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Anybody seen any news this morning? Pre-trades down 10%.
Part of a larger article on Frand during 2023
The English judiciary sought to establish more transparent conduct in SEP licensing negotiations.
In March, the High Court of Justice of England and Wales issued a FRAND determination in InterDigital Technology Corp. v. Lenovo Group Ltd., a multipatent infringement litigation in the U.K.
The court primarily used a comparable license approach to derive a rate for InterDigital's worldwide portfolio of 2G, 3G, 4G, Wi-Fi, and high-efficiency video coding patents, and did not rely at all on a top-down approach,[10] even though this methodology had been used more extensively in prior U.K. decisions such as Unwired Planet International Ltd. v. Huawei Technologies Co. Ltd. as a cross-check.
The court also rejected InterDigital's use of a "hedonic price regression."[11] InterDigital had sought royalties of between $1 and $2 per device, but the court determined a rate of just $0.175 per device.[12] That said, the court imposed this royalty rate over a 16-year period notwithstanding national statutes limiting patent damages.[13]
Additionally, the court made several notable comments lamenting the lack of transparency in SEP licensing discussions, including: "It is not FRAND nor is a licensor acting as a willing licensor if it refuses to provide the information necessary for a willing licensee to evaluate an offer which has been made."[14] In relation to this, the court noted that Lenovo was justified in seeking information about InterDigital's licenses with others, and that "it is clear to me that InterDigital's reliance on the confidentiality of the PLAs [patent license agreements] with companies like Samsung, Apple, Huawei and LG was less than helpful, let alone transparent."[15]
After the decision came down, InterDigital filed new patent infringement litigation on the video coding standards against Lenovo in multiple jurisdictions despite the U.K. judiciary's rate-setting determination. That litigation is ongoing, notwithstanding that InterDigital and Lenovo agreed to a multiyear license covering InterDigital's high-efficiency video coding patents.[16]
Read more at: https://www.law360.com/articles/1778635/the-year-in-frand-what-to-know-heading-into-2024?copied=1
Since 1989 for me, a King of Prussia boy. I still have my Ultraphone pin, a small pile of IDC annual reports, and memories of Harry Campagna at the annual meetings at various King of Prussia hotels where they always had Tastycakes and soft pretzels. I have about a quarter of my shares remaining, surrendering some of my shares last week. And yes, I have seller's remorse.
I will never totally relinquish my IDCC shares. I will take some to the grave with me as, at this point, it's personal.
Price is going down with the market
Still here..but not as much as before..will hold the rest till the end...
Me too for over 10 years. 1st post
When Interdigital lays out its case you’re vision may be correct. To many loose ends from that last judgement.
Leave before achieving the full IDCC potential, never.
tbt 00 son't you mean 'Squealing' when they have to cover ! ! !
OK Mickey (his favorite line) ! LOL all the way to the bank (finally) ! ! !
Macc14,
I agree! Also, the shorts will be screaming as they buy!
IMHO - Tomcat
Over 35 years here. Still quite long and thankful to you all for your inspiration and messaging.
I am still here, but I believe it is time to be quiet so long as the company continues pitching a no-hitter versus the shorts.
mo
loop
The ride since May has been spectacular!
Still here after 23 years, still holding 100%, and enjoying the ride.
Also still here with about a third of my total holdings. Enjoying the ride.
Regarding Lenovo - I'm interested in hearing any speculation involving what lays ahead. The HEVC license was great and should simplify (to some small extent) negotiations. But IDCC's appeal regarding the royalty rates for past usage could be a wildcard. I can envision another $100 million+ (JMHO).
I am still here, with about a quarter of what I once had. I Know my brother got very frustrated with the old management and got out. I suspect he was not alone.
This used to be a very active board. Wonder if there are not nearly as many individual investors here as there used to be.
A new all time high and all is quiet
in think WE ...including myself at the top of the list....pay way too much attention to the shorts machinations....except when it comes from playing dirty pool [see BOA analyst]....the company has done everything they can do to prevent dilution of our shares...and now it seems they are finally delivering on the dollars...at some point were gonna have 50% cash as pct of mkt cap....no debt and growing business....thats what should scare the shorts!!!
cat...yes and no....if they are held in a margin account...even if not on margin...they can be lent...if they held in an ira...they're not supposed to be lent w/o an hypothecation agreement signed from the customer.......but those two instances...are in the DEEP minority...95% of shares are owned by institutions...who lend....THE MOST INTERESTING buyer is when the company makes night night by buying the shares...and putting them to sleep
tnyellowtomcat, I was told once before that if you DO NOT WANT your shares to be lent out, instruct your broker
OR
put a sell order in, all or none, good until cancelled, at some high sales price that would put them out of reach or at some price that you would not mind selling out and taking the profit.
