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Paullee - My guess is "share expense" is payable to Sony for their portion of the partnership with Interdigital.
"Operating expenses are expected to be in the range of $146 to $154 million, including revenue share expense of $66 to $69 million."
anyone know what share expense is ?
InterDigital Issues Preliminary Financial Results for Fourth Quarter 2023 and Outlook for First Quarter 2024
Source: GlobeNewswire Inc.
InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced selected unaudited preliminary financial results for the quarter ended December 31, 2023, and an initial outlook for first quarter 2024.
Q4 2023 Preliminary Results
GAAP
The company expects total revenue to be approximately $105 million, comprised primarily of recurring revenue and in line with prior guidance.
The company expects operating expenses to be approximately $81 million, updated from its previous expectation of $77 to $79 million. The increase related to higher litigation costs and performance-based compensation.
Net income1 is expected to be approximately $34 million, above the previous expectation of $18 to $21 million. The diluted earnings per share is expected to be approximately $1.20, above the previous expectation of $0.70 to $0.80. These increases are primarily related to the company’s expected release of a value allowance against deferred tax assets in certain foreign jurisdictions.
Non-GAAP
Adjusted EBITDA2 is expected to be approximately $52 million, at the top end of the prior guidance.
Non-GAAP net income3 is expected to be approximately $36 million, above the previous expectation of $31 to $34 million.
Non-GAAP diluted earnings per share3 is expected to be approximately $1.34, above the previous expectation of $1.17 to $1.29.
Q1 2024 Outlook
Total revenue is expected to be in the range of $245 to $255 million, including approximately $152 to $160 million of catch-up sales.
Operating expenses are expected to be in the range of $146 to $154 million, including revenue share expense of $66 to $69 million.
Net income1 is expected to be in the range of $70 to $85 million, or $2.50 to $3.00 per diluted share.
This outlook is based on estimates covering existing licenses, and does not include any new agreements we may sign over the balance of the first quarter.
The company has not yet finalized its financial results for the quarter and full year ended December 31, 2023 or outlook for first quarter 2024. These preliminary financial results and outlook reflect the company’s current estimates, based on information available to management as of the date of this release, and are subject to further changes upon completion of the company’s standard quarter and year-end closing procedures, as applicable. This update does not present all necessary information for an understanding of InterDigital’s financial condition as of the date of this release, or its results of operations for the fourth quarter and full year ended December 31, 2023 or first quarter 2024. As InterDigital completes its quarter-end and year-end financial close processes and finalizes its financial statements for the quarter and year-end, it will be required to make significant judgments in a number of areas and expects to receive new information including customer royalty reports for periods ended December 31, 2023. It is possible that InterDigital may identify items or receive new information that require it to make adjustments to the preliminary financial information set forth above and those changes could be material. InterDigital does not intend to update such financial information prior to release of its final fourth quarter and full year ended December 31, 2023 financial statement information and updated first quarter 2024 guidance, which is currently scheduled for Thursday, February 15, 2024.
Conference Call and Webcast Information
The company will discuss its business and outlook for first quarter 2024 at the 26th Annual Needham Growth Conference on Thursday, January 18th, 2024, at 3:00 PM ET.
InterDigital executives will also host a conference call on Thursday, February 15, 2024 at 10:00 a.m. Eastern Time (ET) to discuss the company's performance.
To access the live webcasts of these events, please visit the Investors section of the company's website. Archived replays will also be available following the events.
About InterDigital®
InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on Nasdaq.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
InterDigital signs new license agreement with Samsung Electronics
Company Release - 1/16/2024
WILMINGTON, Del., Jan. 16, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced that the company has signed a new patent license agreement with Samsung Electronics.
The agreement licenses Samsung’s digital TVs and computer display monitors under InterDigital's joint licensing program with Sony and includes licenses to key technologies including ATSC 3.0, as well as licenses under InterDigital’s patents including HEVC, VVC and Wi-Fi.
“Samsung is a recognized market leader in consumer electronics and the largest TV manufacturer in the world,” commented Eeva Hakoranta, Chief Licensing Officer, InterDigital. “I am pleased to say that this agreement is another example of a deal achieved as a result of negotiation and is another important step in our licensing of the consumer electronics industry underlining the value of our technology for this market.”
About InterDigital ®
InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. 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
If these bonds were converted to stock, would it require an SEC filing?
Thanks in advance.
Question regarding the balance of the 2024 convertibe bond issue:
The common stock has been trading above $103 for longer than 20 consecutive business days. If these bonds were converted to stock, would it require an SEC filing?
Thanks in advance.
InterDigital to Present at the 26th Annual Needham Growth Conference
Source: GlobeNewswire Inc.
InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced that the company will be presenting at the 26th Annual Needham Growth Conference on Thursday, January 18th, 2024, at 3:00 PM ET.
To access the live webcast, please visit the Events Calendar tab in the Investors section of the company's website. An archived replay of the presentation will also be available following the conference.
About InterDigital®
InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on Nasdaq.
InterDigital is a registered trademark of InterDigital, Inc.
Fish never on the wrong side of the bed. The Chinese companies cited by the German court as unwilling licensees says all that needs to be said about them. I’d they won’t license I wish they could never sell a phone. When they license I wish them well.
Sounds like you got up on the wrong side of the bed this morning! LOL
May the “unwilling” potential licensees burn in hell. Or they can license and pay IDCC’s rate with past due settlement amounts, and may they sell as many phones as they make in multiple markets.. if not they should be banned every where possible.
