InterDigital to Host Conference Call to Discuss Impact of Final Award in Arbitration Proceeding with Nokia Corporation.KING OF PRUSSIA King of Prussia, industrialized suburban area (1990 pop. 18,406), Montgomery co., SE Pa. It has glass and steel fabricating, food processing, printing and publishing, and varied manufacturing (textiles, liquified petroleum gas, water-treatment and electrical , Pa. -- InterDigital interdigital between two digits. interdigital cysts see interdigital pyoderma, pododermatitis. interdigital dermatitis 1. the early lesion in the development of infectious footrot in sheep; called also sheep scald. Communications Corporation (Nasdaq:IDCC IDCC Integrated Dual-use Commercial Companies ), a leading designer, developer and provider of wireless technology and product platforms, announced today that it will host a conference call to discuss the impact of the Final Award in the arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the proceeding between InterDigital Communications Corporation, InterDigital Technology Corporation (ITC ITC (Brit) n abbr (= Independent Television Commission) → Fernseh-Aufsichtsgremium ITC n abbr (BRIT) (= Independent Television Commission) → ), one of the company's wholly-owned subsidiaries, and Nokia Nokia (nō`kēä), town (1996 pop. 26,326), Western Finland prov., SW Finland, on Lake Näsijärvi. It is an industrial community where wood and rubber products are manufactured. Corporation (Nokia). The Final Award relates to Nokia's royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. obligations on its worldwide sales of 2G GSM/TDMA and 2.5G GSM/GPRS/EDGE products under its existing patent license agreement with ITC. During the conference call, company executives will provide some additional insights relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Final Award. In addition to reiterating information contained in the company's press release dated July July: see month. 1, 2005, InterDigital's executives will discuss the following items:
-- Background on the Nokia patent license agreement
-- The Arbitral Tribunal's determination of the following issues
relating to Nokia's patent license agreement with ITC:
-- Sony Ericsson and Ericsson qualify as major competitors
under the Nokia patent license agreement and, as such,
ITC's license agreements with Sony Ericsson and Ericsson
establish the framework for Nokia's royalty obligations
under its patent license agreement for 2G and 2.5G
handsets and infrastructure sales, respectively.
-- In identifying the applicable handset royalty rates, the
Arbitral Tribunal took into account Nokia's higher level
of sales volume as compared to Sony Ericsson.
-- The establishment of a relatively short time frame for
Nokia to submit payment to InterDigital for royalties
associated with sales of covered products from January 1,
2002 through June 30, 2005.
-- In addition to its royalty obligations from January 1,
2002 through June 30, 2005, Nokia is required to pay
royalties to InterDigital using the rates identified by
the Tribunal and applying the other royalty-bearing terms
of the Ericsson and Sony Ericsson Agreements for sales
from July 1, 2005 to December 31, 2006.
-- InterDigital estimates that Nokia's royalty obligations for
covered infrastructure and handset sales from January 1, 2002
through December 31, 2003 will be approximately $112 million.
In addition, InterDigital estimates that Nokia's royalty
obligations for sales of covered products during 2004 is in
the range of $50 million to $55 million. For 2005 and 2006
covered product sales, using publicly-available forecasts, the
company estimates that Nokia's royalty obligations will be in
the range of $70 million to $90 million, depending upon
whether Nokia avails itself of the prepayment option
applicable to the remainder of 2005 and the full year 2006.
Consistent with the terms of the Ericsson and Sony Ericsson
agreements, Nokia's 2G and 2.5G royalty obligations would be
paid-up after December 31, 2006. All of the above amounts
exclude awarded interest. The decline in the average annual
royalties in the 2005 and 2006 time frame is due to possible
prepayment discounts and the diminishing amount of 2G and 2.5G
TDMA-based devices that are projected to be sold as 3G product
sales become a larger part of the market.
-- Based on InterDigital's application of the Nokia Tribunal's
award and updated information as to Samsung's sales for the
years 2002 through 2004, the company updated guidance relative
to Samsung's royalty obligations. Specifically, prior guidance
had stated that Samsung would owe InterDigital approximately
$22 million to $27 million for 2002 sales of covered product.
In addition, based on Samsung prepaying its 2003 and 2004
royalties, the company previously estimated that it would have
recorded revenue of approximately $20 million to $24 million
for 2003 sales. The company reaffirmed the original guidance
but indicated that the actual amounts should be somewhat
higher based on prepayment discounts for past sales no longer
being available.
InterDigital will host a conference call on Tuesday Tuesday: see week. , July 5, 2005 at 8:00 a.m. Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time, to discuss the Final Award and its impact on the company. To access the conference call within the U.S., please dial 1-800-289-0569. International participants may access the call by dialing 1-913-981-5542. Please dial in to the call by 7:50 a.m. Eastern Daylight Time on July 5, 2005 and ask the operator for the InterDigital conference call. InterDigital also will provide access to the call on its web site at: www.interdigital.com. In addition, a replay of the conference call will be available for one week after completion of the call. To access the recorded replay, dial 1-888-203-1112 and use the confirmation code 1690544. International participants may access the replay by dialing 1-719-457-0820 and using the confirmation code 1690544. A replay of the conference call also will be available on the company's web site. About InterDigital InterDigital designs, develops and provides advanced wireless technologies and products that drive voice and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. . The company offers technology and product solutions for wireless applications that deliver time-to-market, performance and cost benefits, as well as product differentiation Product Differentiation A source of competitive advantage that depends on producing some item that is regarded to have unique and valuable characteristics. advantages to its commercial and government/military customers. InterDigital has a strong portfolio of patented technologies covering 2G, 2.5G, 3G and 802 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. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding our current beliefs and expectations as to the Final Award received in the Nokia Arbitration, the application and impact of the Final Award to the license agreements with Nokia and Samsung and their royalty obligations, and amounts due from Nokia and Samsung. Words such as "estimates", "should" or similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, and actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors including, without limitation, those contained herein and: (i) InterDigital's interpretation of and Nokia's compliance with the Final Award; (ii) adjustments in the estimated and actual amounts of sales of Nokia and Samsung covered products derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from InterDigital or third party data or assumptions, or inaccuracies in sales figures sales figures npl → cifras fpl de ventas supplied during the Nokia arbitration; (iii) the company's application of an available prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. option; (iv) an interpretation or application of the Final Award by the panel in the Samsung arbitration different from the company's interpretation and application; (v) unanticipated results in enforcement proceedings relating to the Final Award; and (vi) other factors set forth in the company's July 1, 2005 and March 17, 2003 press releases. InterDigital undertakes no duty to update any forward-looking statements, whether as a result of new information, future events or otherwise. |
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