Barely a month ago, I quipped that wireless technology licensor and Motley Fool Stock Advisor recommendation InterDigital
Well it didn't take long for the company to answer with the scintillating news that it has made substantial progress in resolving all ongoing disputes with top device maker Nokia
Instead of arbitration, InterDigital had been hoping to move forward with an investigation handled by the U.S. International Trade Commission (ITC), which could hold more severe consequences for Nokia. InterDigital's complaints at the ITC also include motions against patent holdout Samsung, which is unaffected by the recent Nokia ruling.
A Supreme Court ruling in a case between eBay
InterDigital was hoping the agency would give it some grit to command a better deal. Just as Qualcomm's ban has threatened product rollouts with carriers such as AT&T
A full-blown settlement with Nokia would be good news for InterDigital shareholders, not simply for the sizable payment that is likely to go along with it, but for the leverage it would give InterDigital against Samsung and any other manufacturer balking at paying for licenses. Until that occurs, though -- assuming it happens at some point -- investors should expect more dramatic swings in InterDigital's stock.
InterDigital is one of dozens of stocks recommended to Motley Fool Stock Advisor subscribers. To see all the stocks that have helped Tom and David Gardner beat the market by 38 points on average, take a free 30-day trial.
Fool contributor Dave Mock often dreams of white sand beaches, cold beer, and a world without Elmo. He owns shares of Qualcomm and is the author of The Qualcomm Equation. eBay is a Stock Advisor recommendation. The Fool's disclosure policy takes no sides in the boxers or briefs debate.