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                UNITED STATES 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): October 6, 2005
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                     InterDigital Communications Corporation
             (Exact name of registrant as specified in its charter)



        Pennsylvania                   1-11152                   23-1882087
(State or other jurisdiction         (Commission               (IRS Employer
      of incorporation)              File 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

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

|_|  Written communications pursuant to Rule 425 under the Securities
     Act (17 CFR 230.425)
|_|  Soliciting material pursuant to Rule 14a-12 under the Exchange
     Act (17 CFR 240.14a-12)
|_|  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))
|_|  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))

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Item 8.01.   Other Events.

On October 6, 2005, the United States District Court for the Eastern District of
Pennsylvania  (the Court)  presiding  over the litigation  between  InterDigital
Communications   Corporation,   together   with  its   wholly-owned   subsidiary
InterDigital  Technology  Corporation  (collectively,  the Company), and Federal
Insurance Company (Federal), filed an order granting in part and denying in part
Federal's  motion to dismiss the Company's  complaint.  Federal is the insurance
carrier which  provided  partial  reimbursement  to the Company of certain legal
fees and  expenses  for the  now-settled  litigation  involving  the Company and
Ericsson  Inc. The Court  dismissed  the Company's  claims  asserting  breach of
contract  and bad faith by Federal  and further  ordered  the dispute  regarding
Federal's recovery of attorneys' fees and expenses previously  reimbursed to the
Company by Federal be submitted to  arbitration.  As part of its  decision,  the
Court  determined  that  the  Litigation  Expense  and  Reimbursement  Agreement
(Agreement)  between Federal and the Company (which  Agreement served as a basis
for  Federal's  demand to recover the  reimbursed  legal fees and  expenses)  is
enforceable,  but did not  address  whether  Federal is  entitled to recover any
reimbursed  legal fees and expenses.  Also,  the Court  reserved to a later time
consideration of whether any arbitration  award would be binding on the parties.
In first  quarter  2003,  the Company  accrued a  contingent  liability  of $3.4
million  related  to  the  Agreement.   This  information   updates  information
previously  reported in the Company's Form 10-Q for the quarters ended March 31,
2005 and June 30, 2005, respectively,  and Form 10-K for the year ended December
31, 2004.






                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly caused this Current  Report on Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.


                             INTERDIGITAL COMMUNICATIONS CORPORATION


                             By: /s/Lawrence F. Shay
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                                 Lawrence F. Shay
                                 General Counsel



Dated:  October 11, 2005