InterDigital updates patent license agreement with Sanyo covering terminal units and infrastructure compliant with all 2G and 3G standards

June 7, 2004

1 Min Read

KING OF PRUSSIA, Pa. -- InterDigital Communications Corporation (NASDAQ:IDCC), a leading architect, designer and provider of wireless technology and product platforms announced today that its patent holding subsidiaries have entered into a worldwide, non-exclusive, royalty-bearing patent license agreement with SANYO Electric Co., Ltd, covering terminal units and infrastructure compliant with all 2G and 3G standards. The new license agreement updates and expands a 1998 agreement between SANYO and InterDigital Technology Corporation covering products compliant with TDMA-based standards.

Under the new agreement, SANYO is obligated to pay InterDigital an upfront amount of approximately $27 million, which amount can be paid in full early in the third quarter 2004 or in two installments ($17.5 million in third quarter 2004 and $10 million in first quarter 2005). Given the complexity of accounting for revenue associated with an agreement utilizing running royalties, time-based royalties and exhaustion of pre-paid units, the Company and its auditors have not finalized the manner in which revenue will be recognized for payments to be received under this agreement. The Company will provide appropriate guidance in a future SEC filing once the revenue recognition evaluation is complete.

InterDigital Communications Corp.

Sanyo Electric Co. Ltd.

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