UPDATE -- InterDigital and Lenovo agree to enter into new license agreement – final terms to be determined in binding arbitration
Rhea-AI Summary
InterDigital (Nasdaq: IDCC), a mobile, video and AI technology R&D company, has announced an agreement to enter into a new patent license agreement with Lenovo. The final terms of this agreement will be determined through binding arbitration. As part of this process, both companies have agreed to settle all pending litigations between them.
Eeva Hakoranta, Chief Licensing Officer at InterDigital, commented on the development, stating that binding arbitration provides a sophisticated global dispute resolution mechanism when disagreements arise during licensing negotiations. She expressed anticipation for the conclusion of the arbitration process.
Positive
- Agreement to enter into a new patent license agreement with Lenovo
- Settlement of all pending litigations between InterDigital and Lenovo
- Utilization of binding arbitration for dispute resolution
Negative
- Final terms of the license agreement are yet to be determined
Insights
The agreement between InterDigital and Lenovo to enter binding arbitration for a new patent license agreement is a significant development. This approach streamlines the dispute resolution process and avoids prolonged legal battles, which can be costly and time-consuming for both parties.
The settlement of all pending litigations is particularly noteworthy, as it reduces legal expenses and uncertainty for InterDigital. This move towards arbitration demonstrates a more collaborative approach to intellectual property disputes in the tech industry, potentially setting a precedent for future licensing negotiations.
For investors, this development suggests a potentially faster path to revenue recognition from Lenovo's licensing fees, although the final terms are yet to be determined. The arbitration process typically results in a fair and binding agreement, which could provide more stability to InterDigital's licensing income stream in the long term.
WILMINGTON, Del., Oct. 09, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video and AI technology research and development company, today announced that it agreed to enter into a new patent license agreement with Lenovo. The parties will enter into binding arbitration to determine the final terms of the new agreement.
As part of the agreement to arbitrate, both parties have agreed to settle all pending litigations between them.
“When disputes do arise in licensing negotiations, binding arbitration provides for a sophisticated global dispute resolution mechanism,” commented Eeva Hakoranta, Chief Licensing Officer, InterDigital. “I look forward to the conclusion of the arbitration.”
About InterDigital®
InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
InterDigital Contact:
Richard Lloyd
Email: richard.lloyd@interdigital.com
+1 (202) 349-1716
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