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By: teecee in IDCC | Recommend this post (6)
Fri, 08 Jun 12 1:06 AM | 418 view(s)
Boardmark this board | InterDigital Communications
Msg. 45388 of 48237
(This msg. is a reply to 45386 by Rakitno)

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according to Bm today...LG has never ever brought up arbitration in their negotiations w/ idc....and really have no desire to do so...when you fight a case...you use every possible defense...when you file your response...he said the whole arb thing is BS..and it really wont effect the outcome...he also said the contract is available for public viewing...and that we should read it ourselves as evidence of the finality of the contract...also i asked him if the apppl contract could be a detriment if forced to arb...he said the initial rate was actually very healthy the way the contract was written...and we know the rest




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Re: moose Re: http:// (Data) ...
By: Rakitno
in IDCC
Fri, 08 Jun 12 12:51 AM
Msg. 45386 of 48237

You're an engineer and not a dollars and sense/cents guy but in case otherwise, I will ask ...

Why is there a focus on the effective rate?

With a fixed contract a rate is agreed upon. The volume is used based upon projections. Using the multiplication table, a total revenue is calculated and paid in installments.

How can, for example, an LG argue that the rate should be lowered based upon what turned out to be the effective rate? The effective rate is not the rate initially agreed upon. They initially agreed upon an actual rate and because they "knocked it out of the park" the effective rate came out lower compared to the actual rate (ie. the positives for a manufacturer to sign a fixed agreeement if your bat is corked).

The disputes appear to be between what the cost was and these companies want to maintain it, IDCC thinks otheriwse and want to focus on the actual rate agreed upon in the fixed agreement.

Effective rates are like snowflakes, no two are alike. The effective rate is going to be different for everyone with a fixed contract. But the actual rate, agreed in the contracts, could/should be all the same.

P.S. Wedding was good. Music was fun. Nothing like leaving a wedding and having the question "Where are they now?" answered by "They do weddings?!"


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