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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): May 16, 2007

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



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


      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 May 16, 2007,  the  Arbitrator in the  arbitration  proceeding  between
InterDigital   Communications   Corporation  and  its  wholly-owned   subsidiary
InterDigital  Technology Corporation  (collectively the "Company"),  and Federal
Insurance  Company  ("Federal"),  and  relating  to  a  Litigation  Expense  and
Reimbursement  Agreement signed in February 2000 by the parties  ("Reimbursement
Agreement"),  refused to award the full amount of  Federal's  claim which was in
excess of $33  million.  The  Arbitrator  did award  Federal  approximately  $13
million,  pursuant to a formula set forth in the  Reimbursement  Agreement,  for
reimbursement of attorneys' fees and expenses previously paid to or on behalf of
the Company by Federal, plus approximately $2 million in interest. As additional
reimbursement  of  attorneys'  fees and  expenses,  the  Arbitrator  awarded  $5
million,  without interest, as Federal's share under the Reimbursement Agreement
of "additional  value" of the 2003  settlement  between the Company and Ericsson
Inc. The  approximately $13 million portion of the Award represents a percentage
of  the   amounts   the   Company   has   received   since   March   2003   from
Telefonaktiebolaget  LM Ericsson and Ericsson  Inc.,  and Sony  Ericsson  Mobile
Communications AB under their respective patent license agreements.

      The  Company  has not yet  determined  whether it will  contest all or any
portion of the Award.  The United States District Court for the Eastern District
of  Pennsylvania  which  referred  the  matter  to  arbitration  had  previously
reserved,  to a later time,  a decision on the issue of whether any  arbitration
award would be binding on the parties.

      Federal had provided partial reimbursement to the Company of certain legal
fees and expenses for the  litigation  settled in 2003 involving the Company and
Ericsson  Inc.,  and had  previously  delivered  to the  Company  a  demand  for
arbitration  under the  Pennsylvania  Uniform  Arbitration Act claiming that the
Reimbursement  Agreement  required the Company to reimburse  certain  attorneys'
fees and expenses paid by Federal in connection with the litigation  between the
Company and Ericsson Inc. Prior to Federal's demand for arbitration, the Company
had accrued a contingent  liability of $3.4 million related to the Reimbursement
Agreement.  Regardless  of any  decision  by the  Company to contest  all or any
portion of the Award,  the Company expects to record an expense of approximately
$16.4 million in second quarter 2007 which amount represents the total amount of
the Award less the amount of the previously accrued liability.

      This information updates information  previously reported in the Company's
Form 10-Q for the quarter ended March 31, 2007.




                                   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
                                        Chief Legal Officer & Government Affairs



Dated:  May 18, 2007