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TORONTO, ON / ACCESSWIRE / September 20, 2024 / Tacora Resources Inc. ("Tacora"), a high-grade iron ore concentrate producer announced today that it has closed its sale transaction led by an investor group consisting of Cargill Incorporated, Millstreet Capital Management, O'Brien-Staley Partners and Brigade Capital Management LP.
"The closing of this transaction marks a pivotal moment and a transformative phase for Tacora's future," said President and Chief Executive Officer Brian Penney. "Our entire team is excited to have the resources to execute our production and investment plans. With a new and powerful investor group, we look forward to driving value for all stakeholders as we execute our multi-year capital investment and ramp-up plan to achieve historic name-plate production of 6 million tonnes per annum of high-grade iron ore concentrate."
Tacora emerges from the Companies' Creditors Arrangement Act (Canada) ("CCAA") process with a $250 million equity injection, a strengthened balance sheet, and an improved business plan. As a result of the CCAA restructuring, Tacora benefits from several new competitive advantages:
BoA not impressed, keeps target at 100- says the future has to be proven
Roth MKM raises target to 160 from 146
sounds good on paper, why can't they close a deal 🤔
Dividend bump to .45/qtr
show me the money!!!!!!!
InterDigital gets grant for wireless resource selection based on channel busy ratio measurements
https://www.verdict.co.uk/interdigital-gets-grant-for-wireless-resource-selection-based-on-channel-busy-ratio-measurements/?cf-view
if it was, they would have to announce it
Meet InterDigital’s top licensing lawyer
Angela Morris
16 August 2024
Share
Meet InterDigital’s top licensing lawyer
InterDigital Chief Licensing Counsel Julia Mattis/courtesy photo
InterDigital Chief Licensing Counsel Julia Mattis was the chief negotiator and lead attorney for InterDigital when it struck its largest licensing deal of all time.
In September 2022, Apple agreed to a seven-year patent licence worth $938 million total (or $134 million per year). Apple first licensed InterDigital’s patent portfolio in 2007, and it renewed in 2016 (Mattis also handled this negotiation) and 2022.
“With Apple, we’ve had a relationship with them for many years. I think they see the value in our portfolio and what it brings to their business. In the end, I think that helped get the deal over the finish line – and helped get it done before it expired,” she states in an exclusive IAM interview.
We spoke with Mattis as part of our new series on Women in IP. We learned more about her critical role in the biggest licensing deals that InterDigital strikes with product manufacturing companies. Mattis has been instrumental in Apple’s renewal, the ongoing arbitration with Samsung and the global litigation against Lenovo.
We also caught up with Mattis about her career path toward the top attorney role on InterDigital’s licensing team, her techniques for negotiations and her philosophy on leadership in the IP department.
Mattis’ team serves as the in-house legal counsel for InterDigital’s licensing group. Someone from legal works alongside a licensing executive in every licence negotiation the company engages in. The licensing professional hammers out the commercial aspects of the deal such as price and what the licence includes and excludes. When the terms are set, Mattis and her team step in to draft and shape the contract and patent licensing agreement.
“We work hand-in-hand with our business colleagues both at the negotiation table and internally - working to formulate strategies and plans and develop and offer proposals. We consider ourselves partners. My team and I are just as strong in our business skills and the economics of licensing as we are in the legal aspects,” Mattis comments. “With some customers I take the lead on business discussions.”
Career path
Mattis finds joy in her work, expressing gratitude in being an attorney with the opportunity to generate revenue rather than being a cost centre. But if you asked her in law school whether she wanted to practice patent licensing law, Mattis would call you crazy.
She did always want to be an attorney, and in law school, she gravitated to property law. But tangible or intangible? She enjoyed real estate and intellectual property law (mainly trademark and copyright). Her career in IP was solidified in her first job in McGuire Woods’ intellectual property group doing trademark prosecution.
She earned her law degree from the University of Richmond School of Law in 2004. LinkedIn shows that she began her legal career as an associate at McGuire Woods, practicing trademark prosecution, advertising compliance and commercial transactions. Then from 2006 to 2008, Mattis was an associate with Pepper Hamilton, mostly working on intellectual property transactions.
From there, after having her first baby in 2008 and yearning for a better work-life balance, she left law firm life and went in-house. Mattis served a short stint as senior counsel at Advanta Bank Corp – one of her major clients – but the bank went out of business because of the 2008 financial crisis. Mattis joined InterDigital in 2010. For more than 11 years, she was the company’s vice president and deputy general licensing counsel. Since October 2021, Mattis has been chief licensing counsel there.
Initially, InterDigital hired Mattis to handle non-patent-licensing IP transactions, such as agreements for engineers to collaborate with university researchers or enter joint development projects with other companies. Nine months later, the patent licensing team recruited her.
Handling big deals
Apple is one of the few major licensees that InterDigital has never had to litigate against. The firms reached agreements through negotiations. Mattis is also proud that the Samsung mobile renewal is pending in arbitration now.
“Driving that towards arbitration was a good result. It is a little bit of a delayed result, but I think it is a good way of driving a deal to conclusion when parties cannot agree on terms. It is a much more efficient and more reasonable way to resolve a dispute rather than going to global litigation,” Mattis notes.
She mentions that Samsung has been a licensee for a long time and there was no question it would renew at some point. While it became clear that both sides were not seeing eye-to-eye on deal terms, they did agree that arbitration was the best way to work it out. Mattis’ view is that other potential licensees refuse to arbitrate because ultimately, they do not want to take a licence or try to delay for as long as possible.
“Remember, to go to arbitration, there is definite risk for each side, because it is final and binding and there are no appeals,” Mattis reminds.
Though not its preference, InterDigital does engage in litigation when it must. An example is the global dispute with Lenovo over cellular and video codec standard essential patents. Mattis has been a key internal figure advising InterDigital during the matter. She even testified in the trial in the UK case.
In July, the Court of Appeal for England and Wales increased the amount Lenovo must pay for InterDigital’s 5G portfolio. The royalty increased from $138.7 million to $178.3 million, and factored in an additional 4% compound interest, bringing Lenovo’s total to $240 million for using the patents from 2007 to 2023. This is $55 million more than the previous award.
UK Court of Appeal hikes InterDigital’s Lenovo royalties in landmark glo...
Second instance judges recalculate per unit rate, resulting in a more-than $50 million increase to licence fee
The appeal court upheld the trial court’s decision to charge royalties on all past sales to disincentivise implementer hold-out. The ruling stated: “An implementer such as Lenovo requires a licence from the first day it implements the relevant standards. FRAND terms are the terms that would be agreed between a willing licensor not intent upon hold up and a willing licensee not intent upon hold out.”