InterDigital lays down the law after court win vs Oppo
Even in victory, patent-licensing firm InterDigital is keen to state its case against Oppo and two of its subsidiaries.
Nick Wood January 9, 2024
Germany's regional court in Munich recently ruled in favour of InterDigital in its ongoing patent spat with the Chinese device makers, issuing injunctions against Oppo, OnePlus and Realme.
The court declared that they have infringed InterDigital's patents and – unlike InterDigital – have acted as unwilling patent licensees that have not abided by FRAND (fair, reasonable and non-discriminatory) principles.
In a statement, InterDigital's chief legal officer Josh Schmidt unsurprisingly welcomed the decision, and urged Oppo to "meaningfully engage" in negotiating a new patent-licensing agreement.
InterDigital sued Oppo, OnePlus and Realme in Germany, the UK and India in late 2021. It wants damages and injunctive relief on grounds that the three have for years been infringing its standards-essential patents (SEPs) relating to 3G, 4G, and 5G tech, and the HEVC video codec.
"Our negotiations with Oppo have taken nearly a decade and Oppo has not made a single payment for its unauthorised use of our patented innovation," said Eeva Hakoranta, InterDigital's chief licensing officer, in a separate blog post.
She described the Munich court's decision as a clear-cut verdict against Oppo that "highlights a pattern of blatant holdout behaviour," where delay tactics are used in lieu of genuine willingness to take a licence.
"We initiated this dispute against Oppo to protect the virtuous cycle of innovation and to preserve the delicate balance on which it rests by ensuring that companies like Oppo pay a fair royalty for their use of patented technology. As the negotiation history shows, we did not rush to the courtroom to secure litigation-driven leverage," Hakoranta said. "On the contrary, we actively engaged Oppo in genuine negotiations and adhered to commonly accepted principles of FRAND licensing."
However, the court's decision is unlikely to bring Oppo to the negotiating table.
When Germany ruled in favour of Nokia in its own, separate patent suit against Oppo, rather than license the protected technology, Oppo, OnePlus and Realme simply opted to pull out of Germany instead.
As a result, the Munich court issuing an injunction in favour of InterDigital is not going to affect a defendant that has already left the country.
Oppo and its subsidiaries still sell devices in the UK and India though, so rulings in these jurisdictions will be the ones to watch out for.
Oppo certainly isn't letting patent infringement suits get in the way of launching new products either.
This week it took the wraps off its latest flagship, the Find X7 Ultra. Describing it as the ultimate camera phone, it incorporates two periscope lenses. These make clever use of mirrors to enable powerful optical zoom capabilities in a compact form factor. It is powered by Qualcomm's latest Snapdragon 8 Gen 3 chip.
It also won't go on sale outside China, according to various reports which means either Oppo can't make the numbers add up, or it's wary about potentially being sued off the shelves in other markets.
https://www.telecoms.com/telecoms-law/interdigital-lays-down-the-law-after-court-win-vs-oppo
InterDigital (IDCC) Inks Panasonic Patent License Renewal Deal
Zacks Equity Research Published on January 10, 2024
InterDigital, Inc. recently inked a patent license renewal agreement with Panasonic Entertainment & Communication Co., Ltd. for an undisclosed amount. The deal extends InterDigital’s HEVC (High-Efficiency Video Coding) patent license and underscores the healthy momentum of its licensing portfolio.
The renewal of the contract will enable this Japan-based multinational electronics corporation to continue using its technology without any dispute. In addition, Panasonic extended its digital TV license under InterDigital’s joint licensing program with Sony. The patent renewal agreement will enable Panasonic to strengthen its rich portfolio of assets in wireless technologies to better serve its customers.
InterDigital’s commitment to licensing its broad portfolio of technologies to wireless terminal equipment makers, which allows it to expand its core market capability, is laudable. It has leading companies, such as Huawei, Samsung, LG and Apple, under its licensing agreements. Consequently, the company expects to generate solid recurring revenues from the patent licensing business in the forthcoming quarters as well.
IDCC’s global footprint, diversified product portfolio and ability to penetrate different markets are impressive. Apart from the company’s strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive significant value, considering the massive size of the market it licenses. Furthermore, the company remains committed to pursuing acquisitions to drive its product portfolio and boost organic growth.
The company is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. InterDigital aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its research and development capabilities, technological know-how and rich industry experience. At the same time, it intends to enhance its licensing revenue base by adding licensees and expanding into adjacent technology areas that align with its intellectual property position.
The stock has gained 77.6% over the past year compared with the industry’s growth of 4.1%.
InterDigital currently carries a Zacks Rank #2 (Buy).
https://www.zacks.com/stock/news/2208147/interdigital-idcc-inks-panasonic-patent-license-renewal-deal
InterDigital renews license agreements with Panasonic Entertainment & Communication Co., Ltd.
Company Release - 1/10/2024
WILMINGTON, Del., Jan. 10, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced that the company has renewed its patent license agreements with Panasonic Entertainment & Communication Co., Ltd. (“Panasonic”).
The renewals extend Panasonic’s license under InterDigital’s HEVC patents and also extend its digital TV license under InterDigital’s joint licensing program with Sony.
“It is always gratifying to renew our agreements with a long-term partner like Panasonic,” commented Eeva Hakoranta, Chief Licensing Officer, InterDigital. “This serves as another strong validation of the quality of our video portfolio and the importance of our innovation in today’s TV market.”
Took the word/expression right out of my head, WOW!!
