3G. IThe immediate interest in the summer of 2009 is the August 14, 2009 decision of the administrative law judge for the United States ITC (International Trade Commission) as to whether to bar Nokia from importing into the United States 3G cell phones which InterDigital claims violate their patent rights.  (Nokia has already paid InterDigital about $200 million to license its 2G phones)

InterDigital Receives Notice of Initial Determination in ITC Patent Infringement Action Against Nokia

Judge Finds Patents Valid and Enforceable but Not Infringed; InterDigital to Petition for Review by Full Commission

KING OF PRUSSIA, Pa., Aug 14, 2009 (BUSINESS WIRE) -- InterDigital, Inc. (NASDAQ:IDCC) today announced that it has received notice indicating that the Chief Administrative Law Judge (ALJ) overseeing the U.S. International Trade Commission (Commission) action brought by InterDigital Communications, LLC and InterDigital Technology Corporation against Nokia Corporation and Nokia, Inc. (Nokia) has filed an initial determination (ID) finding no violation of Section 337 of the Tariff Act of 1930. While the company has not yet received the full ID, the notice indicates that the ALJ determined that the patents, while valid and enforceable, are not infringed by Nokia's 3G WCDMA handsets. InterDigital intends to submit a petition for review of the ID to the full Commission.

"We strongly disagree with the ALJ's determination with respect to infringement, and we will exercise our right to petition to the Commission for a review of the ID," said William J. Merritt, President and Chief Executive Officer of InterDigital. "As the Commission has done in a recent case involving Tessera Technologies, we would hope that the Commission will review the ID and, contrary to the ALJ's determination, find a Section 337 violation."

By rule, InterDigital has 12 days after service of the full ID to submit a petition for review to the full Commission. The Commission is expected to decide whether it will review the ID within 60 days of service of the full ID. If the Commission does not grant a review of the ID, or grants a review but finds no violation, InterDigital has 60 days to file an appeal with the U.S. Court of Appeals for the Federal Circuit. If the Commission grants a review of the ID, the Commission's final determination is expected to be issued by December 14, 2009. The Commission can affirm, modify or reverse the ALJ's decision in developing the Commission's final determination. Should the Commission review the ID and find a violation of Section 337, the ALJ recommends the issuance of a limited exclusion order barring entry into the United States of infringing Nokia 3G WCDMA handsets and components as well as the issuance of appropriate cease and desist orders.

Mr. Merritt also noted that, "While we are disappointed with the ALJ's determination, the patents asserted in this case represent a very small fraction of our total 3G portfolio. We currently hold and continue to receive patents covering inventions that we believe are essential to the 2G, 3G and emerging LTE standards. Other manufacturers, representing roughly half the 3G market, have recognized our intellectual property's strength and relevance and entered into licensing agreements with us. We, therefore, remain confident in our goal of licensing all manufacturers of 3G terminal units."

The U.S. Intl. Trade Commission

MORE:

The legal ruling (initial determination (08/14/09)

Full August 14th InterDigital Press Release

Nokia's August 14 press release

Below:

Reflections of IHub posters on the August 14th Initial Determination (ID) are below

 

The excellent IHub posts here offer information and insight into what may happen leading up to August 14th and thereafter.  This period will be intensely interesting.  Good information will significantly strengthen the hand of investors. If the sample posts here are helpful, consider regularly reading the IHub InterDigital board, moderated by Jim Lurgio. The editor of WirelessLedger.com believes that board is one of the very the best on the Internet for stock investors..

Graphics/formatting added to many posts for clarity by WirelessLedger.com

WirelessLedger's current focus stock is InterDigital Communications Corp. (IDCC). Posts and threads are culled from the most useful investment message board on the Internet (it is hosted by Investors Hub).

For a listing and links to other "best posts" topics  click here.

T

See also: Links to "best posts" on these related revenue catalysts:

 

Reflections of IHub posters on the August 14th Initial Determination (ID)

 

RE GAMCO: " Judge Luckern removed from the negotiating table both VALIDITY and ENFORCEABILITY: TRUE ...Infringement is ALL that remains for the full ITU Commission to consider"

This is false. Nokia will certainly be appealing the findings of validity and enforceability on the 4 patents.

Slacker711  8/16/09


The next round in this saga is the one that is most important. Had IDCC won the ban sill could not have issued without the affirmation of the full commission. So we are really no worse off. In fact we are in better shape because the patents are valid. No one else is gonna want to be taken to the ITC with these patents.

So, if the full commission takes up the appeal the hit will be back on both parties. IDCC with a need to move to the fed ct if they lose, but nokia with a ban if they lose. The heat is on the negotiation teams.  

-my3sons   8/16/09

 

this post by revlis is the one we should key in on.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40561337
Thanks whizzer.

I was fooled by the language of IDCC 10-K. It did not mentioned the Court of Appeal. I should have accounted for the Court of Appeal.
There is also something else for IDCC investors to keep in mind.

The ALJ decision only effected those Nokia products in the complaint. I think IDCC could take Nokia again to the ITC if Nokia introduces a new product and IDCC determines that product infringes one of the 4 patents. Judge Luckern determined that all 4 IDCC patents are valid.

Also just because the Judge determined that Nokia did not infringe, it does not mean he or another judge would come to same conclusion for another manufacturer products.
i.e. I think if IDCC files another complaint, IDCC will make sure that the product uses a half rate convolutional encoder.