Mattis’ view is the ruling is important in addressing hold-out by companies that do not want to take a licence. Hold-out has created an industry practice of rights holders discounting past sales. This, in turn, encourages licensees to delay licensing portfolios, because in doing so the reward is paying less, she says.
“The UK decision says, ‘no. You have to pay on every sale, back to your first sale. That is a monumental step to address this pervasive issue,” Mattis says. “In the decision Justice Arnold made it very clear that this behaviour should not be rewarded.”
While she spends the most time on InterDigital’s agreements that are signed without litigation, she is involved in litigation as and when cases arise. She enjoys the work because it is a new challenge that pushes her to think differently, formulating lessons for future licensing deals.
“It is super instructive in terms of going forward for our licensing and thinking about: ‘Oh, we did it this way, but given what we have learned in a particular litigation, we may want to approach it differently.’ It is a way to continuously improve by being involved in litigation and seeing how things play out; seeing how little things you never would have thought of could be impactful and make a huge difference. It is a great learning experience for everyone on our licensing team to be involved in litigation."
Negotiation and leadership skills
Despite the benefits of learning from the litigation process, patent holders generally seek to avoid court disputes and handle negotiations privately.
At the negotiating table, Mattis is tough but fair. She is motivated to close deals and never wants to be the reason that a deal falters.
“I do try to listen to the other side and try to figure out what their issues are: why we can’t come to some kind of agreement and whether we can manage their issues in some way. I try to be creative and practical as well,” explains Mattis. “I also am pretty calm and it really takes a lot to get me worked up. I see this as an asset as negotiations can be very challenging in our business and can be so adversarial. … But I strive to keep a cool head and for the most part, I have always walked away from negotiations being friendly with the person on the other side. Our tone during the negotiation may be argumentative or combative, but then we will walk away and have a friendly conversation about our families. It is about building those relationships and building that trust with your counterparts that really helps you succeed in the long run.”
At this stage of her career, Mattis focuses on big deals and her team handles medium-to-smaller deals. She manages five employees on the licensing legal team.
She has gleaned her management style from picking up on lessons from her career and her past managers. Their influences show what to do – and what not to do. She is an inclusive leader and says several “North Stars” guide her management priorities.
“One is to share as much information as possible. You can't do your job and do it well if you don't have all the information you need at your disposal,” Mattis explains. “I try to clearly communicate all the information that my team would need.”
Respect is another priority. She is direct and sets clear expectations so that her team always knows where she stands – but always respectfully.
“It's important for my team to discuss and tell me things and for me to hear their feedback and their ideas. I may be missing something that they know. I really try to be inclusive, I encourage them to really try and do their best and I'm open, I'm communicative. I try to be respectful and treat them how I would want to be treated,” says Mattis. “At the end of the day, it's the golden rule.”
T Mobile is over
IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF TEXAS
WACO DIVISION
VOIP-PAL.COM, INC.,
Plaintiff,
v.
T-MOBILE USA, INC.,
Defendant.
Case No. 6:21-cv-674-ADA
FINAL JUDGMENT
At the Final Pretrial Conference held July 9, 2024, the Court announced on the record that
(1) Defendant T-Mobile USA, Inc.’s (“Defendant”) Motion to Amend Answer to Add
Counterclaims (Dkt. No. 88) is GRANTED; (2) Defendant’s Motion for Sanctions Based on
VoIP-Pal’s Violation of Court Order (Dkt. No. 219) is DENIED; and (3) Defendant’s Motion for
Summary Judgment of Non-Infringement (Dkt. No. 136) is GRANTED. The Court issued a
written opinion granting Defendant’s Motion for Summary Judgment of Non-Infringement on July
29, 2024. Dkt. No. 272. The Court now enters its Final Judgment as follows:
IT IS ORDERED that final judgment of non-infringement is entered in favor of Defendant
and against Plaintiff. Plaintiff shall take nothing in this action.
IT IS FURTHER ORDERED that any and all motions not previously ruled upon by the
Court are DENIED as moot.
IT IS FURTHER ORDERED that Defendant’s remaining counterclaims and defenses
are dismissed without prejudice.
IT IS FURTHER ORDERED that Plaintiff’s defenses to Defendant’s remaining
counterclaims are dismissed without prejudice.
Case 6:21-cv-00674-ADA Document 273 Filed 08/15/24 Page 1 of 2
2
IT IS FURTHER ORDERED that Defendant may file a motion for attorney’s fees and
costs, with supporting documentation in accordance with Local Rule CV-54(b)(2), within the time
frame prescribed by the Local Rules.
IT IS FINALLY ORDERED that the Clerk of Court is respectfully directed to close the
case.
SIGNED this 15th day of August, 2024
Hard for them to get good press. Maybe they need a new IR team
Benzinga transcript- not much there, but he says they are on the their way
Audio file
Bengahzi 8_12_24 audio.mp3
Transcript
00:00:01 Speaker 1
Thank you. Great to see you again tonight.
00:00:03 Speaker 2
I love the background. You've got something of a different look than usually when we talk, but where you at right now?
00:00:10 Speaker 1
I'm in my Home Office. I got visitors, international visitors, so I've been pushed out to the kitchen. So that's why you'll see. It's interesting background here.
00:00:18 Speaker 2
No matter how successful you are, they still find a way to kick you out of your workspace. You've got to love it. We'll let you and I've had so many conversations, but for the viewers that are watching you for the first time, give us a quick, brief overview of what.
00:00:30 Speaker 2
Lightwave logic is, but especially in the commercialization process. And what next year can kind of look like. I'd love to get insights there as well.
00:00:38 Speaker 1
Right. Yeah. So this last three months has been incredibly busy for us.
00:00:42 Speaker 1
So earlier this.
00:00:43 Speaker 1
Year we actually went to a major conference and we showed some world class results. We had a lot of visitors to our demonstrations at the conference and and various other places, but that's been followed up in the last three months with visits to our facility in Denver, Co.
00:01:00 Speaker 1
And so we've been seeing tier one companies come.
00:01:03 Speaker 1
Visit us. Come check us out. Go inspect what we really have there and what we have is a world class materials facility that can ramp our polymer materials. They're also seeing some of our state-of-the-art testing of super high speed. And so we've been showing them performance metrics performance.
00:01:23 Speaker 1
Later, and it's been a really exciting lasting 3 months since I last talked to you. So from a commercialisation standpoint, this has been I think 2024 growing interest in our technology.
00:01:37 Speaker 2
What makes this company interesting for me is the fact that you're able to have your polymers not just be advanced, but you're able to do it at faster speeds at lower cost. But help me understand.
00:01:46 Speaker 2
How you're able to do that?
00:01:48 Speaker 1
When we do that because we design our own homes and we've got really good control both from an IP patent standpoint as well as a performance standpoint and these powers perform better than the semiconductors, the semiconductor technology is already out there. So this is really exciting. And what we've done this year is.
