8-K

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549
                                 --------------


                                    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): July 18, 2003


                     InterDigital Communications Corporation
             (Exact name of registrant as specified in its charter)



        Pennsylvania                   1-11152                 23-1882087
(State or other jurisdiction      (Commission File          (IRS Employer
     of incorporation)                  Number)           Identification No.)



                781 Third Avenue, King of Prussia, PA 19406-1409
               (Address of Principal Executive Offices) (Zip Code)


        Registrant's telephone number, including area code: 610-878-7800




Item 5.  Other Events.

On July 22, 2003 the Company issued a press release, attached hereto as Exhibit
99.1, announcing the commencement of arbitration proceedings with Nokia
Corporation.




Item 7. Financial Statements, Pro Forma Financial Information and Exhibits

(c)  Exhibits

99.1      Press release dated July 22, 2003




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


                             By:  Lawrence F. Shay
                                 ------------------------------------------
                                 Lawrence F. Shay
                                 Vice-President and General Counsel



Dated:  July 22, 2003





                                  EXHIBIT INDEX



Exhibit  No.                                Description
- ------------                                -----------

99.1                                        Press release dated July 22, 2003

EX-99

                                                                    Exhibit 99.1

               InterDigital and Nokia Enter Arbitration

    KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--July 22, 2003--InterDigital
Communications Corporation (Nasdaq: IDCC), a leading architect,
designer and provider of wireless technology and product platforms,
today announced that Nokia Corporation (Nokia) has requested binding
arbitration regarding Nokia's royalty payment obligations for its
worldwide sales of 2G GSM/TDMA (2G) and 2.5G GSM/GPRS/TDMA (2.5G)
products under the existing patent license agreement with InterDigital
Technology Corporation (ITC), a wholly-owned subsidiary of
InterDigital Communications Corporation. Pursuant to the dispute
resolution provisions of the patent license agreement, Nokia's request
for arbitration was filed in the International Court of Arbitration of
the International Chamber of Commerce (ICC).
    Nokia's arbitration request relates to ITC's claim that the patent
license agreements ITC signed with Ericsson and Sony Ericsson in March
2003 defined the financial terms under which Nokia would be required
to pay royalties on its worldwide sale of 2G and 2.5G products
commencing January 1, 2002. Nokia is seeking a determination that it
has no royalty obligations to ITC based upon ITC's licensing of
Ericsson and Sony Ericsson. Alternatively, Nokia is seeking an order
requiring ITC to provide Nokia with access to various documents
related to previous litigations, negotiations, and arbitrations with
other parties. Pending access to the requested documents, Nokia is
seeking to prevent the commencement of arbitration proceedings that
would determine royalty amounts owed to ITC for the period starting
January 1, 2002.
    ITC has thirty days to respond to Nokia's request for arbitration.
As part of ITC's response, ITC intends to file a counterclaim seeking
a determination of and award for royalties owed to ITC by Nokia.
Separately, Nokia has indicated that it intends to file an action in
Federal Court to gain access to documents previously sealed by the
Court related to the now-settled Ericsson litigation.
    "Resolving royalty issues with Nokia remains a top priority," said
William J. Merritt, Executive Vice President, General Patent Counsel
and President of ITC. "We believe that we have fully satisfied our
contractual obligations and remain confident in our position,
including our prior projections as to the amount of royalties owed and
to be paid. We are fully prepared to move forward to arbitration."

    About InterDigital

    InterDigital architects, designs and provides advanced wireless
technologies and products that drive voice and data communications.
The Company offers technology and product solutions for mainstream
wireless applications that deliver cost and time-to-market advantages
for its customers. InterDigital has a strong portfolio of patented
technologies covering 2G, 2.5G and 3G standards, which it licenses
worldwide. For more information, please visit InterDigital's web site:
www.interdigital.com. InterDigital is a registered trademark of
InterDigital Communications Corporation.

    This press release contains forward-looking statements reflecting
the Company's beliefs, plans, and expectations as to royalties owed
and to be paid by Nokia and the Company's intentions with respect to
Nokia's request for arbitration. Words such as "believe", "intend",
"projections" and similar expressions are intended to identify such
forward-looking statements.
    Forward-looking statements are subject to risks and uncertainties
and actual outcomes could differ materially from those expressed in
any such forward-looking statements due to a variety of factors
including, but not limited to: (i) resolution of the dispute as to the
applicability of the terms of the Ericsson and Sony Ericsson licensing
agreements to the royalty obligations of Nokia under its license
agreement in a manner other than the manner anticipated by the
Company; (ii) results from the dispute resolution process which could
cause changes in the anticipated amounts owed and/or paid; (iii) any
future legal proceedings that could adversely affect the royalty
obligations or payments under Nokia's license agreement; (iv) the
impact of prepayment discounts or lack thereof and the accuracy of
estimates by Nokia related thereto; (v) the actual number and selling
price of covered terminal units sold by Nokia; (vi) any actual
deviation from the assumptions made by the Company, including those
related to product mix, sales prices, and market share of Nokia; and
(vii) as well as other factors listed in the Company's most recently
filed 10-K. InterDigital undertakes no duty to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise.

    CONTACT: InterDigital Communications Corporation
             Media Contact:
             Dawn Goldstein, 610-878-7800
             dawn.goldstein@interdigital.com
              or
             InterDigital Communications Corporation
             Investor Contact:
             Janet Point, 610-878-7800
             janet.point@interdigital.com