NOK got lucky by convincing the judge that they don't use that method in their phones. The judge made the statement that the patents are valid and enforceable. that statement has made it difficult for any of our current licensees to claim the same thing that NOK got away with here. We will be ready for that claim specifically if it is put out there by another company. I think the judge took the easy way out on this by splitting the baby. whether he did it to punish both sides for not meeting his 8-7 deadline for a settlement or he just is a split the baby kind of guy. I personally think any judge who splits the baby is not doing his job. He is paid to make the hard decisions.
also, this is exactly why ther was a marksman added to any technical cases. Marksman was put in to place as a result of IDCC vs MOT. Will we now get a Marksman in ITC cases following IDCC vs NOK? I don't like being the guinea pig.

  mo   -habu 8/16/09

 

It is a beautiful Sunday so I don't plan to post much today. I know a lot of folks who I consider to be kindred spirits (from over a decade ago) are probably not feeling too well today. One thing to think about is that all we have to do is win on one of 16 claims before the full Commission to obtain a ban on Nokia's products. Although Nokia may be enjoying the ALJ ruling, it ultimately comes down to the Commission as far as a ban. And this is not just on a couple of claims, there are 16 of them to review. Also, the ALJ found "In the event a violation of section 337 is found, the evidence shows that the appropriate remedy barring entry of infringing 3G mobile handsets and components thereof are a limited exclusion order, and cease and desist orders." Thus, there is the clear risk of a ban to Nokia in the event IDCC wins on just one of the claims.

-whizzeresq  8/16/09

 

whizzer,
This is how I see it.

The commission first has to decide whether to review the decision. That will be done by Oct. 14. If the commssion decides to review the decision then Nokia will be on the hot seat again. On Dec 14, the commission has to decide on only one of the 16 claims and the ban will go into effect 60 days after the presidential review after the Commission decision on Dec.14 . If the commission does not decide to review then IDCC can go to the Court of Appeals. I think IDCC then can also request to lift the stay in the mirror infringement case and the Lanham case in Delaware. That is what I meant by all out war.

mo

By rule, InterDigital has 12 days after service of the full ID to submit a petition for review to the full Commission. The Commission is expected to decide whether it will review the ID within 60 days of service of the full ID. If the Commission does not grant a review of the ID, or grants a review but finds no violation, InterDigital has 60 days to file an appeal with the U.S. Court of Appeals for the Federal Circuit. If the Commission grants a review of the ID, the Commission’s final determination is expected to be issued by December 14, 2009. The Commission can affirm, modify or reverse the ALJ’s decision in developing the Commission’s final determination. Should the Commission review the ID and find a violation of Section 337, the ALJ recommends the issuance of a limited exclusion order barring entry into the United States of infringing Nokia 3G WCDMA handsets and components as well as the issuance of appropriate cease and desist orders.

-revlis  08/16/09

Nicmar the fact that the ALJ recommended a ban if the Commission were to find in favor of IDCC does mean something. It means that he didn't buy any arguments that a ban should not issue even if Nokia infringed. Given the way things have gone in the past with strange decisions (like Lynne and Batts) at least we have a recommendation by him for a ban if the Commission finds for IDCC on at least one claim. IMHO

-whizzeresq  8/16/09

 

dndodd,
I usually do not like to question the motives or thinking of people like Judge Luckern whom I have great respect for but I will do so in this case.

I just wonder if Judge luckern did not bend over backwards for Nokia since he could be accused of prejudice. I am sure if the decision went against Nokia, one of the major complaints of Nokia would have been that the judge was bias against NoKia. I sense that throughout the hearing. He even mentioned a few times that this was a new beginning and that whatever was in the past would remain in the past. I just wonder if he took that mentaity too far.

m   -revlis  8/16/09

You're kidding yourself, Revlis. Rationalizing.Don't blame Judge Luckern for your mistaken "belief" that IDCC couldn't/wouldn't lose. Since you're not an expert in patents, nor in litigating patent claims, and the pithy parts of the evidence were hidden from public scrutiny, how can you say what a neutral and detached ALJ would conclude, based upon the record? IDCC lost a bench trial. While not the end of the case or the world, unless they can sign Nokia in a hurry, future licensing and revenues are uncertain. The market hates uncertainty, as tomorrow will make painfully clear. But don't cry corruption, ulterior motives, nor ineptitude. One party loses in every trial, and this time it was InterDigital.That is what's meant by "litigation risk".

-JeffreyHF  8/16/09

 

Statistics on Commission and/or Federal Circuit reversals of ALJ decisions

I previously posted the results of a study concerning reversals of ALJ decisions by the Commission and/or the Federal Circuit. This study concluded that while reversals occurred there was a strong likelihood that the ALJ’s initial determination will be affirmed. I have found a more recent study that concentrated on the ALJs claims construction findings. This study, while also indicating that the odds still favor the ALJ being upheld, came up with better reversal rates (ALJ’d decision being reversed, or vacated and remanded) than the previous study. Below is the data from my previous post, and my summary of the statistics from the new study.