00:02:08 Speaker 1
You've actually shown.
00:02:10 Speaker 1
Customers, the actual performance. So we're seeing super cost data rates. I'm not going to go into those details. We're showing that these data rates operated super low voltage levels.
00:02:20 Speaker 1
And if you.
00:02:21 Speaker 1
Think about these two things. Just those for the minute. Super high speed is what's being really being driven by things like AI and low.
00:02:30 Speaker 1
Voltage really lowers the power consumption, so you talk to any data center operator. They're looking for creative ways to get that power consumption down, and this is a technology that can do it.
00:02:40 Speaker 1
So for us.
00:02:42 Speaker 1
These types of performance metrics in our facility in Denver, Co has been absolutely.
00:02:48 Speaker 1
Hidden.
00:02:49 Speaker 2
Yeah. Typically, whenever you see faster speeds, you assume higher cost, but that's not the case here. So that's what's most interesting to me. But you mentioned the conference, which is a 2024 European Conference on optical communication, how was that and what is presenting at these sorts of events and benefit and how does it benefit the company?
00:03:06 Speaker 1
So all the customers will be there. So just similar to the optical fiber conference in March this year, FC will first came out with the this level of low cost performance. We're now being invited to talk at the CLC, that's the European Conference of Optical Communications and this year has been held in Frankfurt.
00:03:25 Speaker 1
In late September, and not only over have we been asked to give a talk on the performance that our work, we're actually being selected as one of the finalists for the Hybrid Optical integration category and that's really exciting for us. So I mean this is a conference that has the world's best companies.
00:03:45 Speaker 1
From all over the world and uh suddenly being asked to give a talk and being a finalist too, is actually really exciting for us.
00:03:52 Speaker 2
Yeah, being just being nominated is such a great accomplishment, you know, good luck on that aspect of it. Let's talk about you mentioned finalists, which means there are other folks that are involved in this space as well.
00:04:03 Speaker 2
What kind of competition do you face? But more importantly, what's your biggest advantage? I understand you've got the polymers at faster speeds at a lower cost. What other advantages do you have?
00:04:13 Speaker 2
And one of the.
00:04:13 Speaker 1
Big advantages we have is that our technology fits really neatly into the big silicon foundries and over the last three months we actually did announce that we're in a strategic relationship with a big foundry based in Singapore called AMF.
00:04:29 Speaker 1
And these are the folks that are doing that technology on 200mm huge average type waitress. And so this is one of the advantages over our competition. A competition is in fact typically technologies that are difficult to get into Silicon Valley whereas our technology because it becomes in a in a liquid form, we can spin it onto the wafers.
00:04:51 Speaker 1
It actually works really great on to silicon wafers and so that is one of the advances in addition to the high performance, because if you think about what we have is is a disruptive technology compared to the incumbent semi colon.
00:05:07 Speaker 1
While you want a disruptive technology, you don't want it to be that disruptive that you have to change all of the infrastructure in order to make it work. And so plus, having a technology that is really good in performance is disruptive enough, but it doesn't disrupt things like the foundries, it doesn't disrupt their processes.
00:05:26 Speaker 1
It doesn't disrupt their equipment. That's already there. And so we are making really good use of the infrastructure with our new technology and that's why you have to be very careful when you use the word disruptive. Yes, we've disrupted performance, but we don't disrupt the infrastructure and that's exactly what.
00:05:44 Speaker 1
The industry is looking for.
00:05:46 Speaker 2
So many times we've heard the phrase of they were ahead of their time, right where a technology or company just came out a little bit too early to where the retail folks, the audience, the world just wasn't ready for. And that's what that reminds me of what you said where you don't want to be too disruptive to where you can't realize it because the infrastructure is not able to handle the advanced technology that you're dealing with.
00:06:07 Speaker 2
But Speaking of technology, how does the AI boom impact your industry? And is there any over?
00:06:12 Speaker 2
Out there.
00:06:13 Speaker 1
So the AI boom we we've heard of companies called NVIDIA that have done really well with that GPU chips. And but what those GPU chips are are electronic processes. So the processing the computations are done electronically. What we have here is technology that actually.
00:06:33 Speaker 1
Modulates the optical signals that go down the fibre optics.
00:06:37 Speaker 1
So if you.
00:06:37 Speaker 1
Think about what may happen is is in the GPU chips. AI is generating a lot more computational processes. Some of those computational processes will go to memories on chip and some.
00:06:48 Speaker 1
Of them will go.
00:06:49 Speaker 1
Off chip down the fiber optic networks. That means there's more data that's to be sent faster. Yeah, so we are indirectly benefiting from the AI. So when AI is becoming more popular and people want to do more things with it, more computations occur in the GPO chips, GPU chips. Sorry, that sends more information down the fibers.
00:07:11 Speaker 1
To.
00:07:12 Speaker 1
Yeah, I guess GPU chips all through the data centers and we have a technology that really takes advantage of sending that data to a higher speed. So we indirectly benefit from GA, which is really exciting today.
00:07:26 Speaker 2
You mentioned chips and always reminds me of when I used to have to do school work and the chips would be like.
00:07:32 Speaker 2
You know the.
00:07:34 Speaker 2
Sand desk chips would be like what is it? 256 megabytes would be like this big. Now you can get like 2 terabytes in this small of 1. So it's just amazing to.
00:07:42
Really.
00:07:42 Speaker 1
Like.
00:07:43 Speaker 2
My nephew doesn't even.
00:07:44 Speaker 2
Know what floppy disks are so.
00:07:46 Speaker 2
Yeah, things have come a long, long way.
00:07:50 Speaker 2
Doctor Levy, it's always great to talk to you, but I wanted to give you the floor before I say bye. Is there anything else that we miss to talk about?
00:07:55 Speaker 2
The floor is.
00:07:56 Speaker 2
Yours to talk to our viewers. Ohh.
00:07:58 Speaker 1
Yeah, we, we've been increasing our position on the patent.
00:08:03 Speaker 1
And so I think we had a patent issued in the last quarter that has been really exciting. And so we continue to file patterns and that really helps our part of the business strategy of not only.
00:08:16 Speaker 1
Selling modulators, but usually creating the material with Electro optic polymers that we can license. So we have a dual problem business model where we license our material as well as put on material into devices to show people the incredible performance. But yeah this this is been a great summer and I expect it to continue.
00:08:36 Speaker 1
In control in the end.
00:08:37 Speaker 1
Of this year.
00:08:38 Speaker 2
Also appreciate your time. As always, doctor. Lovely, thank you for coming on.
00:08:42 Speaker 1
Appreciate it. Thank you.
00:08:43 Speaker 2
Sonia, absolutely now.