InterDigital 2023 Year-End Newsletter
DECEMBER 19, 2023 / POSTED BY: INTERDIGITAL COMMS
As we close out another exciting year, we are especially proud to celebrate the continued achievement in innovation, technology leadership, and collaborations across the InterDigital team and with our industry partners. This newsletter reflects InterDigital’s achievements throughout 2023 including recognitions and industry announcements, thought leadership and state-of-the-art demos, leadership elections, industry awards, and much more.
InterDigital in the Spotlight
• This year, InterDigital was recognized by LexisNexis IP Solutions as among the Top Ten 5G Patent owners, and among the top five when analyzed on patent quality and quantity.
• InterDigital was once again named one of the World’s Top 100 Innovators in a report from Lexis Nexis. The report includes companies that own some of the world’s leading patent portfolios that possess what Lexis Nexis terms the “highest innovation momentum,” based on the company’s proprietary analytics. InterDigital was also named among the Top 100 Leaders in Sustainable Innovation by Lexis Nexis.
• InterDigital welcomed industry collaborators, local government, and academic partners for an official ribbon cutting to open the new Cesson-Sévigné office building, InterDigital’s newest and largest office. In attendance were InterDigital’s engineers and executive committee alongside local industry and government leaders, like Cesson-Sévigné Mayor Jean-Pierre Savignac.
Industry Leadership
• This year, InterDigital welcomed a new Chief People Office, Skip Maloney, who brings more than 25 years of industry experience in innovation-led companies to head InterDigital’s HR department. In addition, InterDigital’s leadership was further enhanced by naming Mang Zhu as Head of IP and Jason Wu as General Manager of InterDigital’s new China office.
• InterDigital named prolific innovators Paul Marinier and Karam Naser as Inventors of the Year, recognized for their outstanding research contributions to wireless evolution and state-of-the-art video compression standards. With more than 500 inventions between them, Paul and Karam have deeply influenced our industry through their leadership, expertise, and creative ingenuity that has unlocked new potential for 5G and beyond and immersive video experiences.
• InterDigital’s Vice President and Head of Wireless Standards Diana Pani was elected to chair 3GPP RAN2. Diana Pani is the first woman in 3GPP history to hold this role, and as chair she will foster industry consensus in the development of specifications for 5G Advanced, and next generation standards. Diana was also featured on a 4iP Council podcast exploring her unique engineering and 3GPP standards leadership journey, and wise advice for aspiring innovators. Diana was later shortlisted for the World Communication Awards Women in Telecoms Award.
• InterDigital’s Alain Mourad, Head of Wireless Lab Europe, was elected to the serve a three-year term on the ETSI Board, and was also elected Chair of the ETSI Industry Specification Group on Integrated Sensing and Communication (ISAC), an early technology building block for 6G. Aside from these responsibilities, Alain was also selected to serve on the UK Expert Working Group on Wireless Technologies.
• Doug Castor, InterDigital’s Head of Wireless Research, was re-elected Vice Chair of the ATIS Next G Alliance National 6G Roadmap Working Group, which is responsible for shaping the 6G vision and developing the technology evolution path aligned with North American priorities.
• Vice President of Standards Ralf Schaefer was elected to the DVB Steering Board. The DVB project is an industry-leading consortium that develops open technical specifications for digital media delivery. The Steering Board is responsible for setting the policy direction and handling the coordination, priority-setting, and management for the DVB Project.
• Principal Engineer Joseph Levy was elected to the IEEE Board of Governors. The IEEE Standards Association (IEEE SA) is a leading consensus building organization that fosters, develops, and advances global technologies through the IEEE and the Board of Governors directs the IEEE SA in establishing policy, providing financial oversight, and managing all IEEE standards-related activities.
• Principal Engineer Alec Brusilovsky was elected Vice Chair of the ETSI Industry Specification Group on Securing Artificial Intelligence (ETSI ISG SAI). The ETSI ISG SAI explores three key areas, including the use of AI to enhance conventional security, how to mitigate against AI-generated attacks, and ways to secure AI from attack.
• InterDigital’s Atle Monrad was re-elected to serve as Vice Chair of 3GPP’s Core Network and Terminals (CT) plenary. The CT plenary oversees the work of all core network and terminals working groups that are critical for network evolution.
• Principal Engineer Chonggang Wang was bestowed the Delaware Valley Engineer of the Year award by the IEEE Philadelphia Section.
• Samir Armaly joined the InterDigital Board of Directors. Mr. Armaly is an experienced tech executive with a deep understanding of the video services sector and global IP licensing.
• InterDigital’s Energy Aware Media team was awarded Best Full-Length Paper at the 2023 Mile High Video Conference for their paper “Energy-Aware Images: Quality of Experience vs Energy Reduction.” Written by engineers in the Video Lab, including Olivier Le Meur, Claire-Helene Demarty, Erik Reinhard, Franck Aumont, and Laurent Blondé, the paper proposes a new framework for analyzing and processing video frames that allow modern screens to use less energy when displaying these frames.
• InterDigital’s Video for Machines team, including engineers Junghyun Ahn, Jiahao Pang, Muhammad Lodhi, and Dong Tian, were awarded Best Paper at the 2023 IEEE International Symposim on Circuits and Systems show in the Visual Signal Processing and Communications track for their paper “DDA-Net: Deep Distribution-Aware Network for Point Cloud Compression.”
Partnerships and Announcements
• InterDigital signed an HEVC and VVC patent license with LG Electronics, covering a range of LG products such as TVs and PCs and also signed digital television and video patent licenses with Panasonic.