Abstract from previous post (#208220)

A fast outcome without reasonable certainty in the outcome is not particularly valuable.  However, the record for affirming an ALJ’s Initial Determination before the Commission and on appeal to the Federal Circuit is generally better than for the District Courts.  Since 1974, out of 200 ITC Investigations, there were only 12 investigations (6%) where the ALJ was entirely reversed by the Commission.  In the rest the ALJ’s Initial Determination was either affirmed without review (32 investigations), affirmed after review with modifications or partial reversals that did not alter the outcome (69 investigations); or adopted where the Initial Determination was no longer contested on appeal (87 investigations), such as consent orders, settlements, complaint withdrawn after Initial Determination (“ID”) and ID vacated for mootness. 
            On appeal to the Federal Circuit, the Commission’s Final Determination is also generally upheld.  Again, since 1974, of 79 investigations that have been appealed to the Federal Circuit, only 13 (16.4%) were entirely reversed.  The majority were affirmed in the entirety (51 investigations), and some were modified but affirmed without altering the outcome (15 investigations). Thus, there is a very strong likelihood that the ALJ’s Initial Determination will become the Final Determination and that Final Determination will be affirmed if appealed to the Federal Circuit.  By contrast, only 60 - 65% of District Court claim constructions are sustained on appeal at the Federal Circuit. 

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=27267521

Summary of new study

This was a study about the reversal of ITC determinations made in regard to claims construction. The study was based on a review of Federal Circuit case decisions issued between April 24, 1996 (date of Markman decision) and June 30, 2008.

1. During the study period, 29 decisions were issued by the Federal Circuit relevant to claim construction. Nine (9), or 31% were reversed (Table II).

2. In analyzing reversals based on the ALJs’ length of service at the ITC, Judge Luckern was included in a group of judges with 10+ years of service. For this group, 22 cases were covered, of which six (6), or 27%, were reversed. (table III)

3. In regard to ITC Commission reviews, recently they have taken a much more active role in reversing i.e altering, the AlJs’ claim construction determinations (table IV):

1996-2000...12 claim constructions reviewed...2 (17%) altered
2001-2004...22 claim constructions reviewed...3 (14%) altered
2005-2007...28 claim constructions reviewed..12(43%) altered

4. In 19 cases where the Commission did not review or change the ALJs’ determination, the Federal Circuit reversed 5 (26%). In 10 cases where the Commission did change the ALJs’ determinations, four(4), or 40%, were reversed by the Federal Circuit. (table V).

The study is available for download at:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1270428

-olddog967 8/15/09

 

O D: great post! I was particularly interested in the 2005-2007 43% altered claim constructions in ITC commision reviews. This almost puts us back to square 1.

-ziploc 1   8/15/09

o say that Nokia did not infringe on a patent does not mean that it is not essential or even that Nokia does not use the patent. You are confusing technology with law. For example, if the patent was developed under the TDD contract, it could valid and essential but Nokia does not infringe because they already have a license to use it.

Quartzman0  8/15/09

So......if the Commission indeed reverses the ALJ decision, will Nok then appeal that reversal, and then this whole issue goes to the Fed Circuit Court? If so, we're well into the year 2010 for final resolution?

-ciciagt 8/15/09

 

Ciciagt: We were going to have to wait anyway, even if Idcc won on the preliminary determination.

--ziploc 1`  8/15/09

 

Nokia's press release
United - U.S. International Trade Commission rules in favor of Nokia
15.08.2009 | 00:53 Uhr

New York, NY, USA - Nokia announced today that a United States International Trade Commission (ITC) judge issued an Initial Determination in favour of Nokia in the action brought by InterDigital against Nokia. The case, filed by InterDigital, alleged that Nokia infringed four patents that InterDigital asserts to be essential for the UMTS (3G) mobile standard. The judge found that there is no infringement of the four alleged patents and therefore, Nokia is not in violation of section 337 of the Tariff Act.

The judge's Initial Determination, issued on August 14, 2009, is consistent with a previous judgment in the United Kingdom that found several InterDigital patents not to be essential to the UMTS mobile standard.

"As a leading innovator Nokia respects valid and used IPR and expects others to do the same", said Ilkka Rahnasto, vice president, Nokia Legal and Intellectual Property. "We are willing to compensate other contributors with what is fair and reasonable for such IPR, however in the case of unrealistic and unwarranted demands, we are prepared to ensure through litigation that our rights are protected. We believe this initial determination by the ITC combined with earlier UK court decisions provide a strong indication that the asserted value of InterDigital's 3G patent portfolio may have been over-estimated."

The judge's Initial Determination will now be forwarded to the full Commission for review. The Commission is scheduled to make its Final Determination by around December 14, 2009. Ahead of the Final Determination, Nokia will continue to present its case to the ITC.
-enyaw 8/14/09

 

Interesting release from Nokia. Note that they do not say that IDCC's 3G patent portfolio is worthless, they simply say that "We believe this initial determination by the ITC combined with earlier UK court decisions provide a strong indication that the asserted value of InterDigital's 3G patent portfolio may have been over-estimated."

Does this imply that the outcome of this case could still result in a settlement, but something more along the lines of what NOK offered rather than on the high side of what IDCC was asking?

It could be that IDCC and NOK had agreed that some patents were essential but there were some that were in dispute. Now that this result is in, maybe IDCC needs to re-evaluate their demands.

-infinite q  8/14/09

Infinite,
Nokia knows that it will have to deal with IDCC in one way or another in the future.
I think Nokia wants to settle but does IDCC? Will IDCC want to go to the Commission before settling? We will see.

mo revlis   8/14/09

Ziploc, you may be onto something here.
It may be possible that IDCC's patents are valid, enforceable, that they are being used in Nokia's handsets, they intersect the claims constructions but, due to some technicality, do not infringe - hence no violation.

Possible technicalities:
- Implied license
- Re-interpretation of previous agreements
- Flow-through from joint TDD work
- Nokia's refused rate offers

Maybe somebody can think of other possibilities. Time will tell.

