I just received Morgan Keegan's update by Ram.
They have changed the category from speculative (M-S) to market risk (M-M). It 's not as high as we would like it but it but at least it's a rise as ratings go.
His comments however were much stronger in sending a message. He said.
"There are a few important aspects of this agreement , which we would like to point out. First, the initial licensing payments (30 million ) include payments for Nokia's past use of IDC's TDMA and CDMA licenses as well as payments for Nokia's continued use of these patents over the term of this development pact. Following a record year in licensing revenue in 1998 , Nokia's recognition of IDC's patents indicate to us the strength of the company's TDMA and CDMA patent portfolio.
Second , IDC will be developing new technology for Nokia for use in 3-G systems. In developing 3G technology with Nokia , IDC begins a shift to develop wireless intellectual property for more mobile applications, which is a shift from their traditional fixed wireless focus.. This new technology , which is owned by IDC and not jointly , could add to the company's portfolio of technology patents.
Finally, we believe this pact should improve IDC's visibility in the industry as a leading edge engineering and technology development partner. Nokia , as the leading hanset manufacturer in the world , certainly provides IDC with improved credibility not only in its existing portfolio , but also in it's 3G development efforts. "
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The first paragraph spells it all out when he said the payment was for past use of TDMA and CDMA patents. With Nokia admitting past usage how far behind can Alcatel, Philips, ERICY , Nortel, Lu , Motorola , Sony and all the rest be ? Things will progress much faster now since this cat is out of the bag. All that is needed is to negotiate fair and reasonable terms. I'm sure when the Ferret gets back he will agree with my reasoning as I hope the rest of you do. Even Honda and Astutely could get a read on this one. It will be a real pleasure this summer to do some real fishing instead of fishing for news.
Jim
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