• In addition, InterDigital signed a license agreement with Lenovo covering InterDigital’s cellular wireless and HEVC video patents, and these agreements follow litigation in the UK and Germany.
• InterDigital agreed to renew a license agreement with Samsung and enter into binding arbitration to determine the final terms.
• InterDigital signed a new license agreement with Alpine Alps, covering Alps Alpine’s range of devices under InterDigital’s standard essential patents related to HEVC.
• InterDigital joined Avanci’s 5G connected vehicle patent pool as a founding member.
• InterDigital and the University Carlos III of Madrid expanded their bilateral research partnership, with InterDigital sponsoring experimental research and innovation at UC3M that explores integrated sensing and communications in next-generation cellular systems, 5G Advanced, and 6G. This research will help unlock multi-dimensional sensing information about connected devices, unconnected objects, and their movements and surroundings to support new use cases and services.
• InterDigital and the Indian Institute of Technology Kanpur (IIT-K) announced a bilateral research partnership, with InterDigital sponsoring research and innovation at IIT-K that advances MIMO (Multiple-Input, Multiple-Output) systems to achieve the improved spectrum efficiency and network coverage required for 5G Advanced and 6G network deployments. The research will support critical advancements enabling networks to scale and meet growing bandwidth and coverage demands of advanced applications like metaverse experiences, holographic communications, and digital twins.
• InterDigital and the 6G Innovation Centre (6GIC) at the University of Surrey also announced a bilateral research partnership to develop 6G enabling technologies that may impact future wireless standards. InterDigital is sponsoring research at 6GIC in technologies like integrated sensing and communication and reconfigurable intelligent surfaces (RIS), both expected to be important features of 6G.
Thought Leadership and Demonstrations
• InterDigital President CEO Liren Chen delivered a high-profile keynote at the 12th China Intellectual Property Annual Conference and was interviewed on stage at IPBC Global. He also published a letter in the Financial Times explaining why the EU should reconsider its SEP regulation to preserve the important balance of innovation. Liren was later interviewed on Live with Karen Walker, fielding questions about 5G, video, AI/ML, and corporate leadership.
• InterDigital’s CTO Rajesh Pankaj was featured as a special guest on the Telecoms.com podcast discussing topics ranging from what’s ahead for 6G, the importance of patent licensing, and the need for the next G, and his interview with Authority Magazine offered insight into his journey to becoming InterDigital’s CTO, the power of global standards and potential for 6G, and more.
• Chief Licensing Officer Eeva Hakoranta was named one of IAM’s Top 40 “Market Makers,” and she later spoke on a panel at IPBC Global.
• InterDigital Chief Legal Officer Josh Schmidt spoke at the 10th Annual IP Dealmakers Forum, detailing the state of the IP market and the highs and lows of 2023.
• At Mobile World Congress Barcelona, InterDigital showcased AI/ML-enhanced wireless XR use cases and HDR and immersive video solutions enabling next-generation connected ecosystems, Head of Wireless Labs Milind Kulkarni spoke on a panel exploring “5G, AI, and XR for New Immersive Experiences.” InterDigital CEO Liren Chen connected with Mobile World Live to discuss the trends of AI/ML, 5G and 6G, and immersive experiences across the show.
• Later in the year at MWC Las Vegas, InterDigital’s Milind Kulkarni presented at a MWC 6G conference session on “Envisioning a 6G Future,” detailing the foundation of 5G Advanced and the new capabilities that can be expected from the evolution to 6G.
• InterDigital returned as co-sponsor of the 6GSymposium Spring in London and 6GSymposium Fall in Washington D.C., driving discussions and collaborative efforts to articulate a strong vision for 6G. Head of Wireless Labs Milind Kulkarni delivered a keynote at the Spring event, while CTO Rajesh Pankaj outlined a 6G vision at the 6GSymposium Fall. InterDigital leaders and engineers participated in and moderated an array of thoughtful panel discussions with representatives across government, academia, and industry.
• InterDigital demonstrated at AWE USA 2023 alongside Philips to showcase how volumetric video-based codecs and creation pipelines enable increasingly immersive and XR-driven volumetric video experiences. The partners demonstrated the application of their codec and content creation pipelines for use cases like telelearning.
• At IBC, InterDigital showcased cutting-edge video innovation, including an array of research contributions to video codecs, advanced HDR solutions, and pioneering innovations in energy aware media technologies at the Media Coding Industry Forum (MC-IF) and Ultra HD Forum partner booths, and the IABM Lounge.
ESG and Social Engagement
• In addition to being named one of the Top 100 Leaders in Sustainable Innovation by LexisNexis, InterDigital’s 2023 Corporate Sustainability Report outlines our commitment to Environment, Human Capital, Social, and Governance (ESG) principles and progress in these areas.
• For the second year, InterDigital and Temple University awarded the 2023 William J. Merritt Student Fellowship Award, this year to recipients Mikiko Galpin and Kemberly Viveros. Granted in honor of InterDigital’s former president and CEO and Temple Law Alumnus Bill Merritt, the fellowship provides financial and mentorship support for Temple Law students exploring topics at the critical intersection of technology and law.
• At InterDigital, we lead and contribute to initiatives that help address the growing energy demands of video, while continuing to encourage innovation in cutting-edge compression solutions. These blogs introduce InterDigital’s unique impact in video sustainability through novel innovations and standards leadership roles, and detail our efforts to encourage greater energy awareness.