MO littleinvestor  8/14/09

 

What are the prospects for a

Nokia-InterDigital agreement on 3G licensing?


(generally most recent are first below)

 

Posted by: loophole73

Date: Wednesday, August 12, 2009
In reply to: None

Post # 266066

Mickey

First and foremost I am not a patent lawyer and not qualified to opine on patent validity and claims construction. Second, I believe that IDCC is more than capable of tearing down any phone and accurately identifying the various components and the technology contained therein. Third, IDCC worked with Nok for three years coordinating FDD and developing TDD to work in the W-CDMA system which was in the process of standardization at the time. Fourth, IDCC also had Dr. Schilling and other excellent engineers developing and patenting CDMA technology. Fifth, IDCC has successfully developed design winning 3g technology at the chip level further demonstrating the ability of its engineers to identify, coordinate and provide the technology contained in a 3g system. Sixth, the USPO issued the 4 patents involved in the ITC investigation. Seventh, these patents and the claims within are presumed valid. Eighth, Nok must prove invalidity via clear and convincing evidence, a mere preponderance fails to meet its burden. Ninth, IDCC has built and demonstrated systems at the 2, 2.5, 2.75, 3 and 3.5g levels dispelling the myth that the company is some patent troll that has gained its IPR via purchase or some other means than its own creation and invention. Tenth, Nok certainly believed up until April 26, 2006, that it needed a license to avoid infringement of IDCC IPR for its products containing 2 and 3g technology. Eleventh, Nok was so impressed with the heretofore inventions of IDCC that they initiated and consumated a strategic partnership for the development of 3g TDD technology. Twelveth, IDCC has successfully prosecuted patents worldwide for three decades. Finally, thirteenth, IDCC has 50% of the production by 3g manufacturers under license with the lion's share of the remaining 50% being comprised of the original conspirators known as MEN whose purpose for the last 24 years has been to put the company out of business.

Based on the above, I believe the picture has been painted for a trier of law and fact to conclude that the Nok products intersect the claims contained in the four patents involved in the investigation. Further, it is my unqualified opinion that Nok has not met its burden of proof under the clear and convincing standard to overcome the presumption of validity conferred upon the 4 patents at the time of issuance by the USPO. It is my unqualified opinion that IDCC can and should win the issuance of a ban of the Nok products identified in the investigation by the ITC. It is my unqualified opinion that the past behavior of Nok not only validates, but mandates that said ban should be issued and not be subject to stay requests by Nok should it appeal.

You asked for it Mick and I have given it to you. Please remember that my opinions are unqualified because patent law is a specialty and as a result not worth much at this stage of the game. Courts and triers of fact and law have found that the challenger to validity have met the burden of proof on many occasions. Good luck to us all.

MO
loop

 


Posted by: bim524

Date: Wednesday, July 22, 2009 10:56:40 AM
In reply to: None  

Post #263424 of 263432

Repost from (InterDigital vs Nokia ITC) transcript... kicking the nok lawyer's Ass.


I'm similar to judge luckern... tired of hearing from them.

MR. BRINKMAN: Yes, Your Honor, we agree the deposition excerpt will come in. We don't agree that the exhibit shown at the deposition shown at thedeposition should come in, and let me show you why.In this exhibit CX-1370, the question was asked about this CX-1370 to the deponent, let me show you this  document, do you recognize it? And here is his response at page 119, "1 don't recognize this." And then the next question was, "Okay, --

JUDGE LUCKERN: I understand what you're saying, but we spent about ten minutes maybe an hour ago talking about what weight with respect to
objections made and rebuttal findings and attacking proposed findings e t cetera with i l l u s t r a t i o n s and t h i s and that and a l l that. Maybe you weren't here, I
don't know, maybe you turned yourself off and you didn't hear what was j u s t said about an hour ago.

And we probably spent about 15, 20 minutes on that point so it would be a l l clear. Now you're t e l l i n g me, oh no, don't do it. So you're not making any sense t o me. You'd better shape up as f a r as next week. If you make these type of arguments next week,
Well, need I say anymore. So how do you reconcile what you're t e l l i n g me right now as t o how you people have argued about an hour ago with respect t o weight
e t cetera with respect t o depositions and questions asked a t depositions?

MR. BRINKMAN: Your Honor, I disagree with the position that was talked about an hour ago and I disagree now. I don't think --

JUDGE LUCKERN: Well I ' m glad you brought it t o the record now. So does that mean, are you speaking a l l of Nokia? 1'11 go back t o t h i s record.
I ' d like to know who's speaking for Nokia. Now you disagree. You didn't say much before.

MR. BRINKMAN: Yes we did, Your Honor.

JUDGE LUCKERN: I don't have real time here, I have the transcript here, I w i l l read it. But my recollection is there was some sort of an agreement as
t o where we were going before. Now I ' m hearing from Nokia that they hadnl t agreed. Where we go, I' 11 read t h e t r a n s c r i p t .

MR. BRINKMAN: Your Honor, i f I may just make our point here. And our point is simply that i f a document is used a t a deposition, that does not make
the document admissible a t the evidentiary hearing for the substance of the document.

JUDGE LUCKERN: T understand t h a t . I don't want t o hear anymore. You've had your t a l k . I don't want t o hear from that point anymore.


