"Godfather" Goldberg to Europe: a deal they "can't refuse"?
Based both on my own DD and a very heavy dose of intuition, I suggest that some version of the following may be in process:
From the Ericy-IDC briefs released recently, the Europeans now have a sense of the strong case that IDC can make in enforcing their TDMA-GSM patents.
Threatening to sue in Europe, savvy veteran patent attorney and Interim President Howard Goldberg offers Ericsson, Alcatel, Siemens, Philips et. al. a deal they won't be able to refuse. Namely-
a. pay IDC half now of what you owe IDC for past infringement on TDMA and GSM.
b. put the other half you owe in an escrow account now
c. draw on the escrow account annually for up to 30% of what you will owe IDC for third generation IPR over the next 5 years
d. any money remaining in escrow in five years goes to IDC (use it or lose it)
e. pay IDC for future TDMA-GSM royalties on an ongoing basis
This deal gives IDC:
1. immediate cash and credibility for investors
2. a guarantee that the rest of the money owed will come to IDC in not more than 5 years
3. guarantees a strong stream of revenue for years to come
4. a running start on the competition in getting IDC IPR in 3G products
This deals benefits Ericy, Alcatel, Siemens, Philips et. al.:
1. A "fifty cents on the dollar" deal for past TDMA-GSM infringement
2. Saves face and money by cutting down on what they tell shareholders they will have to pay out for past infringement
3. They might as well use IDC IPR over anybody else's because they get, in effect, a 30% discount on it by using escrow funds for 30% of costs of 3G royalties to IDC.
I have no inside info. But a deal like this makes sense to me. And intuition tells me something like this may be in the works.
At last a "win-win" for everyone?
Comments very welcome, of course!
Bill Dalglish, editor
telecomtechstocks.com |