Short interest up a little 4,960,000
new S A article
InterDigital: Growing Fast By Monetizing AI For Video
Aug. 09, 2024 11:52 AM ETInterDigital, Inc. (IDCC) StockQCOM, RMBS
Chetan Woodun
Summary
InterDigital's recent stock upside was not impacted by tech volatility, showing the strength of its IP or intellectual property portfolio.
The company's AI technology optimizes video streaming quality without compromising, leading to revenue growth and strong financial performance.
Despite facing competition and downside risks, InterDigital's innovation in AI and video technologies positions it as a growth stock with the potential for sustained momentum.
Also, after such a rise, expect volatility in case the Federal Reserve does not cut the rate as expected.
Still, this highly profitable company can deliver more sales than expected for this financial year and potentially deliver double-digit growth for next year as well, making it a growth stock to contend with.
Robotics and AI for the future. 3D rendering.
Ake Puttisarn/iStock via Getty Images
InterDigital Inc. (NASDAQ:IDCC) is a midcap stock whose most recent upside coincided with the weakness suffered by the Invesco QQQ Trust ETF (QQQ) as shown in the chart below. While it is true that the company’s upbeat financial results for the second quarter of 2024 (FQ2) released on August 1 did help, the fact that it was not impacted by the general volatility engulfing tech names suggests strength.
s
Comparing recent performance with the tech-heavy QQQ (seekingalpha.com)
One of the reasons is its double-digit growth achieved by applying AI to improve video quality, while others, including the Magnificent 7 are still investing billions of dollars to build intelligent infrastructures.
From this perspective, this thesis aims to show that InterDigital is a growth stock, as the above price action may signal that investors are starting to pay attention to companies already monetizing innovation rather than be influenced by AI hype. Therefore, it is a buy since its trailing price-to-earnings remains underpriced relative to the the IT sector by more than 50%, and there are chances of generating more sales than expected.
First, I show what value this innovator brings to video streaming through its IP or intellectual property.
Using AI to Optimize the Quality of Video Streamed
About 82.5% of the internet's traffic consisted of video applications in 2023 as these have become increasingly popular on social media platforms as a way to communicate. However, there are challenges involved in transmitting video files over the internet, especially the high-quality ones when sent frequently throughout the day and night. The problem is these can strain even the most powerful networks resulting in buffering (delay), or even a disruption of the streaming experience when many users simultaneously use a platform. Now, there are techniques to address these issues, like compression to reduce file size, but this can impact quality.
This is where InterDigital's technology, which makes use of AI, comes into play, both to optimize video compression and transmission. It differentiates itself by being uncompromising on quality while making sure the video is delivered in such a way the streaming experience is smooth, or without introducing delay. Such performances where minimal transmission errors can be tolerated are essential in mobile phones to handle video-related tasks, such as Alphabet's (GOOGL) (GOOG) Pixel smartphones and Fitbit wearables.
Thus, a new licensing agreement with the search giant helped InterDigital to drive revenues to $223.5 million in FQ2 as shown below, or more than two times the amount initially guided, representing a 120% YoY surge.
s
Second quarter earnings call presentation (seekingalpha.com)
Other significant revenue contributors were a licensing deal with Panasonic (OTCPK:PCRFF) and Lenovo's (OTCPK:LNVGY). Following InterDigital's winning litigation cases against this Chinese company, the latter was ordered to pay licenses covering sales in the period 2007-2023, as I will detail later.
Also, as shown above, non-GAAP EPS surged from the $0.7-$0.8 initially expected to more than $4.57, or more than six times.
Highly Profitable, Deserving Better Based On Valuations and Sales Strength
Diving deeper into profitability, its trailing gross margins are 78% which outshines the sector median and is explained by InterDigital not manufacturing nor selling physical products but mainly licensing its portfolio of patents. This means that to stay ahead of the competition, it has to invest in research which accounts for its trailing EBITDA margin of 53.6%, but still exceeding the median for the IT sector by more than 400%.
Looking ahead, FY-2024's EBITDA margin guidance is expected to be 55%, up from 50% forecasted at the end of FQ1 which should translate into a non-GAAP EPS of more than $10.30 (midpoint), or more than $2.20 (27%) above the prior guidance.
Therefore, with its ability to convert sales dollars to profits, the company deserves better, and for this purpose, its trailing P/E is undervalued relative to the IT sector by 51% as shown below. Now, doing a comparison with IP pureplay Rambus Technology (RMBS) which has benefited from its market positioning in AI memory chips and whose P/E is 19.74x, InterDigital could potentially appreciate by 41% (19.74 - 13.79)/13.79. This translates into a target of $195.5 (138.65 x 1.41) based on the share price of $138.65 at the time of writing.
s
seekingalpha.com
To further support my bullish position, firstly, the revenue outlook for FY-2024 which has already been upgraded by $70 million could benefit from additional agreements signed during FQ3. Secondly, the management highlighted the litigation case it won against Lenovo will set a precedent during future negotiations covering HEVC (High Efficiency Video Coding) patents implying incremental revenues during negotiations with customers. Based on these two points, there are more chances of beating FY-2024's topline expectations or raising guidance at the end of FQ3 for a company that has suffered from a miss only once during the last ten years.
Faces Competition and Downside Risks In The Medium Term, But Innovation Can Help
Now, in addition to HVEC, its overall portfolio also consists of wireless (like 5G) patents and applications, which means that it does face competition from established semiconductor players with enormous R&D budgets like Qualcomm (QCOM) and Broadcom (AVGO) just to name two. As for HVEC, it competes with video and entertainment play Sony (SONY) without forgetting MPEG LA which manages a patent pool for HEVC.
Thus, there are risks that customers shift to competitors, thereby impacting revenue growth, especially after growing at 20% YoY FY-2023, and the 30% YoY expected for FY-2024 as shown below. By the way, this year's overall sales should benefit from an additional payment of $55 million from Lenovo (in July) and reimbursement of legal expenses incurred for the court case. To this end, analysts' estimate only $484 million of revenues for FY-2025 which would translate into a YoY decline of 32% as shown below, with growth expected to resume only in FY-2026.
s
seekingalpha.com
Therefore, after growing at a rapid pace, a double-digit decline may well not be digested by investors and is likely to result in volatility.
Still, as evidenced by its ability to improve performance during FQ2 in a way that far exceeded the outlook, and continued execution of its strategy to strengthen its innovation pipeline, I believe FY-2025 could deliver a revenue growth. The driver for this is VVC, or Versatile Video Coding, the latest video compression standard that paves the way for new opportunities in streaming applications and network efficiency, namely through the application of AI.