Posted by: loophole73

Date: Wednesday, July 22, 2009
In reply to: None Post #263412 of 263423


Follow the bouncing ball

IDCC and Nok have had several settlement sessions and the terms are very complicated. When lawyers make these representations to the court, the odds of reaching a final agreement are very good. Many of you are making statements about management deficiency because it has not been accomplished. You are simply wrong. Nok has entered into several agreements in the past with IDCC and they are batting a 1000in trickery and IMO bad faith in each one. Nok is big enough and bad enough to insist on MFL clauses. Further, if IDCC is trying to land

Nok as its poster licensee for LTE, we must remember the 1999 joint development agreement and the rate triggers. It is tough knowing that the other party is the king wiggler in the sector. Do you agree to terms that allow for wiggle room in order to advance your business plan earlier or do you hold tight and litigate now because the wiggler's past conduct leads you to a conclusion that you will have to litigate with this company over any agreement that is reached anyway? Complicated is too nice of a term when dealing with Nok. Just be patient  and let this play out. The prior art issue is frustrating, but also carries a huge burden in proving that the publication contains literally all of the claims made by the patentee. It is my belief that the declaration worries were withdrawn at the pre-trial hearing on the following Tuesday after the conference call.

MO
loop

 

Posted by: nicmar

Date: Wednesday, July 22, 2009 6:40:10 AM
In reply to: Ghors who wrote msg# 263400 Post #263400

Good posts ghors and whiz. "You're using my patents and you got to pay. Slam dunk." A good reminder before going off to celebrate that nothings is as simple as it seems and there is always a risk if idcc and nok goes to decision. Hopefully, neither nokia or idcc will take the risk. imo. .. nic

Posted by: Ghors

Date: Tuesday, July 21, 2009 11:24:14 PM
In reply to: whizzeresq who wrote msg# 263346

Post #263400 of

Whiz: Exactly. Everyone on the board must understand that just because NOK dropped the FRAND defense does not mean they can't pursue inequitable conduct as a defense. It's a separate defense same as validity or infringement. A loss on inequitable conduct is a loss of the case.

I also follow RMBS and they have been in litigation for 10 years in multiple courts trying to defend their alleged failure to advise an ETSI type standards body (JEDEC) that they might have essential patents to the standard RMBS was pushing. I understand they have spent 300 million on attorneys' fees and it's still not over yet.

IMO ghors

 

Posted by: whizzeresq

Date: Tuesday, July 21, 2009
In reply to: revlis who wrote msg# 263336

Post #263346 of

Revlis--I believe that Nokia "borrowed" that defense from the Qcom/Broadcom litigation. The defense is essentially an estoppel defense. The gist of it goes that a patent holder that participates in a standards group has an obligation to timely declare all essential patents to the group before the standard is adopted. If such a patent holder fails to disclose such patents until after the standard is adopted (or perhaps too late in the game), the patent holder should be estopped from relying on the patent.

The theory goes along the lines that the patent holder engaged in inequitable conduct by not alerting the members of the standards bodies as to the applicable essential patents as soon as possible, presumably so that the members could not have the opportunity to design the standard around the patents so that the patents would no longer be essential. IMHO

 

Posted by: nicmar

Date: Tuesday, July 21, 2009 1:43:21 PM
In reply to: moonlanding who wrote msg# 263307

Post #263330

moonlanding.. I'm guessing no one wants to answer you because you're brand new with only 1 post and if you've been following this board for awhile you already know it's a pretty close knit group with suspicions as to the other guy's agenda and intent. That being the case, no one's sure about you.

Anyway, opinions, I think are all over the board with what's going to happen with the share price and one opinion is about as worthless as the next, so with that in mind here's my very unprofessional opinion that some may agree with and many others will not.I personally don't feel 1 cent of the nokia settlement is factored in the share price, primarilly because idcc has been fighting nokia for years and to date have settled on 2G, but have never a dime received from 3G since nokia has fought tooth and toenail for years.

However, most feel a settlement is imminent before August 14th of which I concur. Finally.

I'm figuring idcc up 4 bucks on the earnings release in only a few days to hopefully around 31 to 32. Depending on the settlement, if it's a sammy type settlement, I'm figuring close to 40. After an agreement, I believe idcc has the ability to grow on earnings the following 12 months with the additional earnings from nokia to 50 or 60 as each quarters earnings are announced.

If Idcc gets nokia and other companies follow, then I feel I'm low on my estimates. Keep this in mind. I've been way off on my expectations of idcc for years as I remember we were at this price before the baby qualcom run. Guess its your bet if you think idcc will finally come in. I'm never surprised with this one.

mo. .. nic

 

Posted by: dndodd Date:

Tuesday, July 21, 2009 1:27:50 PM
In reply to: moonlanding who wrote msg# 263307

Post #263330 of

IMO
How much of a potential Nokia settlement is factored into the current price?.

ZERO

What is the likely range the share will trade if the settlement is similar to the Samsung settlement?

35 and up.

 

Posted by: moonlanding

Date: Tuesday, July 21, 2009
In reply to: None

Post #263307 of 263396


Been looking at making an investment for some time.How much of a potential Nokia settlement is factored into the current price.

What is the likely range the share will trade if the settlement is similar to the Samsung settlement.

Posted by: badgerkid

Date: Tuesday, July 21, 2009
In reply to: sjratty who wrote msg# 263285

Post #263302

Date certain for the ITC is August 14th, but an anticipated date for a possible settlement decision of August 7th is out there. Even if

Judge Luckern wants a tentative decision by the parties on or before August 7th, we may still be in the dark for a few additional days.I'm guessing that it will be an absolute pressure cooker around here for a few days in August.

Good luck to the longs.

IMO

Posted by: sjratty

Date: Tuesday, July 21, 2009
In reply to: None

Post #263285


What day did the ALJ ask the parties to report a settlement by?

