Mooseo
I think we should visit a few facts now and then to understand where we are and where we are going.
1. The BOD is studying strategic alternatives for maximizing shareholder value. These alternatives range from status quo to the sale of the company.
2. There is no time limit.
3. There is a self imposed silence at this time.
4. IDCC is seeking to enforce its IPR at the ITC against 4 of the largest OEM's in the world. The other 4 are presently under license.
5. The ITC complaint is timed to reach a decision at the end of 2012.
6. IDCC is not only presenting the teardowns of Nok, LG, Huawei and Zte terminals, they are including the teardowns of the basestations to define connectivity and rampups in the establishment of the pipes being created between the terminals on both ends for the transmission of voice and data.
7. The big boys have been backed into a corner regarding FRAND. In order to successfully argue that an injunction should not issue, it will ultimately come down to an additional assumption in the assumed license theory. This additional assumption must be that patent at issue is essential which means it is valid, enforceable and infringed by every OEM in the sector. They will be forced to admit in open court that the only items of controversy are the price and terms of payment because the term will be the length of the patent's life by definition.
8. Thus, 2012 may be a lean year or a monster depending upon the respondents in the 337 ITC investigation. IDCC has a new set of patents and a new set of trial attorneys that intend to paint the entire picture from terminal A through the basestation to terminal B and the relationship of the inventions throughout the process. The opponents are already nervous as evidenced by their motions to recuse the new trial lawyers.
9. If the potential buyers do not reach the number desired by the BOD, then no sale will occur.
10. If IDCC is successful in the new 337 ITC investigation and licensing occurs, the price to purchase the company will explode.
11. While we tend to get impatient, a show down will be happening within about a year that will dictate the future. IDCC may find themselves in a position to assist others in licensing for a third of the action along with their own royalty revenue.
12. Finally, FRAND rates come in two flavors. The first is without the necessity of litigation expense recoupment. The second is with litigation expense recoupment. It is an easy concept and can easily be presented to a jury with the use of a professorial looking expert and a blackboard with plenty of chalk or a fancy handout for their viewing and listening pleasure.
Any beartraps are being set to exploit the options trading. They certainly have nothing to do with the fundamentals and strategic alternatives of IDCC. I am half tempted to send these points to Evercore/Barclays, but I am not a proponent of shareholders butting in on the business of the BOD.
MO
zzfan
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