InterDigital Announces Resolution of Samsung Arbitration
Thursday December 26, 9:17 am ET
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Dec. 26, 2002--InterDigital Communications Corporation (Nasdaq:IDCC - News), a leading architect, designer and provider of wireless technology and product platforms, today announced that the International Chamber of Commerce (ICC), International Court of Arbitration (ICA) has rendered a decision in the arbitration proceedings between InterDigital's subsidiary, InterDigital Technology Corporation (ITC) and Samsung Electronics Co., Ltd. (Samsung).
The arbitration decision relates to a complaint filed by ITC against Samsung in February 2002. The decision resolved a dispute between the companies which, among other things, related to the manner in which ITC's patent license agreement with the Nokia Corporation should apply to Samsung under Samsung's most favored licensee (MFL) rights included in its 1996 patent license agreement with ITC.
The dispute dealt with specific contractual terms in the Samsung patent license agreement and did not involve any issue of validity or infringement of ITC's patents. The decision of the arbitration panel is binding, subject to limited appeal rights.
Under the terms of the ICC decision, Samsung's prior royalty credit of $18.7 million ($11.5 million of which had previously been recognized as revenue by InterDigital) will be reduced to $6.7 million to account for royalties due on sales of licensed TDMA products up through December 31, 2001.
As a result of the ICC decision, InterDigital expects to recognize approximately $0.5 million of revenue in the fourth quarter 2002 related to Samsung's royalty obligations through December 31, 2001.
Also, pursuant to Samsung's election regarding the Nokia patent license agreement under its MFL rights, Samsung's royalty obligations (against which the $6.7 million credit would apply) for sales of 2G and 2.5G TDMA wireless communications products commencing January 1, 2002 will be determined in accordance with the terms of the Nokia patent license agreement.
About InterDigital
InterDigital architects, designs and provides advanced wireless technologies and products that drive voice and data communications. The Company offers technology and product solutions for mainstream wireless applications that deliver cost and time-to-market advantages for its customers.
InterDigital has a strong portfolio of patented technologies covering 2G, 2.5G and 3G standards, which it licenses worldwide. For more information, please visit InterDigital's web site: www.interdigital.com.
InterDigital is a registered trademark of InterDigital Communications Corporation. All other trademarks are the property of their respective owners.
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Contact:
InterDigital Communications Corporation
Media Contact:
Guy Hicks, 610/878-7800
email: guy.hicks@interdigital.com
or
Investor Contact:
Janet Point, 610/878-7800
email: janet.point@interdigital.com
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Source: InterDigital Communications Corporation |
