Major Chinese vendor renews InterDigital (NASDAQ: IDCC) 5-year license
Rhea-AI Filing Summary
InterDigital, Inc. reported that it has renewed a worldwide, non-exclusive, royalty-bearing license with a major Chinese vendor. The agreement runs for five years and applies to the vendor’s cellular products, including smartphones and other cellular-enabled devices.
The renewed license covers use of InterDigital’s standard essential cellular, WiFi, and HEVC patents, meaning the Chinese vendor can continue to incorporate these technologies in its connected devices in return for royalties over the life of the agreement.
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Insights
Five-year renewal supports ongoing patent-licensing revenue, but terms are undisclosed.
InterDigital has renewed a worldwide, non-exclusive, royalty-bearing license with a major Chinese vendor covering cellular products such as smartphones and other cellular-enabled devices. The agreement spans five years and is tied to the company’s standard essential cellular, WiFi, and HEVC patents, reinforcing its core licensing business model.
The filing does not quantify financial terms, but a multi-year renewal with a large Chinese device maker suggests continued monetization of InterDigital’s wireless and video patent portfolio. Because the license is non-exclusive, InterDigital remains free to license the same patents to other manufacturers.
Over the five-year term of this renewed license, royalty revenue from this customer will depend on the vendor’s shipment volumes and product mix using cellular, WiFi, and HEVC technologies, within the framework of InterDigital’s standard essential patents.
FAQ
What did InterDigital (IDCC) disclose in this 8-K filing?
InterDigital disclosed that it has renewed a worldwide, non-exclusive, royalty-bearing license with a major Chinese vendor, covering certain of the vendor’s cellular products.
How long is the renewed license term for InterDigital (IDCC)?
The renewed license has a term of five years, providing a multi-year framework for the Chinese vendor’s use of InterDigital’s patented technologies.
Which products are covered by InterDigital’s renewed license with the Chinese vendor?
The license covers the vendor’s cellular products, including its smartphones and other cellular-enabled devices.
What types of patents are included in InterDigital’s renewed license?
The license covers InterDigital’s standard essential cellular patents, as well as its WiFi and HEVC patents.
Is the renewed InterDigital license exclusive to the Chinese vendor?
No. The agreement is described as worldwide, non-exclusive, royalty bearing, meaning InterDigital can license the same patents to other parties.
Does the renewed agreement between InterDigital and the Chinese vendor involve royalties?
Yes. The license is explicitly described as royalty bearing, so the vendor pays royalties to InterDigital for use of the covered patents.