Thanks

Posted by: Data_Rox

Date: Monday, July 20, 2009
In reply to: None

Post #263277

semi on topic regarding Nokia last minute negotiations

SEC charges former Qualcomm official with insider trading
Monday, July 20, 2009

The SEC filed a federal insider trading action Monday against a former director of strategic marketing analysis at San Diego-based Qualcomm Inc. (Nasdaq: QCOM).
The complaint alleges Andres Leyva realized more than $34,000 in illegal profits by trading on the basis of confidential information about Qualcomm’s new licensing agreement with Nokia Corp. (NYSE: NOK) and the settlement of all litigation between the companies.

According to the SEC’s complaint, Qualcomm and Nokia were set to begin trial on July 23, 2008, in a key Delaware case to determine whether Nokia owed Qualcomm substantial royalty revenues when the companies’ licensing agreement expired in April 2007.

The complaint alleges that on July 22, 2008, at approximately 7:30 a.m. (PT), the senior Qualcomm executive leading negotiations with Nokia representatives in Delaware informed Leyva that Nokia had surprised Qualcomm with a significant settlement offer. The executive conveyed the key terms of that offer to Leyva, according
to the complaint, including Nokia’s proposal to increase an upfront payment to Qualcomm from $500 million to $2.5 billion.

Approximately two hours later, the complaint alleges, Leyva purchased 80 Qualcomm call option contracts priced at 39 cents each with a strike price of $50.

After the market closed on July 23, 2008, Qualcomm and Nokia announced their new licensing agreement and a global settlement of all litigation between them. On July 24, 2008, Qualcomm’s stock price increased 17 percent to $52.43, and its trading volume increased 394 percent. That same day, the complaint alleges, Leyva sold the 80 Qualcomm call option contracts for a profit of $34,739.98.

The SEC’s complaint charges Leyva with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 there under. The SEC seeks a permanent injunction, disgorgement of Leyva’s illegal trading profits, and civil penalties.

Posted by: badgerkid

Date: Monday, July 20, 2009
In reply to: Eric who wrote msg# 263244

Post #263247

Eric, a ban for Nokia brings a big public relations risk that the company cannot afford at this time. If Nokia's phones are banned, they lose all momentum towards growing this market. Furthermore, U.S. companies that carry their phones for global sales may cancel orders for overseas markets as well.

The ban would be in the U.S., but other markets could easily be affected as well based on individual carriers thinking.

Nokia wants to settle.

IMO

 

Posted by: Eric

Date: Monday, July 20, 2009 2:28:02 PM
In reply to: Bill Dalglish who wrote msg# 263239

Post #263244

Nokia's US Risk Stake ...

Hi Bill,

<< Eric: Would an ITC victory forbid imports of all 3G Nokia phones? or just smartphones? or something else? >>

I wouldn't think all smartphones, although in reality, most if not all their small share of US smartphones are 3G (WCDMA WEDGE and/orHEDGE). I don't think InterDigital is alleging any IP infringement relative to characteristics peculiar to a smartphone. It is not clear to me whether or not it would be all their 3GSM UMTS (WCDMA and/or HEDGE) mobile devices, but it could be all, depending on what they are allegedly infringing. There is certainly major risk since their US CDMA share (no smartphones) is even punier than their relatively small (~8%) overall share. Make no mistake about it, Nokia's potential risk is big, given the resources Nokia has devoted to regaining share in the US.

Best,

- Eric -

Posted by: Bill Dalglish

Date: Monday, July 20, 2009
In reply to: Eric who wrote msg# 263215

Post #263239

Eric: Would an ITC victory forbid imports of all 3G Nokia phones? or just smartphones? or something else?

RE: Your response today to Mickey

2G & 3G Smartphones

<< If these numbers for 2008 are accurate on 3G sales or is this just for what is called smart phones? >>

Just for smartphones -- both 3G and 2.5G. Most of Nokia's were 3GSM but not all. Most of RIM's were 2.5G but this year will be mostly 3G. Most of Apple's were 3G but all of the 1st half of 2008's were 2.5G. This year iPhones will be all 3G.

 

<< What is the difference between 3G sales and smart phones? >>

A 2G or 3G smartphone is a mobile voice phone with a high level operating system (HLOS) architecturally similar to a computers, supporting applications programming interfaces (APIs) and reasonably sophisticated data native and/or 3rd party applications. Smartphones were in play well before 3G access technologies were. My 1st one had a 16-bit HLOS (Palm's) running on IS-95 cdmaOne access technoloogy with 14.4 kbps peak data rates, but all today are 32-bit.

A mobile phones access technology (WCDMA, WCDMA with the HSPA extensions, cdma2000 1xRTT in InterDigitalspeak, CDMA2000 1xEV-DO, as well as today's WiMax, & initial LTE which are also 4G candidates) determines if a phone is 3G.

<< If the 60 million sales by Nokia in 2008 is indictive of total 3G sales then the amount IDCC is collecting from Samsung is a far cry
from .35 cents a unit. >>

It is not indicative of Nokia's total 3G sales, and neither are total smartphone sales for 2008 or H1 2009 indicative of them.

In 2008 ~40% ± a few ppt. of total phone sales were 3G. Slightly higher if one counts 1xRTT as 3G which InterDigital does but the industry doesn't even though it is an ITU IMY-2000 sanctioned 3G technology (as is 2.5G EDGE which is also considered 2G by the industry).