How AI Can Help to Sustain Growth Momentum in FY-2025
Digging deeper, while the VVC standard itself does not include AI, it is InterDigital's propensity to apply Machine Learning to optimize video networks for a better user experience across a large variety of use cases (including augmented and virtual reality) which should help it to drive its IP or intellectual property portfolio to new heights. To this end, a recent LexisNexis report stated that InterDigital is among the top seven patent holders for both HEVC and VVC, based on the quality and quantity of their patents. This strength saw it sign a patent license agreement with LG Electronics, the South Korean-based manufacturer of various consumer electronics products, last year also included VVC in addition to HVEC.
To further solidify the competitive position of its video portfolio across diverse devices and services, the company is using deep learning techniques to disrupt the open-source library of CompressAI as shown below.
s
AI Lab (www.interdigital.com/ai-lab)
Thus, in a video streaming market that is expected to grow at a 19.3% CAGR from 2023 to 2030, it could continue to grow by double-digits next year. Estimating a 19.3% increase in sales for FY-2025 instead of a 32% decline as currently expected, the topline could increase to $855 million (484.6 x 1.193) based on the $484.6 million estimated by analysts. This would in turn increase the forward revenue growth from 1.9% to 16.9% as tabled below, putting it firmly above the sector median's 6.65%, thereby improving the company's growth grade.
s
Table built using data from (seekingalpha.com)
Monetizing AI In A Capital-Light Way, While Others Are Spending Billions
Moreover, as I mentioned earlier, there are ingredients to potentially deliver a topline beat for this year, all thanks to leveraging its expertise in video compression and codecs to enhance user experience in video streaming. In this regard, the Deep learning technology (which it is using) is not as new as the much-hyped Generative AI, but, as evidenced by its financial results, can move the needle when it comes to driving long-term shareholder value. In so doing, it is not spending billions of dollars to acquire the latest accelerated computing GPUs produced by Nvidia (NVDA) as big tech is doing, but instead is spending relatively less capex on innovation, resulting in superior FCF margins of 30%.
Finally, InterDigital's business model, which consists of generating revenues by enabling other companies to embed its innovations in their products, has been highly profitable. In this connection, with a cash balance of $760 million versus debt of $489 million at the end of FQ2, it can continue its policy of share buybacks and dividend payments while continuing to invest money to stay ahead of competitors.
Therefore, it is increasingly likely for investors to reward companies like InterDigital whose IP is the basis for advancements in video and wireless and as the market's focus turns to the monetization aspect of artificial intelligence.
Ending on a note of caution, given so many expectations about a rate cut in September already priced in asset valuations, there could be a lot of volatility if there is any delay by the Fed in loosening monetary policy.
Editor's Note: This article was submitted as part of Seeking Alpha's Best Growth Idea investment competition, which runs through August 9. With cash prizes, this competition -- open to all analysts -- is one you don't want to miss. If you are interested in becoming an analyst and taking part in the competition, click here to find out more and submit your article today!
and then I see this headline of an article. So maybe Tesla is appealing
Law360, London (August 1, 2024, 2:24 PM BST) -- Tesla is challenging a decision that it cannot bring FRAND rate-setting proceedings against InterDigital and 5G patent pool Avanci in the U.K., but IP experts have warned that there are limits...
The end of the road for Tesla’s claim against InterDigital and Avanci
https://www.lexology.com/library/detail.aspx?g=0cfc855b-1960-4aee-b57e-4ef40caaa914
enjoy the read, if you figure it out, feel free to post😊
ML still doesn't like them- tar 100 underperform
InterDigital, Inc.
Strong quarter on the surface, but challenges to the business remain
Reiterate Rating: UNDERPERFORM
PO:100.00 USD | Price:122.76 USD
Equity | 01 August 2024
Key takeaways
2Q rev/EPS of $234mn/$3.93 came in well above Street's $124mn/75c, however outperformance was mostly due to non recurring rev
Recurring rev, 77% of revenues, declined -3.2% YoY and lumpiness of non-recurring rev leaves limited visibility
Positively, the company signed new licensing agreements with Google and Panasonic which should boost the CE/handset segments
FULL REPORT
Strong quarter, but driven mostly by catch up payments
2Q revenue of $223.5mn, +120% YoY, far exceeded Street expectations of $100mn, however, the outperformance was largely driven by catch up payments, particularly in the handset segment. Topline outperformance flowed through to EPS driving a beat of $3.43 versus Consensus' 75c. Management raised FY guidance $715mn at the midpoint, and while the magnitude of the raise, $70mn, is less than the magnitude of the beat, which was $128.5mn, the difference was mostly due to the accrual of litigation payments versus implying a weaker back half. We also note that updated guidance includes a $55mn litigation payment from Lenovo which was not previously included in the FY guide. While there are positives to the InterDigital story, underlying trends remain depressed, and visibility remains limited. We revise our estimates and reiterate our Underperform.
What we like: new agreements, litigation progress
Outside of catchup payments, 2Q outperformance was driven by strength in CE and IoT, which grew over 60% YoY thanks to new licensing agreements like Google, Samsung TV and Panasonic. The Google agreement covers 4G/5G assets as well as Pixel smartphones and FitBit devices and is already contributing to revenues. InterDigital also signed a deal with Panasonic to cover 4G/5G assets as well as Wifi and HeVC video patterns, highlighting InterDigital's leadership in the video segment. The company also saw solid litigation wins this quarter with Lenovo in both the UK and Germany and has multiple open licensing negotiations with key OEMs including Samsung, Oppo, Vivo and Huawei which could provide additional upside to guidance.
What we don't: recurring revenues still declining
While there were multiple positive drivers in 2Q, key underlying trends remain depressed. Recurring revenue growth declined for the third straight quarter to -3.2% YoY, driven largely by the handset segment which declined -14% YoY and accounts for 77% of recurring revenues. Assuming 60% of revenues are recurring for FY24, we flag that 2H recurring revenues would have to reaccelerate to 13% growth, versus -4% in 1H, in order to meet current guidance. We also highlight the unpredictable nature of one-time payments, such as payments from litigation, as a risk factor that causes uncertainty and variability of Street estimates versus actual results.
Anyone think they will ever get any real coverage by analysts🤐
maybe we should speak, you can reach me at vigaits@aol.com
Keefe Bruyette raises target to 96 after downgrading it 2 days ago🤔
Avanci 5G snags Chinese state-owned licensor, but wait for first licensee from country continues
Adam Houldsworth
25 July 2024
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Avanci 5G snags Chinese state-owned licensor, but wait for first licensee from country continuesImage from Shutterstock/Alga-Studio
Avanci’s 5G connected vehicle licensing continues to attract new patentees. Today it was announced that China Unicom – one of the country’s three major mobile network operators – has signed up to license its 5G era portfolio through the platform, becoming the latest of several government-owned Chinese Avanci licensors.