• For World Standards Day, InterDigital President and CEO Liren Chen penned a blog about “Unlocking the Sustainable Power of Standards,” and later detailed how standards promote sustainable innovation.
• InterDigital’s Bike the Bay MS Fundraising team, raised more than $50,000 on a 75-mile bike ride to raise money and awareness for multiple sclerosis.
Reports and Blogs
• Spotlight on HEVC: The Codec of Choice for the Video Streaming Industry: This report commissioned by InterDigital and written by Futuresource Consulting, looks at HEVC’s development, how it enables higher quality video for subscribers, examines HEVC’s increased usage among the streaming giants, and looks at what’s next for codecs in the rapidly evolving delivery of video content.
• The State of 5G-Advanced: Empowering New Verticals and Industries: A new report commissioned by InterDigital and written by ABI Research, outlines the development of 5G-Advanced and its new features that will see enhancements to existing 5G technology over the next three years (2023-2026). 5G Advanced will be 5G’s transformational phase and improve existing specifications while also introducing new features that aim to optimize network operations and pave the way for innovative enterprise use cases and business models that have not been feasible with earlier generations.
• Defining the XR Experience: Enabling the Immersivity Ecosystem: This white paper commissioned by InterDigital and written by ABI Research details the standards, solutions, and emerging challenges shaping new extended reality (XR) opportunities. While consumer adoption of XR headsets and services has been relatively slow, the report points to improvements in device hardware, content capture, encoding, and XR-specific content distribution capabilities as critical components to fuel future growth of the XR market.
• Strengthening UE-EU Cooperation on Technical Standards in an Era of Strategic Cooperation: InterDigital supported a paper written by the German Marshall Fund of the United States that explores how key global standards like cellular wireless can be preserved in an era of heightened geopolitical tension.
• Experience the Future of 6G: A New Direction for Telecom: This joint study from InterDigital and Omdia highlights the need for a new quality of “personal” experience (QoPE) framework and metrics to measure the success of 6G-enabled services that will unlock new possibilities for users and operators alike.
• The Evolution of Compression in a Video-First Economy: This white paper commissioned by InterDigital and written by Futuresource Consulting, examines the foundational nature, state of evolution, and critical features of codecs and video standards. The paper outlines the development path of video compression codecs that have been proven critical in reducing bandwidth and improving efficiency in the delivery of the data dense video services and entertainment we all enjoy.
• AI is the Key for 5G Success: A new paper released by InterDigital and written by ABI Research examines the network domains and standards efforts where AI and ML are being integrated to automate critical 5G operations.
• At MWC Vegas, InterDigital Outlines an Innovative and Evolutionary Journey to 6G: In a conference session titled “Envisioning a 6G Future”, Milind Kulkarni detailed the importance of standards in evolving our communications capabilities and introduced InterDigital’s 6G vision and the new uses cases and applications that will be enabled by even faster speeds, lower latency, and enhanced capacity under the next G.
• Integrating Sensing and Communications: A Key Building Block for 6G: Alain Mourad, the recently elected Chair of the ETSI ISG on ISAC, introduces this newly identified, revolutionary feature of 6G that will unlock new capabilities by innovations to devices and the networks on which they operate.
• Interns at InterDigital: Throughout 2023, InterDigital Video Lab welcomed dozens of brilliant interns and researchers to explore and contribute to the industry-shaping research and innovation led at InterDigital. This blog series introduces InterDigital’s world-class engineers and their exciting research in Vision for Machines, 2D Video Standards and Solutions, and Immersive and Metavideo Standards.
• In high-profile speech InterDigital CEO emphasizes the close links between innovation and IP licensing: InterDigital CEO and President Liren Chen delivered a keynote speech at the China IP Annual Conference in which he highlighted the strength of InterDigital’s innovation in areas like 5G, the company’s leadership in the standards community, and why it’s important to take account of patent quality when analyzing a company’s IP portfolio.
• InterDigital at MWC 2023: In Barcelona, InterDigital was pleased to welcome a variety of visitors to experience our innovative research and industry collaborations that leverage AI/ML to enhance wireless network behaviors beyond 5G, provide rendering and delivery solutions for high quality HDR content, and shape standards for immersive and sensory-enhanced video experiences.
• Exploring the Role of Static Diffuse White Feature for Effective Graphics Management: InterDigital and Philips collaborate on Advanced HDR solutions to address the transition from SDR to HDR content and InterDigital’s Valérie Allié and David Touzé detail how our suite of solutions addresses the challenge of delivering live HDR and SDR content so that all audiences receive the highest quality video, regardless of their device type.
• How patent holdout is moving up the agenda: An event held at the University of California Berkeley Haas School of Business reflects how discussion around the topic of patent holdout is moving up in importance in academic discussions.
• AI at the Edge: Fast Times Ahead for 5G and the Internet of Things: InterDigital's Milind Kulkarni contributed to a recent ZDNET article highlighting 5G's potential and the dramatic impact AI can have on the reliability and efficiency of wireless networks.
• Strategising 6G: 6G represents more than "faster 5G" because it brings sensory capabilities expected to include complex analytical insights, distributed control over more connected objects, and an expanded range of digital-human interactions. InterDigital's Jeffrey Metzger outlines in FEED Magazine the strategies for 6G and what a high-quality 6G experience might look like.