Nokia just gave their view of Q2'09 and H1 sales by access technology and that view has WCDMA/CDMA phones shipped in H1 as 37% of total sell-in in H1'09 (195 million of 523 million) ...

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39671219

All of the WCDMA phones are 3G. Most of the CDMA phones are but not all. In addition to the 1xEV-DO & 1xRTT CDMA phones in the mix there are likely a small quantity of 2G cmaOne IS-95/A-B phones in that mix. Overall, their CDMA number looks low to me, however.

<< What is Samsungs 3G sales in 2008? >>

Dunno.

<< What is Samsungs current sales of 3G products in 2009. >>

Dunno.

<< I think and I am sure I am wrong but I think the rate is more than .35 cents. >.

Can't help ya on that one.

- Eric -

AND


This is A small portion of your detailed and very comprehensive post no.253559 last March dealing with 3G and Smartphone sales and other topics Informa predicts that while total new handset sales will fall 10.1 per cent year on year through 2009, sales of smartphones are expected to grow 35.3 per cent.

By 2013, smartphone penetration is forecast to treble to just over 38 per cent, accounting for almost four in ten of all handsets sold worldwide. In 2009, smartphones are expected to account for around 13.5 percent of all new handsets sold worldwide. ###

>> Juniper is slightly less bullish on smartphones, predicting that smartphones will account for 23 percent of handsets sold in 2013, driven by the proliferation of online stores selling specialised applications that will make the gadgets more useful to individual people it says in a report. Juniper predicts that 300 million smartphones will be sold in 2013, and that the segment will weather the economic downturn better than other handset segments as people think "they will be getting more for their money by buying high-end devices". Handset vendors will see the margins on handsets fall and will need to diversify into service provision with high-value content according to Juniper?something that most of them are already doing, led by Nokia. ###


Posted by: dws

Date: Thursday, July 16, 2009
In reply to: Gamco who wrote msg# 263058

Post #263059

It's obvious that Nokia has significant leverage with the print and electronic media as a result of their ad spending. Is it too much to ask to have a researching journalist bring outstanding litigation and its potential effects to the surface?

The wires are abuzz with NOK prognostications, let's have them all.

We know that Forbes will not lead the charge....

 

Posted by: Gamco

Date: Thursday, July 16, 2009 4:31:34 PM
In reply to: None

Post #263058

Nokia talks shop about its revised US strategy, but is it enough?
by Chris Ziegler, posted Jul 16th 2009 at 4:13PM

 

(l) Nokia smartphone

The old adage goes "be careful what you wish for; you just might get it." After years of bellyaching (we're as guilty of it as anyone) that Nokia was giving Europe first dibs on its hottest handsets over North America, we're now seeing perhaps the most dramatic, positive shift in North American strategy in the company's history -- in fact, they're straight-up saying that they want to push all the way to number 1 in the local market. But is it enough of a shift to fend off aggressive moves from Samsung, LG, Apple, and the rest of the gang across every conceivable market segment?

Nokia's product portfolio manager for the region, Ira Frimere, sat down with Computerworld recently to discuss the renewed push, admitting that the company has had to rethink some fundamental things about its products and its business model to help its cause in the States; one small example is the fact that the Surge is launching without the typical four-digit model number or Nseries / Eseries code that is found on virtually every Nokia sold worldwide, ostensibly because Americans apparently prefer names to numbers (it'll launch as the Surge 6790 internationally, it turns out).

Additionally, the company has dedicated a facility in San Diego to working with its North American carrier partners -- AT&T and Verizon, most prominently. It's still early on, but the labor there seems to already be bearing fruit, considering that AT&T will be stocking three S60 devices once the Surge launches -- a record --and Verizon's rumored to have some interesting stuff in the pipeline.

Frimere adds that Nokia believes services are key to winning American hearts and minds, an area the company has been putting extensive R&D into lately with its Ovi line (unfortunately, so is everyone else -- and getting to iTunes and App Store-level acceptance with Nokia Music and the Ovi Store is going to be an uphill battle, to say the least). Ultimately, the conclusion seems to be Nokia's reluctant admittance that breaking into the US market requires a willingness to give carriers far, far more respect than they deserve by bending and breaking to their somewhat odd demands -- and that's going to be an ongoing problem for consumers, whether you're a Nokia fan or not.

http://www.engadget.com/2009/07/16/nokia-talks-shop-about-its-revised-us-strategy-but-is-it-enough/

Gamco


Posted by: badgerkid

Date: Wednesday, July 08, 2009
In reply to: my3sons87 who wrote msg# 262254

Post #262255


My3, we will see a settlement with Nokia and Interdigital occurring before the ALJ issues his ID. For all practical purposes, anything else demonstrates extremely foolish business practices on both sides. I also expect earnings to surprise just a bit. Hopefully the market will decide to give us a little shove to the upside as well.

Forgive me once again for pumping.

IMO of course.

 

Posted by: my3sons87

Date: Wednesday, July 08, 2009
In reply to: None

Post #262254


In 37 days the ALJ will issue his ID, if case is not settled. For whom will the bell toll if case is not settled. Will taps be in order for one of the parties.

Posted by: dmiller

Date: Wednesday, July 08, 2009
In reply to: my3sons87 who wrote msg# 262246

Post #262249

Yes they can if they set up an automatic plan to purchase the shares.