This development stands in contrast to the recent actions of another Chinese state organ – the State Administration for Market Regulation – that sent a letter to Avanci cautioning it to ensure compliance with the country’s competition rules. And, crucially, Avanci’s success in attracting Chinese private and state-owned licensors has not yet been mirrored in its efforts to sign up Chinese car companies as licensees.
Less than one year after launching its 5G-era licensing programme, Avanci already has 68 licensors on board – more than have joined the company’s 4G platform (itself widely perceived to have been a success) since its 2016 launch.
These include several privately-owned Chinese companies, such as Huawei, Coolpad and Unisoc. But they also include several partly state-owned entities, ZTE and TCL, as well as wholly state-owned telecoms equipment entity Datang and wholly state-owned mobile network operators China Telecom and China Mobile.
China Unicom’s decision to join means that all three of the country’s largest network operators are now Avanci 5G licensors. China Unicom – like China Telecom – did not participate in Avanci’s 4G programme and has now chosen to work with the company for the first time.
This underscores the growing confidence placed in Avanci by organisations owned by the Chinese government to license their cellular connectivity patents to carmakers around the world.
However, not all Chinese state entities have given the same vote of confidence. Last month, the State Administration for Market Regulation, which enforces China’s beefed-up 2022 Anti-Monopoly Law, announced that it had delivered a letter to Avanci to “remind and urge” it to avoid anticompetitive conduct and to take effective measures to prevent or rectify any relevant problems.
This follows the SAMR’s 2023 introduction of new Provisions on Prohibition on Abuse of IPR, which emphasise that patent pools/joint licensing programmes can fall foul of the country’s anti-monopoly laws in several scenarios (listed here) including when they are licensing patents at an unfairly high price.
SAMR does not appear to have made any concrete accusations against Avanci or even to have launched any formal investigation. However, its announcement suggests that it has concerns – or at least potential concerns – about cellular SEP licensing practices in the automotive space.
Another state-run organisation, the China Automotive Technology and Research Center, published an Automotive SEP Research Report, along with Peking University and the China Society of Automotive Engineers, in September 2023. Aspects of this report are likely to make uncomfortable reading for Avanci; it calculates that the aggregate royalty burden for any $27,500 car sold in China should be between $0.28 and $2 per vehicle – compared to the $32 per car charged by Avanci’s 5G pool.
In fact, no Chinese OEM has yet signed up as a licensee for either Avanci’s 4G or 5G platform, despite the extraordinary success of those programmes in licensing carmakers from other parts of the world.
Having started life with just Mercedes-Benz on board in August last year, the 5G pool now has at least 31 auto brands signed up as licensees. These include another two German-owned groups of OEMs – BMW, Volkswagen and their subsidiaries – Korean implementers Hyundai, Genesis and Kia, a Japanese brand – Yanmar – and US car giants General Motors and Ford.
The 4G programme has attracted several times this number of licensees. It was recently announced that it now has more than 100 auto brands under licence. These include the vast majority of OEMs from Europe, the US, Japan and Korea – but none from China’s booming car industry.
The absence of Chinese licensees is a significant challenge for Avanci, especially given the size of country’s automotive sector, which is increasingly penetrating markets beyond China, especially in the electric vehicle space.
This is reflected in the efforts being made by Avanci’s 5G programme chief Laurie Fitzgerald. As IAM reported, she paid a lengthy visit to China earlier this year where, among other things, she gave a presentation and engaged in a panel discussion at one of the most popular Chinese IP conferences, IP Forefront ICT Forum in Shanghai. Avanci has also opened new offices in Beijing and Shenzhen in recent years.
Avanci will hope that the country’s OEMs – which include many state-run businesses – will, like China’s state-run patentees, soon see a clear commercial/legal rationale for joining its licensing schemes.
One hopeful development in this respect is the rapid expansion of the Chinese carmakers into foreign markets – especially the European Union – which will increase the leverage of SEP owners who have been reluctant to file lawsuits in the OEMs’ home market.
However, the Supreme People’s Court’s recent ruling that Chinese courts have jurisdiction over the licensing rates and terms of foreign patent pools remains a potential concern for Avanci and its licensors.
Tacora Resources Inc. Selects Successful Bidder in Sale Process
Tacora Resources Inc
Tue, Jul 23, 2024, 12:30 PM EDT5 min read
TORONTO, ON / ACCESSWIRE / July 22, 2024 / Tacora Resources Inc. ("Tacora" or the "Company") today announced that it has selected a bid from Millstreet Capital Management LLC, as investment manager on behalf of multiple noteholders ("Millstreet"), OSP, LLC (on behalf of certain managed funds) ("OSP") (Millstreet and OSP are each holders of certain of the Company's senior secured notes and senior secured priority notes) and Cargill, Incorporated (collectively with any affiliates, "Cargill" and together with OSP and Millstreet, the "Investors") as the Successful Bid under its sale process (the "Sale Process"), as defined therein, conducted pursuant to, and in connection with, its proceedings (the "CCAA Proceedings") before the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (Canada) (the "CCAA").
Following the selection of the Investors as the Successful Bidder under the Sale Process and as defined therein, the Company and the Investors entered into a subscription agreement (the "Subscription Agreement") on July 21, 2024. The Subscription Agreement contemplates, among other things, an equity injection of up to US$250 million by the Investors, assumption of substantially all pre-filing and post-filing trade amounts (subject to payment terms and amounts to be agreed to by the Company and the Investors), the assignment of key contractual arrangements (subject to payment terms and amounts to be agreed to by the Company, the Investors and such third parties), full repayment of the DIP facility, and continued employment for all existing Tacora team members. It also contemplates a new Cargill offtake agreement that will allow Tacora to generate higher net realized revenue per tonne. The transactions contemplated by the Subscription Agreement will allow Tacora to significantly deleverage its balance sheet, provide new capital to execute on its long-term plan to upgrade and modernize the Scully Mine and to achieve the Company's objective of producing in excess of six million tonnes of high-grade iron ore concentrate per year. The Subscription Agreement contemplates a target closing date of August 30, 2024.
Heng Vuong, Tacora's Executive Vice President and Chief Financial Officer, said "the transactions announced today with the Investors represent a successful outcome for Tacora and its stakeholders. The transactions will allow Tacora to emerge from the CCAA Proceedings as a much stronger and better-capitalized business focused on achieving the full potential of the Scully Mine and provide employment for Labrador West for generations to come. We thank all Tacora team members, our suppliers, and other stakeholders for their resilience, continued support through the CCAA Proceedings and contributions to this successful outcome."
