There's nothing like having a court decree on your side to go after someone who owes you money. In Motley Fool Stock Advisor recommendation InterDigital's
News of the court backing fueled an 18% rise in InterDigital's stock yesterday, as investors now see Samsung forced to pay up. While Samsung can appeal the court's declaration, InterDigital noted that the device maker would have to post a bond to do so.
InterDigital has been wrangling with Samsung for years, attempting to get paid for royalties on millions of devices being sold to carriers such as Verizon Wireless ---a joint venture between Verizon Communications
However, if InterDigital does manage to collect on this ruling, it will only represent a portion of what it thinks Samsung owes. The arbitration in this case only accounted for use of intellectual property for second-generation (2G) devices. Samsung is busily churning out advanced 3G devices, which according to InterDigital also use its patents.
These devices are also being sold across more carriers, such as AT&T
While the lawyers at InterDigital can raise their glasses of bubbly and breathe a little easier today, the check isn't in the bank yet. Final payment may be dragged out further, and there's still plenty of work ahead, with many more legal battles remaining.
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Fool contributor Dave Mock is seeking a court decree to collect Girl Scout cookies upon sight. He owns shares of Qualcomm and is the author of The Qualcomm Equation. Sprint Nextel is an Inside Value recommendation, and Vodafone is a former pick. The Fool's disclosure policy wriggles and jiggles.