Molloy , From your post.
First you say: IDC has not had significant (i.e. QCOM like) royalties from GSM.
Then you say: IDC have failed to collect on GSM
Which statement are you going with? First you admit IDC collects revenues on GSM and then you say they have failed to collect on GSM? You seem so intent on providing confusion you have wound up confusing yourself.
Then you ask : How will they collect from the other GSM/TDMA players?
Do you ever read any of the news releases? There's two below that clearly state Toshiba and Bosch both have agreed to pay for GSM usage. Isn't that clear enough?
Now if you really wanted to ask a good question you should have asked why Nokia's release didn't contain any agreement about GSM. HMMMM ? When and if you find the answer to that you will be headed in the right direction.
From the Nokia release.
Under the multi-year agreement, InterDigital will deliver technology building blocks for Nokia to use in third generation wireless products. The agreement, which includes paid up TDMA and CDMA patent licenses which generally extend through the project period, has an estimated value to InterDigital of approximately $70 million, including an initial payment of approximately $30 million. The companies have defined a framework for establishing licensing terms after the initial licensing period.
BOSCH LICENSES INTERDIGITAL'S TDMA PATENT PORTFOLIO;
Up-front Payment to be Received During Second Quarter
King of Prussia, PA, April 19, 1999 . . . InterDigital Communications Corporation (ASE: IDC) announced today that its subsidiary InterDigital Technology Corporation (ITC) has entered into a worldwide, royalty-bearing TDMA patent license agreement with Robert Bosch GmbH.
Under the terms of the agreement, InterDigital has granted Bosch a royalty-bearing license under ITC?s TDMA patent portfolio for thesale of telecommunications equipment made under the GSM, PDC, and IS-54/136 standards. InterDigital will receive a multi-million dollar up-front payment during the second quarter of this year under the terms of the license agreement. A portion of that payment is a royalty advance for Bosch?s expected sales through 1999. Bosch will be required to pay future royalties on the sale of TDMA-based digital wireless telephone equipment after the portion of the up-front payment constituting advance royalties is consumed.
After the revenue from this transaction is recognized in the second quarter, InterDigital will have recorded nearly $40 million in revenue this year from its patent licensing program.
"Since February, 1998, we have entered into six new patent licensing agreements and re-negotiated two existing agreements, generating over $120 million in revenue. By offering our intellectual property portfolio to the industry on a fair and reasonable basis, we are establishing a revenue base for 1999 and beyond, which generates value for our shareholders. We will continue to provide companies with access to our intellectual property portfolio and use this asset as a potential for future revenues to support our growth," said Harry Campagna, Chairman of InterDigital.
According to Howard Goldberg, President of ITC, "The growing interest in our patent portfolio is a result of the innovative technical inventions we have developed over the years. Our engineering work with TDMA and CDMA air interface technologies, and now our technology development for third generation applications, broadens our intellectual property base. As our patent portfolio grows, we plan to continue the progress we have made with our licensing program."
Robert Bosch GmbH, is headquartered in Stuttgart, Germany. The company develops, manufactures and distributes automotive equipment, communications technology, consumer goods and capital goods in over 120 countries. For more information, go to www.bosch.com.
InterDigital Communications Corporation develops and markets wireless telecommunications technology and systems using standardized and proprietary technologies for voice and data communications. InterDigital is commercializing its new B-CDMA? technology for use in wireless communication systems and products and is developing third generation technology for high data-rate applications. InterDigital, B-CDMA?, TrueLink? and UltraPhone© are among the trademarks of InterDigital Communications Corporation. Its subsidiary, InterDigital Technology Corporation holds and is the licensor of an extensive worldwide patent portfolio relating to TDMA and CDMA technology.
INTERDIGITAL GRANTS A PATENT LICENSE TO TOSHIBA; RECEIVES AN UP-FRONT PAYMENT OF $15 MILLION
King of Prussia, PA, June 1, 1998 . . . InterDigital Communications Corporation (ASE: IDC) announced today that its subsidiary InterDigital Technology Corporation (ITC) has entered into a worldwide, royalty-bearing TDMA patent license agreement with Toshiba Corporation.
ITC has received an up-front payment of $15 million, excluding source withholding taxes. In exchange for this payment ITC granted Toshiba a paid-up license for PHS and PDC equipment manufactured, sold and used in Japan. Toshiba will be required to pay ITC future royalties on the sale of products built under TDMA-based IS-54, IS-136, GSM, DCS 1800/1900 as well as PHS and PDC equipment manufactured, sold or used outside of Japan.
William Doyle, President of InterDigital, commented that, "Through licensing, we are making our intellectual property available to the industry and spreading its use around the world. We are happy to grant Toshiba this license. One of our goals for 1998 is to strengthen our patent licensing program and to realize licensing revenues from leading companies who use our inventions. This is our third new TDMA licensing agreement this year. We will continue to pursue other opportunities to generate licensing revenue and build shareholder value."
"Recent licenses reflect InterDigital?s ability to realize licensing revenues from leading telecommunications companies around the world. Under our current program, we are making our intellectual property available to the industry on a fair and reasonable basis, generating 1998 revenues and building a potential revenue base for 1999 and beyond. We are making excellent progress with our licensing program," said Howard Goldberg, Executive Vice President of ITC.
InterDigital Technology Corporation, a subsidiary of InterDigital, holds and is the licensor of an extensive worldwide patent portfolio relating to TDMA and CDMA technology. ITC?s parent company, InterDigital Communications Corporation, develops and markets wireless telecommunications systems using proprietary technologies for voice and data communications.
The above press release contains certain forward looking statements reflecting current beliefs or expectations as to the overall strength of ITC?s patent portfolio, and the value of that portfolio as regards licensing opportunities and to the development of other business relationships and the potential future revenue to be derived from patent licensing. Such statements are subject to risks and uncertainties. Actual outcomes could materially differ from those expressed in any such forward looking statement due to a variety of factors including adverse decisions as to either validity or scope by administrative or judicial bodies regarding ITC?s patents, changes in industry trends as regards to technologies being deployed or pricing, lack of adequate funding to support patent matters, as well as other risks detailed from time to time in the company?s SEC filings, including its 10-K filed for the year ended 1997. The Company undertakes no obligation to update these forward looking statements in light of future events.
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