Your broker may limit the 'GOOD UNTIL CANCELLED' timeframe to somethine reasonable (say 6 months), at which time it would be dropped (but I am not sure of this or not).
Maybe someone can clarify this for all.
Vegas,
If so, this would seem to lead to the short players "Swimming without swimsuits," - a phrase I believe attributed to Warren Buffett in reference to overextended players!
Tomcat
Vegas - a observation and question?
If someone borrows IDCC shares and sells them to be short, does the buyer on the other side of the short transaction have IDCC shares that his broker can in turn lend out for someone else to sell to be short? Is this like the fractional reserve system in banking, where one loan then triggers multiple loan and deposit transactions?
Thanks - Tomcat
Today have we already suffered our daily trough of late but now on to a new 52-week high. Rhetorical question, we shall see at close today.
i have no freaking idea at this point........im just an innocent bystander on this crazy ride!!
Teepee, Is there a gravitational pull towards $103.00?
big cat....idc is easy to borrow because it is almost completely institutionally owned...institutional accounts freely lend their shares....via a complete lending program for all their holdings.....as far as im concerned....thats the trap for the shorts....if it was trading at a high rate in the lending market....the shorts might take pause before shorting more....also i think the big increase in short interest is somehow tied to the converts....as they are now completely in the money...even past the collar price which i think was 103...which idc sold to avoid the dilution at the stated conversion rate
tnyellowtomcat, as of close there was still 200K shares available to borrow.
Triple Witching volume for IDCC over 1.7M shares now.
Over 1.1 million shares traded to the upside. Let’s hope some good news is about.
Scooby,
I am wondering how hard IDCC stock is getting to borrow. What interest rate do shorts have to pay?
Last time we approached $100 and pulled back, the short interest increased. Seemingly trapped shorts were able to (temporarily) save themselves by strategically shorting more shares on low volume days. I would bet that is harder to do now, that short interest is higher & with a increased company share buyback budget.
My thoughts - Tomcat
Sconby hopefully the price is due to a short roast party.
Any thoughts on the volume today and the price spike towards the end of the day?
Monterey2000 - Thanks for posting this.
Sammdogg1 - Thanks for posting this, much appreciated.
Vegas ..it has nothing to do with anybody In particular.. as convertibles come into the money....they become in the money options...and are subject to the options community's money machine....see ...susquehanna!!
scooby5, IDCC can not buy in the first 30 minutes or the last 10 minutes. They are limited to a maximum of 25% of the average share count.
Who decides when Idcc is actively buying back shares on any given day? Is there a limit to the number of shares per day?
I like the playing field better in the UK. However, even the PTAB poured Tesla out recently in its challenge of another company's patent. Musk claims Tesla patents are free and open to the public and everyone should allow his use for free.
MO
loop
teecee56, I do not. In order for Goldman ( or their client) to claim $1.5B investment in their #10 stock they have to own all the converts and warrants along with the 420K shares. Why would you short against your position and not just sell your shares? The 2024 warrants will cost them $109.49 each. Why would you try to make them worthless? I believe their customer would not be allowed to buy IDCC so this has been a long term play to have less than 50% yet have passive control. We will know by August at the latest as whoever has the 2024 converts and warrants will have to file as a 10% owner.
InterDigital CEO hails Apple deal but firm not yet committed to Avanci 5G programme
William New and Angela Morris
04 November 2022
InterDigital CEO hails Apple deal but firm not yet committed to Avanci 5G programme
The close to $940 million licensing deal that InterDigital secured with Apple, which was announced last month, was hailed by the firm’s CEO Liren Chen on an earnings call yesterday. The agreement, which runs until 2029, represents a 15% increase over the previous one.
“Our new deal with Apple is a huge validation of both the quality of our innovation and the strength of our patent portfolio,” Chen stated. “I would also add that Apple is a clear leader in the roll-out of 5G, particularly in the premium tier of the smartphone market, so this deal serves as a resounding endorsement of the strength of our portfolio.”