• World IP Day: Celebrating InterDigital’s Female Inventors: While the theme for World IP Day 2023 is “Women and IP: Accelerating innovation and creativity,” the World Intellectual Property Organization (WIPO) notes that: “Too few women are participating in the intellectual property system [which] means too few women are benefitting from IP.” This year, we spotlight a few leading female inventors from InterDigital’s Wireless Lab and Video Lab, and recognize the importance of supporting more women in IP.
• What is 6G?: InterDigital's Milind Kulkarni joins wireless experts in describing to Telecoms.com what 6G will be capable of, and what lessons can be drawn from the 5G rollout.
• How InterDigital’s Video Solutions are Encouraging Greater Energy- Awareness: At InterDigital, we lead and contribute to several initiatives that help address the growing energy demands of video, while continuing to encourage innovation in cutting-edge solutions. InterDigital’s impact is shaped by leadership in energy-aware technologies, video codecs, and standards.
• The Importance of Making 6G experiences Human Centric: InterDigital’s Senior Staff Engineer Chathura Sarathchandra spotlights for TVB Europe the critical importance of seamless user experiences when promoting the benefit of sensory 6G, and the need for new language to define the quality of the physical experience for users.
• 5G at the Edge: Edge computing is a critical technology that will both supplement 5G capabilities and complement 5G networks. As more applications and use cases are enabled by the edge, InterDigital’s Robert Gazda detailed the key benefits and new opportunities made possible by our innovative contributions in this space.
• How InterDigital Leads in Video Sustainability: InterDigital’s portfolio of technologies include solutions that help the video entertainment industry achieve more sustainable outcomes without impacting visual quality. InterDigital’s energy-aware advocacy has been acknowledged across industry circles and in global standards bodies such as ITU-R, MPEG, DVB, ATSC, and SMPTE, and InterDigital engineers are often consulted for their expertise and understanding of sustainability considerations.
• What content owners should consider when delivering SDR and HDR content: InterDigital's Vice President of Technology Alan Stein shares his perspective on the elements that content owners and aggregators should consider when implementing solutions that help manage the complexity of delivering both SDR and HDR content.
• Minimizing the Environmental Impact of Broadcast and Streaming Technology: InterDigital’s Erik Reinhard’s article with TVTech introduces the innovations helping to make sustainability in broadcast and streaming media more achievable.
• International Arbitration: The Best Practice for Resolving Global Licensing Issues: InterDigital began the year with major licensing announcements, including plans to enter arbitration with Samsung to determine the final terms of a new license, and InterDigital's Chief Licensing Officer Eeva Hakoranta reflects on why arbitration is in many cases the best way to resolve patent license disputes.
• AI in Wireless eBook: InterDigital’s ebook looks at the impact AI/ML is having on wireless technology and how it will affect the networks of the future.
• What is 5G?: This Telecoms.com article dives into the specific features and applications that define this latest wireless generation, with expert insight from InterDigital's Ghyslain Pelletier alongside other industry leaders on what is 5G.
• Capturing the Edge Computing Opportunity in 5G and Beyond: InterDigital's Robert Gazda shares with VanillaPlus a few use cases where the fusion of edge computing and 5G will transform how people engage with technology and how businesses operate.
• What is the reality of 6G and how will it impact people?: InterDigital's Donald Butts shares with Mobile Europe what we know about 6G and the ways it might cater to infinitely more connected sensory devices, wireless sensing, and localization technologies.
• How Standards Promote Sustainable Innovation: InterDigital and our peers are increasingly focused on the need to make networks and products more energy-efficient and are exploring ways to incorporate energy reduction features into industry-wide standards. On World Standards Day, we reflected on how standardized technologies can help shape a more sustainable future.
https://www.interdigital.com/post/interdigital-2023-year-end-newsletter
A question for the board techies. Is Interdigital’s video tech imbedded in Apple’s new Vision Pro reality headset due to debut soon?? I would find it hard to believe if it is not. TIA
Gamco,
The difference between now and 10 years ago is that the infringers could file endless appeals to FRAND rate decisions. That strategy has apparently run its course! IDCC should be revalued at much higher prices to reflect that reality.
IMHO - Tomcat
InterDigital awarded injunction against OPPO, Realme and OnePlus
January 08 2024 - 06:00AM
InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced it has acted in a FRAND manner, and that OPPO, Realme and OnePlus are unwilling licensees who have not acted in line with widely recognized FRAND principles.
“This resounding victory is another example of the quality of our innovation and our leadership in licensing standardized technologies such as 5G,” commented Josh Schmidt, Chief Legal Officer, InterDigital. “Having been determined to be an unwilling licensee by the court in Munich we urge OPPO to now meaningfully engage in negotiations and to take a fair and reasonable license to our patented innovation.”
You can learn more about the decision here.
About InterDigital®
InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. 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
An update on our dispute with OPPO
An update on our dispute with OPPO
JANUARY 8, 2024 / POSTED BY: EEVA HAKORANTA, CHIEF LICENSING OFFICER, INTERDIGITAL
Shortly before Christmas, InterDigital won a significant court victory against OPPO in Germany as part of our pursuit of fair and reasonable compensation for our patented innovations.
The Munich Regional Court I ruled that InterDigital has acted in a FRAND manner, that OPPO infringed InterDigital’s 5G patent in suit, that OPPO is not a willing licensee and thus has not acted in a FRAND-compliant manner, and that InterDigital should receive injunctive relief in the German market. In short, it was a clear-cut verdict against OPPO and highlights a pattern of blatant holdout behavior which, unfortunately, has become all too familiar for innovators in standardized technologies like cellular wireless. OPPO does have the right to appeal this judgment.
