February 10, 1996 in Social Responsibility News

SAMSUNG to Join InterDigital and Siemens Telecommunications Alliance

InterDigital UltraPhone digital wireless local loop (WLL) telecommunications products and InterDigital patents, including its Code Division Multiple Access (CDMA) patents will be licensed to Samsung, together with its proprietary Broadband Code Division Multiple Access B-CDMA? air interface technology.

Samsung has agreed to make a financial contribution to InterDigital in excess of US$35 million (of which approximately one-half constitutes royalty payments), which after application of certain Korean taxes and transaction costs is expected to result in a net amount of approximately US$28 million. Payment and final transaction effectiveness are subject to receipt of Korean regulatory approval, which is anticipated to take approximately 45 days. Approximately 60% of the total amount is due to be paid upon regulatory approval, with the remaining portion paid on or before June 15, 1996.

Samsung will also provide 35 engineering man-years to the alliance for the development of B-CDMA technology. Samsung will participate, together with InterDigital and Siemens AG, in the development of B-CDMA technology and digital wireless access products. An initial objective is to create a B-CDMA based WLL product. The eventual objective is to establish B-CDMA technology as a worldwide standard for Personal Communications Services (PCS). InterDigital defines ?rue PCS# to provide bandwidth on demand: from ISDN to multimedia, including high-speed data, high-fidelity audio and video.

UltraPhone technology will also be transferred to Samsung, enabling it to manufacture and sell privately labeled systems. InterDigital and Samsung anticipate that with Samsung? expertise in low cost, high quality manufacturing it may become a significant UltraPhone supplier to InterDigital.

InterDigital and Siemens have amended their agreements of December 16, 1994 to include Samsung in the B-CDMA development program and to facilitatre the broad technology sharing and close working relationship anticipated by these recent agreements.

William J. Burns, Chairman of the Board and Chief Executive Officer of InterDigital, and Yong Ro Song, Vice President of the Information Systems Business of Samsung Electronics, stated that the Samsung agreements were the result of an extensive evaluation by InterDigital, Samsung and Siemens of the complementary strengths provided by this relationship.

Mr. Song further commented that the strong mandate of the government of the Republic of Korea, and the desire of Korean telecommunications operators to be leaders in the implementation of advanced WLL and PCS technology, could provide tremendous opportunities for B-CDMA technology. Samsung believes that B-CDMA products will fill this need in a manner which cannot be achieved by other more narrowly-based technologies and InterDigital believes that through Samsung as an equipment manufacturer and supplier it will be favorably positioned to take advantage of these opportunities.

Samsung Electronics Co., Ltd., a US$ 21 billion flagship company of Korean-based Samsung Group, is a world leader in the electronics sector, with operations in more than 70 countries. The company develops, manufactures, and markets audio and video products, household electronics goods, computers & peripheral products, display products, telecommunication & information systems, software tools & semiconductors.

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