The Subscription Agreement and transactions thereunder remain subject to, among other things, Court approval. The Company intends to appear before the Court on July 26, 2024, or as soon as possible thereafter, to seek an order approving the Subscription Agreement and the transactions contemplated thereunder. A copy of the Sale Process, the Subscription Agreement and more information related to the CCAA Proceedings can be found on the Court-appointed Monitor's website at http://cfcanada.fticonsulting.com/Tacora. Information regarding the CCAA Proceedings can also be obtained by calling the Monitor's hotline at 1-833-420-9074 or by email at tacora@fticonsulting.com.
Advisors
Greenhill & Co. Canada Ltd., an affiliate of Mizuho, is serving as financial advisor and Stikeman Elliott LLP is serving as legal counsel to Tacora. FTI Consulting Canada Inc. is serving as Court-appointed Monitor and Cassels Brock & Blackwell LLP is serving as legal counsel to the Monitor. GLC Advisors & Co., LLC is serving as financial advisor and Osler, Hoskin & Harcourt LLP is serving as legal counsel to Millstreet and OSP. Jefferies Financial Group Inc. is serving as financial advisor and Goodmans LLP is serving as legal counsel to Cargill.
About Tacora Resources Inc.
Tacora is a private company that is focused on the production and sale of high-grade and quality iron ore products that improve the efficiency and environmental performance of steel making and, subject to final process verification and economic assessment, the development of a high purity manganese product for advanced battery technology. The Company owns and operates the Scully Mine, an iron ore concentrate producer located near Wabush, Newfoundland and Labrador, Canada with a production capacity of six million tonnes per year. Additional information about the Company is available at www.tacoraresources.com.
Wow, didn’t really expect a reply. Isn’t the tax loss starting to run out
Wow, didn’t really expect a reply. Isn’t the tax loss starting to run out
Doesn't look like IDCC is going to appeal
July 23, 2024
VIA ECF
The Honorable Joshua D. Wolson
United States District Court for the Eastern District of Pennsylvania
3809 U.S. Courthouse, Courtroom 3-B
601 Market Street
Philadelphia, Pennsylvania 19106
Re: InterDigital Tech. Corp., et al. v. Lenovo Holding Co., Inc., et al.
C.A. No. 19-1590-JDW
Dear Judge Wolson:
Pursuant to the Court’s July 18, 2023 order, Dkt. 318, the parties provide the below
update regarding the status of their UK proceedings.
As indicated in our June 6, 2024 status update, Dkt. 332, the UK Court of Appeal heard
the parties’ appeal of the English High Court of Justice’s 2023 Order in the InterDigital v.
Lenovo UK proceedings (“UK I”) during the week of June 10, 2024. On July 12, 2024, the Court
of Appeal issued its decision modifying the royalty terms for the FRAND 3G, 4G and 5G license
between InterDigital and Lenovo for the period from 2007 to December 31, 2023 and dismissing
Lenovo’s appeals. See
https://assets.caselaw.nationalarchives.gov.uk/ewca/civ/2024/743/ewca_civ_2024_743.pdf.
The UK Court of Appeal has denied Lenovo’s request to further appeal its judgment to
the UK Supreme Court. Lenovo may still seek permission to appeal directly with the UK
Supreme Court. As such, the UK I proceedings have not fully concluded. The parties will
further update the Court when the UK I proceedings have fully concluded and a final agreement
between the parties has been executed covering the period through 2023.
In light of the foregoing, and consistent with the parties’ prior requests to this Court, the
parties respectfully request that this case remain stayed.
Respectfully submitted,
/s/ Neal C. Belgam
Neal C. Belgam
Case 1:19-cv-01590-JDW Document 323 Filed 07/23/24 Page 1 of 1 PageID #: 12834
shame no one cares
are you just making that up
N C Lenova case
ORDER granting in part and denying in part 69 Motion for Judgment on the Pleadings; denying 87 Motion for Leave to File; granting in part and denying in part 90 Motion for Judgment on the Pleadings. Lenovo's moti on for a judgment of invalidity is GRANTED as to the '054 patent and the '933 patent. Lenovo's motion for a judgment of invalidity is DENIED as to the '877 patent. Signed by District Judge Louise Wood Flanagan on 7/17/2024. (Collins, S)
Anyone still here
a final note
Home / UK Court of Appeal Rules on Side of Fairness in Ongoing Lenovo v ... /
UK Court of Appeal Rules on Side of Fairness in Ongoing Lenovo v InterDigital Case
14-Jul-2024 | Source : Lenovo | Visits : 145
HONG KONG - The UK Court of Appeal ruled in the ongoing landmark case between InterDigital and Lenovo for license rates for 3G, 4G, and 5G patents, ruling a limited and very modest uplift of the original royalty rate to 22.5 US cents per unit, only 6.5 cents higher than what Lenovo argued at trial was Fair, Reasonable, and Non-Discriminatory (FRAND), a press release stated by Lenovo.
The amount ruled on appeal is only 5 US cents off the rate set by Justice Mellor (17.5 US cents), but significantly less than half (27 US cents lower) the 49-50 US cents rate that InterDigital sought as a per-unit rate both at trial and appeal. Beyond the royalty rate, Justice Mellor’s original ruling otherwise remained undisturbed, including his determination of InterDigital’s un-FRAND conduct. As further evidence of its willingness and commitment to FRAND licensing, Lenovo is publicly offering InterDigital 22.5 US cents per cellular unit for a forward-looking license and hope this fully resolves the parties’ disputes.
Commenting on the ruling, Lenovo’s John Mulgrew, Vice President, Deputy General Counsel & Chief Intellectual Property Officer, welcomes the decision:
“We are pleased with the Court’s commitment to confirm fair, reasonable, and non-discriminatory terms for licensing, and are encouraged by what this decision means for ongoing negotiations with InterDigital, wider industry IP litigation cases, and most importantly, how this facilitates the proliferation of affordable innovation to customers around the world. Given the decision is far closer to Lenovo’s original position than InterDigital’s, we believe this is a further win for Lenovo and reinforces our continued commitment to FRAND licensing and being a willing licensee in the face of supra-FRAND offers and behavior.”
and I think they will be pushing for more than .22 going forward as they now have video
I tend to agree with Lenova. Wasn't IDCC asking 37 cents Good win, but not great.
