Humble,
Agreed, but (and here's the big butt!)...IF IEN breached the contract through non-payment for the exclusive licensing fees, then they have no grounds for the suit, as it is based upon their suppossed exclusive license of this patented product.
So IEN breached before they could ever be harmed by the non-exclusive use of the product (as it pertains to HTC anyway)
I would attack the breach issue first, as all is goes mute if IEN did, in fact, break the contract.