"Interdigital" article here -- comments anyone?
"Interdigital soars after wireless patent claim"
(by Adam Peeler, source: smallcapcenter.com)
November 19, 1999 - A Pennsylvania-based wireless developer is tearing up Wall Street today after the company announced it believes much of the recently-defined third generation wireless standard is based on its proprietary technology.
Interdigital Communications Corporation (ASE: IDC) has jumped more than 40% to $8.43 today on a volume of 3.7 million shares while company officials sit back and enjoy the ride.
"We have very carefully studied the standard which has just been established for third generation cellular by the International Telecommunications Union," said Interdigital Vice President Rip Tilden. "We've concluded a number of our design ideas and intellectual property, meaning patented inventions, are part of that standard. For the future for us, that means there's a terrific opportunity for growth in licensing our technology and selling chips."
Tilden said the company "has been working in the standards process for the past couple years and tracked elements of the standard where Interdigital's contributions are reflected."
He added a law firm specializing in patent claims was hired to back up the company's claims. However, other companies are making similar claims, and resolution could be a lengthy process.
Based in Geneva, the ITU is a United Nations agency set up to define a standard for the emerging 3G cellular market. 3G cellular will be the first cellular radio technology designed to support wideband data communications (like video conferencing) as well as supporting voice communications.
Tilden said a standard in an industry serves two purposes: It encourages the creation of equipment and networks that can be used anywhere in the world and it gives developers the chance to add on to the existing standard.
"If you're from North America and try to use a cell phone in Europe or Asia, it won't work," he explained. "But with a 3G standard, you'll be able to use a palmtop or laptop or digital phone anywhere in the world with this wireless technology."
Tilden said the company is currently in licensing talks with a number of 'major players' in the wireless industry.
Interdigital is just one of several wireless companies claiming to have patented part of the 3G standard. Wi-Lan Communications (TSE: WIN) is another. Interdigital said its claim falls into the realm of "air interface", which focuses on sending signals through the air from one place to another.
Rob Millham, a technology analyst from Research Capital Corp. said in the next few years, the wireless market will balloon into an industry worth billions and Interdigital looks ready to grab its share, provided its lawyers are ready to go into battle.
"There's a good chance they have a legitimate patent claim but many companies are making similar assertions. It's a dogfight when you start to talk about patents and proprietary rights. These things get fought and they go on forever."
Millham added the rise in stock price is good news for Interdigital because it's an indication the market thinks the firm's technology will become an important part of 3G cellular.
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