The German case is just one part of our ongoing dispute with OPPO but, given the court’s stern criticism of OPPO’s behavior, I thought I would take this opportunity to provide an update on where we stand in our fight to be compensated fairly for our innovations.
No evidence of willingness from OPPO
Among several key takeaways, the Munich verdict showed once again that FRAND licensing is a two-way street. It is not just the SEP owner who should be expected to drive negotiations and to show a willingness to conclude a license on FRAND terms. The infringer must also demonstrate a clear commitment to negotiating in good faith and, in respect of this obligation, OPPO has been shown to be severely lacking.
In the part of the Munich verdict, which is perhaps most critical of OPPO, the three-judge panel reiterated that the infringer must clearly and unambiguously declare its willingness to conclude a license agreement with the patentee on reasonable and nondiscriminatory terms and must also subsequently participate in the license negotiations in a targeted manner. Our negotiations with OPPO have taken nearly a decade and OPPO has not made a single payment for its unauthorized use of our patented innovation. The judges also wrote that, “…taking into account the entire history of negotiations to date, a genuine willingness to negotiate and take a license on the part of [OPPO] cannot be established.”
OPPO’s track record demonstrates that its primary target is delay. As the Munich decision points out, "the lack of or delayed reactions by OPPO to the offers made by InterDigital, show that OPPO was not truly willing to contribute to bona-fide license negotiations.” According to the Munich court, OPPO has "impressively shown in the present proceedings how patent infringers practice hold-out by constant requests for comparable license agreements while at the same time, by doing so, trying to obfuscate their lack of willingness to take a license.”
In addition, the court ruled that OPPO’s counteroffers were unFRAND because they were based on rates that are significantly less than its licensed competitors are paying and assumed an average sales price for infringing devices that is well below the market.
The court also dismissed OPPO’s attempts to rely on the decision from the UK’s High Court in our dispute with Lenovo. This decision was ruled not to apply here because our LG agreement, on which the UK High Court based its determination, is limited to cellular SEPs, expired in 2020, and does not include 5G, and because the decision does not contain any discussion of German FRAND case law. Additionally, our negotiations with OPPO are for a license to a broader set of technologies than the Lenovo UK decision covered.
We initiated this dispute against OPPO to protect the virtuous cycle of innovation and to preserve the delicate balance on which it rests by ensuring that companies like OPPO pay a fair royalty for their use of patented technology. As the negotiation history shows, we did not rush to the courtroom to secure litigation-driven leverage.
On the contrary, we actively engaged OPPO in genuine negotiations and adhered to commonly accepted principles of FRAND licensing. I am particularly pleased that the Munich court has seen through the constructive refusal of OPPO to take a license and recognized that InterDigital´s behavior has been consistent with FRAND through the long course of negotiations.
A broader message
I also want to take this opportunity to reflect on what this verdict means for a broader audience, particularly those currently engaged in discussions over a new SEP regulation within the European Union.
Too often when SEP licensing is debated by policymakers, the spotlight overwhelmingly falls on the actions of SEP-owning innovators – likely because implementers are in the majority and drown out the voice of the innovation community. And yet, as several court decisions have demonstrated, it is so often the behavior of large and powerful implementers that is shown to contravene widely accepted FRAND principles.
As it is currently framed, the EU’s regulation does not address widespread holdout in any manner and would further tip the balance of power on the continent between innovators and implementers firmly in favor of the latter, benefiting the likes of OPPO and other device makers who are not based in Europe.
Innovation, such as 5G and advanced video compression, should be nurtured and protected in a way that both rewards innovators and allows technologies to be implemented in consumer devices. FRAND licensing is a vital part of this ecosystem and, as our resounding court victory in Munich shows, InterDigital is committed to negotiating on fair and reasonable terms.
Following this clear verdict I hope that OPPO now genuinely engages in negotiation and does not simply pay lip service to FRAND. Innovators and implementers have much more to gain by working together to deliver ever-more advanced technologies to consumers.
Paullee thanks for all of the legal case updates.
Paullee,
Sounds like bad news for the SHORTS!
Tomcat
Paullee - Thank you sir! EOM
Thanks Paulee for posting this good news.
InterDigital prevails against Oppo and OnePlus over SEPs in Munich
InterDigital could recently celebrate two successes in its ongoing dispute with multiple mobile phone manufacturers. After the Federal Patent Court upheld a SEP with restrictions, the Munich Regional Court ruled that Oppo and other patent users were infringing the same patent with their products.
https://www.juve-patent.com/cases/interdigital-prevails-against-oppo-and-oneplus-over-seps-in-munich/
Scooby,
A PERFECT setup for overextended shorties to borrow and sell more to try to bring the price down for a rescue. Doubling down on their original trade. The hard part for them is buying back those borrowed shares without raising the stock price.
In the face of continually improving fundamentals for IDCC, and a low valuation (in part a relic from the past management team), keeping the stock price down is going to only get more difficult as time goes on.
IMHO - Tomcat
Low volume and downward pressure the last several days. Down over $7 from our high. Wonder if the company is still buying back shares.
Paullee - Thank you for posting Lenovo's recent filing in the NC legal proceeding. Lenovo's position is so contorted (IMHO) that they have a better chance of winning a suit against their own legal counsel for malpractice than they have against InterDigital for any patent matters. This should weigh against Lenovo in the appeal that IDCC has begun in the royalty rate setting suit by prompting those decision makers to lean towards triple damages. (JMHO)
Paullee, in short, Lenovo suggests that they should not have to pay anything for a company's paint (or at most very little) if that company itself is not a painter. For this example, Lenovo is the painter, Interdigital supplies the paint (as if that wasn't obvious).
