SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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Form 8-K
Current Report
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 17, 1998
INTERDIGITAL COMMUNICATIONS CORPORATION
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(Exact name of registrant as specified in charter)
PENNSYLVANIA 1-11152 23-1882087
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(State or Other Jurisdiction of (Commission (I.R.S. Employer
Incorporation or Organization) file number) Identification
Number)
781 Third Avenue, King of Prussia, Pennsylvania 19406-1409
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(Address of principal executive offices)
(610) 878-7800
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(Registrant's telephone number, including area code)
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Item 5. Other Events.
InterDigital Technology Corporation ("ITC"), a wholly owned subsidiary of
InterDigital Communications Corporation ("InterDigital"), has entered into
separate TDMA patent license agreements with Sharp Corporation ("Sharp") and
Kyocera Corporation ("Kyocera"). Under the agreements, ITC received aggregate
gross payments of $33 million. The payments, less ten percent (10%) Japanese
source withholding tax, were received by ITC on April 17, 1998. In addition to
the up front payment (and subject to certain deferral provisions), Sharp is
required to pay running royalties to ITC on Sharp's sale of equipment built to
comply with the TDMA-based PHS and PDC standards. In consideration of its up
front payment, Kyocera was granted a fully paid-up license under the PHS and PDC
standards but is required to pay running royalties on Kyocera's sale of
equipment covered by the claims of ITC's patents and built to comply with other
TDMA standards (including but not limited to GSM, IS-54, IS-136, and DECT).
Sharp and Kyocera each received a fixed credit aggregating approximately
$9 million towards such future royalty obligations.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INTERDIGITAL COMMUNICATIONS CORPORATION
Date: April 21, 1998 By:
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William A. Doyle
President