July 11, 2024 00:00
Order Cancelling Deadline
Document: 267
ORDER CANCELLING FINAL PRE-TRIAL CONFERENCE. Signed by Judge Alan D Albright. (lad)
shorts under 20 mil, 19,606,000
The Evolving Role of Cryosurgery in Breast Cancer Management: A Comprehensive Review - PMC
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10486449/
Short interest increased 200,000 to 4,650,000
even more good news
European Study Provides More Evidence Supporting IceCure’s ProSense® is Safe & Effective Cryoablation Treatment for Metastatic and Recurrent Breast Cancer
? Independent, third-party data published in highly influential peer-reviewed journal, Cancers, concluded cryoablation with ProSense® is a safe, local treatment for breast cancer with low complication rate, high complete ablation rate and satisfactory overall survival (OS), progression free survival (PFS) and local tumor control
? 8.9% recurrence rate in population of 45 patients who had previously received various therapies before cryoablation including surgery, radiation therapy, or chemotherapy with tumor sizes of up to 4 centimeters in diameter. Of those patients, 11 had recurrent tumors and 21 had metastatic disease
? The higher-risk population in this European study contrasts with the early-stage breast cancer patient subjects in the U.S. ICE3 study
CAESAREA, Israel, July 9, 2024 – IceCure Medical Ltd. (Nasdaq: ICCM) (“IceCure”, “IceCure Medical” or the “Company”), developer of minimally-invasive cryoablation technology that destroys tumors by freezing as an alternative to surgical tumor removal, today announced the publication of an independent study evaluating its flagship cryoablation system ProSense® titled: “CT-Guided Percutaneous Cryoablation of Breast Cancer: A Single-Center Experience” in Cancers, a leading peer-reviewed oncology journal. The study, led by Principal Investigator Professor Thomas J. Vogl, was conducted at the Institute of Radiology and Nuclear Medicine, University Hospital Frankfurt, at Goethe University, Germany.
Professor Vogl commented, “Liquid Nitrogen-based cryoablation was found to be a safe local treatment for breast cancer, with a low complication rate—in fact, none were observed in the study. We experienced a very high complete ablation rate of 100%. Overall survival, progression free survival and local tumor control were all good, especially given the very heterogenous patient population. The fact that this is a minimally invasive procedure that can be performed on an outpatient basis with excellent cosmetic results are clear advantages. We look forward to further evaluations of cryoablation especially in comparison to other treatment modalities for early, recurrent, and metastatic breast cancer.”
“While this study’s patient population is very different from our U.S. based ICE3 study and the target indication for which we have filed for regulatory approval in the U.S., the results of the study are highly valuable for ProSense® users in Europe where our system is approved for general breast cancer treatment. This higher risk patient population included patients with metastatic disease and tumors of up to 4 centimeters in diameter, as compared to our ICE3 study population with early-stage disease and tumors smaller than 2 centimeters in diameter, indicating a very different recurrence rate. Importantly, it further informs and supports the use cases of ProSense® across a broader range of breast cancer diagnoses, from newly diagnosed early-stage to metastatic and recurrent disease,” stated IceCure CEO Eyal Shamir. “We thank Dr. Vogl, his team, and University Hospital Frankfurt for their initiative in conducting this study and expanding the body of knowledge for the cryoablation of breast cancer.”
This independent study, which received no financial support from IceCure, retrospectively evaluated the efficacy and safety of liquid-nitrogen based CT-guided cryoablation with ProSense®. Patients were treated in out-patient settings with curative intention for non-metastatic patients, while patients with metastases were treated to achieve local tumor control. The patient population (n=45, with 56 tumors) with a mean age of 55.6 ± 12.5 years (range, 31.3–86.0 years) was very heterogeneous and different from IceCure’s ICE3 study population and included 11 patients with recurrent tumors and 21 patients with metastatic disease. Patients were observed at three, six, nine, and 12 months, respectively, and after the first year were followed up biannually. There were four cases of local tumor progression, representing a rate of 8.9%. There were no complications observed in any of the 56 ablations and initial complete ablation was achieved in 100% of cases.
Google signs litigation-free patent licence with InterDigital
Angela Morris
03 July 2024
Google signs litigation-free patent licence with InterDigitalShutterstock/RYO Alexandre
InterDigital has announced that Google signed a new licence agreement for Pixel smartphones, Fitbit wearables and other consumer electronics devices. The licence covers InterDigital’s cellular wireless, Wi-Fi and HEVC portfolios.
The pair struck the deal in private negotiations without the need for litigation. Similarly, in 2022, InterDigital announced a litigation-free renewal with Apple for $134 million annually for seven years. That deal announcement did not say whether it covered the same three portfolios in the Google licence. Nor did the parties disclose whether iPhones and other Apple devices were included.
In a statement, InterDigital Chief Licensing Officer Eeva Hakoranta commented: “This agreement with Google is another sign of the importance of our technologies to a range of consumer devices. It also strengthens our belief that, from smartphones, to wearables, and the Internet of Things, our innovation is only becoming more important in an increasingly connected world.”
No one from Google’s press team responded to a request for comment before deadline.
Google is not among the world’s largest smartphone sellers. News reports indicate it sold 2 million chipsets in Pixel smartphones in the first quarter of 2024. If so, it commands less than 1% of the market.
Counterpoint Research reports that in 2024’s first quarter – which counted 269.9 million units, a 6% year-over-year increase – the top five sellers were:
Samsung – 20% or 59.4 million units
Apple – 17% or 50.6 million units
Xiaomi – 14% or 41.6 million units
OPPO – 8% or 25.1 million units
Vivo – 7% or 21.6 million units
Other smartphone makers accounted for 34% of the market, or 87.8 million units.
Writing on LinkedIn, Avvika AB Managing Director Eric Stasik calculated that InterDigital’s average royalty per unit in 2023 was $0.48. This was based on the firm’s $549.6 million annual revenue in 2023 and that year’s 1,140 smartphone shipments.
“It's very simple. I pull down the reported licensing revenues from annual reports and normalize to the dollar using the exchange rates from the annual reports. And then I divide this number by the number of smartphone units sold during the same year (more or less.) This gives me an average royalty per unit,” he writes. “I know this does not provide an accurate picture - it is not correct to attribute all licensing income to royalties received from smartphone licensees. But it is fast and easy and revealing.”
Stasik’s analysis said InterDigital’s royalty revenues had increased since 2022, unlike other major SEP licensors – Ericsson, Nokia and Qualcomm – who have seen falling earnings. The way he put it: “InterDigital might be the smallest of these four, but they are the only ones posed for growth.”
Other pending deals
We know that InterDigital’s patent licence with Huawei expired at the end of 2023 and caused a year-on-year decline in recurring revenue in 2024 Q1.
Also, sometime this summer Samsung and InterDigital will have a hearing in their arbitration to agree to pricing terms for their cellular wireless portfolio renewal. Previously, the InterDigital-Samsung licence was valued at $80 million per year, but CFO Rich Brezski told analysts at the company’s most recent earnings call that the value will increase because of 5G technology. Yet as they continued discussions over the cellular licence, Samsung nevertheless signed a pact for smart TVs to obtain a licence to InterDigital’s Wi-Fi, video codec and ATSC 3.0 patents.
The company also has pending cases against Lenovo – it secured a German injunction in May – and OPPO, which pulled out of the German market this year because InterDigital won an injunction.