Happy New Year!
If you really want to know what Lenavo thinks of IDCC.
enjoy the read
https://storage.courtlistener.com/recap/gov.uscourts.nced.204398/gov.uscourts.nced.204398.47.0.pdf
Fish, I'm confident that nobody at Interdigital who would take our calls as investors can thoroughly explain all of the nuances of the senior convertible notes. The company's legal counsel may not even know for certain what could happen if it's challenged in any way.
Here is the company's press release: https://ir.interdigital.com/news-events/press-releases/news-details/2022/InterDigital-Announces-Upsize-and-Pricing-of-Private-Offering-of-400-Million-of-3.50-Senior-Convertible-Notes/default.aspx
Good luck with it.
Badger
I should also note that there was no consideration given for the interest they received if they had invested that $126,200,000 principal for the last 5 years which would make the numbers look a lot better.
Got it all figured out by myself. Now if I knew how to post spreadsheet data to here I could show everybody. Basically, IDCC needs the stock price above $99.92(break even price) to come out ahead dollar wise on the Call Spread transaction. Max cash profit possible is $14,766,407 with stock price on date of conversion at or above $109.43. Max loss is approximately $28,920,000(cost of loan plus interest) if stock is below $81.29.
If they covert the call spread to shares the max number of shares IDCC would receive is 399,218 shares with the stock price closing at $109.43. The number of shares they would receive goes down on either side of that closing price. Effectively, the best they would be doing is coming out paying $72.44/share at that conversion closing stock price once you consider their costs involved in this total transaction. The cost per share would go up considerably on either side of that closing price.
So, even though they can make a max profit of $14,766,407 by taking the cash, the best they can do by converting the shares is $72.44. The bad thing is, they could have bought the shares on June 3, 2019(when Call Spread was initiated)for $64.58.
This all assumes they are paying back the principal in cash as stated in the 10q.
JEALMC79 and VEGAS OPTIONS:
Why not awns youe questions directly to INVESTOR SERVICES AT IDCC.
They are the ones who should be able to give you the true details on the convetibles. After all, they should know because it is all about them!
jmo
this exchange of viewpoints enriches us all
may it continue into the new year
At the conclusion, IMO and correct me in how I am wrong, as of the September 30, 2023 valuation, IDCC will have added over $675 million in cash to the balance sheet according to the total Fair Value amount for both convertible notes.
The 2027 Notes will be convertible into cash up to the aggregate principal amount of the notes to be converted and in respect of the remainder, if any, of the Company’s obligation in excess of the aggregate principal amount of the notes being converted, pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination thereof, at the Company’s election,
Maybe you should think about changing your name.
jealmc79, I guess life is good on planet jealmc79
in your world Mr. X buys the convertibles and takes the stock and does not want to sell.
Mr. Y sold IDCC the calls. IDCC calls in the option. Where does Mr. Y get the stock as institutions own over 100%. Not only that Mr. Y sold IDCC the 2027 calls. He now has to come up with over 20% of the company.
Why would IDCC bother with a Dutch Auction?
They could just buy calls.
The only true call in this are the warrants.
badgerkid, In the last 2 years they have bought back 5.4 M shares up to November 1, 2023.
jealmc79, in your world Mr. X buys the convertibles and takes the stock and does not want to sell. Mr. Y sold IDCC the calls. IDCC calls in the option. Where does Mr. Y get the stock as institutions own over 100%. Not only that Mr. Y sold IDCC the 2027 calls. He now has to come up with over 20% of the company. Why would IDCC bother with a Dutch Auction? They could just buy calls. A year ago May IDCC bought over 1 M shares from a hedge fund. Instead IDCC could just buy calls. Theoretically IDCC could buy the whole company by buying deep in the money calls. The only true call in this are the warrants.
Vegas, isn't the company through it's share repurchase now fully hedged against the warrants? It appears that there are more than enough shares in treasury to satisfy all warrants.
https://www.warrants.com.sg/eduhtml.howdomarketmakershedge
My personal view of the recent exchange on this board:
https://www.google.com/search?q=check+me+if+i%27m+wrong+sandy&rlz=1C1CHBF_enUS838US839&oq=check+me+if+i&gs_lcrp=EgZjaHJvbWUqBwgAEAAYgAQyBwgAEAAYgAQyBggBEEUYOTIICAIQABgWGB4yCAgDEAAYFhgeMg0IBBAAGIYDGIAEGIoFqAIAsAIA&sourceid=chrome&ie=UTF-8#fpstate=ive&vld=cid:7523d45b,vid:g79mLV9b30c,st:0
IT IS NOT A CALL OPTION
jealmc79, IT IS NOT A CALL OPTION
If the bonds are converted the $126M is IDCC money. They do not pay it to anyone.
jealmc79, NO IT DOES NOT. When the bonds convert, they choose either the money or the shares. If they choose the shares IDCC keeps all the money.
jealmc79, If the bonds are converted the $126M is IDCC money. They do not pay it to anyone.
IDCC will have added over $675 million in cash to the balance sheet according to the total Fair Value amount for both convertible notes.
The simplest way to understand it is the bond conversions are conversion price (which goes to cash on conversion) + hedge ( whatever the stock price is on the day of conversion minus conversion price ) . Then you get $109.43 times the number of warrants exercised. That is how you get about $110 per share.
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