However, while recognising the growing contribution of royalties from the auto sector via Avanci, the firm is not yet committed to the platform’s proposed 5G programme.
The Apple renewal, reached without litigation, carries no variable cost so essentially represents 100% gross margin, making it “the most valuable contract we have ever signed in our 50-year history”, Chief Financial Officer Rich Brezski said on the call. The revenue will begin to show in the fourth quarter.
The third quarter results, with 8% growth year-on-year giving it the sixth consecutive revenue increase in consumer electronics, IoT and automobiles, “once again demonstrate how our innovation is becoming more valuable in an increasingly connected world”, said Chen. During that time, it signed licence agreements with Vizio, Sony, Amazon and others. Due to confidentiality, details of scope of the licence could not be shared.
The company has signed 16 agreements over the last 18 months with a total estimated contract value of more than $1.5 billion, it reports.
Quarterly recurring revenue increased 8% to $101.0 million, compared to recurring revenue of $93.4 million in third quarter 2021, according to company release. The company increased recurring revenue in both its smartphone (up 4%) and CE, IoT/auto markets (up 60%).
There was scant mention of InterDigital’s next big renewal, which will be with Samsung, whose current deal finishes at the end of the current quarter. However, there was no indication of any problems, with Chen stating: “So far [in the] Samsung negotiation, we have been negotiating mobile opportunity renewal, as well as consumer electronics (primarily TV) in parallel.”
Automotive sector driving growth
InterDigital’s aggregate annual recurring revenue for consumer electronics and IoT/auto has risen approximately 140%, from $23 million in first quarter of 2021 to more than $54 million in the third quarter of 2022.
Including catch-up payments from past infringement, the firm has reported approximately $75 million in total revenue from these markets in the last nine months, Brezski said. By comparison, Nokia recently reported revenues of $101 million in non-traditional areas such as automotive and consumer electronics.
InterDigital’s growth in the consumer electronics and automotive sectors is on track to deliver annual revenue this year of nearly $100 million. “This is excellent progress and underlines our belief that our innovations are only become more critical across a growing number of industries,” Chen said.
Chen highlighted progress in the auto sector and the licensing success that had been achieved via the firm’s membership of the Avanci platform. “In the third quarter, automobile was particularly strong with several manufacturers, including Toyota, Honda and Nissan,” he said. “All took a licence to our portfolio of 3G and 4G patents through our licensing partner. These agreements mean that more than 100 million connected vehicles are now licensed to our 3G and 4G technology, with another 30 million to 40 million forecasted to be licensed in the next year.”
However, when asked about whether InterDigital will be going it alone on 5G in the auto sector or joining Avanci’s planned programme, Chen was non-committal. “We are actually ready for either approach. But we see a lot of incremental value of 5G enabled connected cars on top of the 3G, 4G,” he said.
Looking forward
Asked by an investor about streaming opportunities, Chen replied that through its own R&D and the acquisition of Technicolor InterDigital has built a strong pipeline and has one of the strongest video patent portfolios in the industry. "We have done a lot of work designing our licensing programme in that space. We are optimistic about the opportunity, but it will take time to grow," Chen stated.
Although this is a period of significant economic uncertainty, Chen stated that InterDigital may be better situated than most in the industry to weather any storms as 80% to 90% of the firm’s licensing agreements are fixed fee and long-term (five years and above). However, he added that the firm is “not completely immune” when it has renegotiations for renewals.
Wow. Data Rox. Blast from the past. Godspeed.
Below is a comment about the IAM Media article from Joff Wild on Linkedin. His comments potentially explain why Liren Chen is not fully committed to Avanci for 5G technology. Joff Wild is the Former editor-in-chief of IAM and World Trademark Review, now focusing on IP consultancy work with an emphasis on policy, strategy, business development, communications and marketing. The same article is linked below his comments but still cannot access without creating a login.
My bolded red text added.
vegas....i would think some of this short activity is definitely tied to the converts at this point
Does anyone have access to this article?
InterDigital CEO hails Apple deal but firm not yet committed to Avanci 5G programme
William New and Angela Morris
04 November 2022
https://www.iam-media.com/article/interdigital-q3-2022-earnings-apple-avanci
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