 

Posted by: Data_Rox

Date: Wednesday, July 08, 2009
In reply to: my3sons87 who wrote msg# 262246

Post #262248

m3s

Jiff, if IDCC is in settlement discussions with Nokia, I don't think they can be buying up the shares. But I could be wrong. Or it could be they are not buying until they get a settlement or positive decision. But to me this would also be wrong, as they would then be acting on inside information in not trading in the stock.

Can a company not buy their stock if they expect negative news when they have announced a share buyback plan. The other side of that coin is, can a company buyback their shares when they anticipate imminent good news.they have been in settlement discussions for years, including substantial progress"....and have been buying back all the while. they have been in settlement discussions for years, including "substantial progress"....and have been buying back all the while.

Yes, they can buy while in discussions/negotiations, as it has been made very public

Posted by: rmarchma

Date: Saturday, July 04, 2009
In reply to: gatticaa who wrote msg# 261852

Post #261863

gatticaa re Carpenter's estimates for Nokia

Carpenter is projecting a Nokia deal using the Samsung agreement as a "framework". The 3G portion of the Samsung agreement is NOT paid-up after the end of the initial four-year license term, although 2G will be paid-up. Therefore, the 3G portion will have to be renewed upon the expiration of the initial 3G license agreement.

Since Carpenter mentions nothing about 3G being paid-up for Nokia, I assume he thinks the Nokia 3G license would have to be renewed at the end of the initial term, just like Samsung.Carpenter's table for Nokia royalty projections is based on different per-unit royalty assumptions ranging from 35 cents per unit to $1 per unit multiplied times the projected number of 3G handsets expected to be sold by Nokia each year. Carpenter opined that he thought the Nokia royalty rate would be between 35 cents to 50 cents per unit. BTW Carpenter expects Sony Ericy to sign a 3G agreement with IDCC once the Nokia 3G agreement is finalized as follows:

...."Given healthy dialogue (and no legal actions between the firms over the past five years), we believe InterDigital and Sony Ericsson will sign a 3G agreement soon after InterDigital and Nokia finalize an agreement."


Posted by: olddog967

Date: Thursday, July 02, 2009
In reply to: rmarchma who wrote msg# 261774

Post #261779

ron: The problem is that if the ALJ rules that there is a violation and Nokia waits until an actual ban is issued before agreeing to a settlement, any carrier(s) that may be involved with Nokia's phones would be hesitant to finalize a deal. With a fast changing market, and a large number of competing models available, I imagine they would be pressuring Nokia to settle.

 

Posted by: rmarchma

Date: Thursday, July 02, 2009
In reply to: dclarke who wrote msg# 261772

Post #261774


Dclarke re Nokia risking a ban you asked:..."So I am thinking that if Nokia gets a ban their negotiating postition falls off a cliff. At this point, time is on IDCC's side.

Do you think Nokia will risk this?

First I agree with you that IDCC's best venue is through the ITC, rather than the courts, to keep from getting tied up in endless appeal delays. However I still think that Nokia might go all the way to an ALJ decision, just to see the final hold card. If the ALJ decision goes against Nokia, they still can await the ITC final decision. If the final ITC ruling goes against Nokia, they can still appeal to the President.

However if an ITC ruling were to go against Nokia, they could still settle at that point with IDCC to avoid an import ban. Some would say that it would cost Nokia a lot more to settle at that point than earlier, but I'm not so sure that it would cost them significantly more. I think that IDCC might be so willing to get the 3G issue with Nokia resolved, that they might acquiesce to their pre-ruling acceptable royalty amount. Remember that IDCC did acquiesce with Nokia in 2G, when they had them over a legal barrel, just to get 2G resolved. Of course, all of this speculation is just merely my opinion.

 

Posted by: lastchoice

Date: Monday, June 15, 2009
In reply to: Data_Rox who wrote msg# 260426

Post #260432


if the deal included nok's use of an idcc MIH client that would be great. as we've discussed, the ASP of the client could be more than the royalty, and may be similar to a price synergy with aapl/ifx and the protocol stack. the total $$$ are all that really matters.

Posted by: Data_Rox

Date: Monday, June 15, 2009
In reply to: GAB who wrote msg# 260400

Post #260426


GAB - good to hear from you

Data...What do you think will be the best case and worse case scenarios ,if any. of Aug ALJ desisionsthere are many different ways this could play out. Neither company really wants a decision rendered by outsiders. My best case is settlement 1st week of August that combines an effective 3G rate of ~.50 per unit with a technology agreement that takes MIH from the IEEE and firmly places it into 3GPP with Nokia / Nokia Siemens as sponsor/adopters. Worst case is that this drags into Delaware, where a greater portion of the patent portfolio is put at risk....and delays reward to us shareholders.

I'm buying with the thinking that it will be closer to the better case.

R

Posted by: rmarchma

Date: Friday, May 29, 2009
In reply to: JeffreyHF who wrote msg# 259275

Post #259278

JeffreyHF re no infringement or no violation you said:

....."And, it's hard to spin the staff attorney's position concluding "no infringement" as anything but negative for IDCC, even though the ALJ is free to disregard it."

The staff attorney did not rule "no infringement", rather he ruled "no Violation". At one time earlier in the Samsung ITC procedings, I thought that no violation and no infringement were one and the same.

However, it was pointed out to me that they are not the same.

Evidently in the Samsung case, the staff agreed with Samsung's contentions of legal estoppel and frand, and therefore ruled no violation. These particular defenses had nothing to do with whether or not Samsung's 3G WCDMA handsets were infringing IDCC's patents.

It appears that one of Nokia's defense ploys is to try and obtain a no violation ruling due to patent invalidity through prior art, rather than noninfringement.

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