We believe that the decisions in the first and second proceedings are seriously flawed both legally and factually. For instance, in determining a purported FRAND rate, the Chinese courts applied an incorrect economic analysis by evaluating our lump-sum patent license agreement with Apple in hindsight to posit a running royalty rate. Indeed, the ALJ in USITC Inv. No. 337-TA- 800 rejected that type of improper analysis. Moreover, the Chinese courts had an incomplete record and applied incorrect facts, particularly in view of the recent arbitration decision, discussed below, which found that our license agreement with Apple is limited in scope. InterDigital intends to appeal the Guangdong Province High Court’s decisions to the Supreme People’s Court in Beijing.
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