The key to any settlement is the 4G royalty benchmark being established, not how much money is owed for past infringement. Past infringement is negotiable, whereas 4G royalty benchmarks are not and I don't believe settlements will occur unless Larsen secures 4G licensing as part of the deal.
I agree, Floyd. And to discuss more about the process, this is how many smaller NPEs (similar to VHC) have historically contacted manufacturers: The licensing team sends out what is called a "Patent Infringement Letter" to a selected group of businesses. These letters vary in tone and content depending on the target companies involved as well as the IP owner's specific Patent Enforcement Business Model. Just like a letter from a debt collector, these PILs can include language that is very aggressive and seem threatening in regards to potential future litigation or treble damages. Or they can be more of a formal notice, to let the manufacturer know that the company is enforcing their rights in regards to specific patents and applications.
Obviously nobody knows the actual specifics of VHC's current patent enforcement strategy. But one thing we all should know is that this business model has evolved a great deal in last couple of decades, and in particular the last few years. With the emergence of Acacia and Wi-Lan as successful IP licensing companies, the industry is now much better understood by participants, analysts, and investors as a whole. There are actual companies and sub-divisions of existing companies whose primary focus is to sell licensing services and know-how. From Wi-Lan's "Gladios IP" to companies like IDCC and Intellectual Ventures selling their own expertise, there is no shortage of knowledge and education when it comes to utilizing unique licensing solutions and services.
I suspect Larsen & Co. have done their DD and have contacted some of the above entities - or at the very least - similar resources in regards to IPR enforcement. We already know they have top notch counsel in McKool Smith. It's not a stretch to assume they have already received (or are receiving ongoing) top notch advice in regards to their licensing strategy