On July 31, 2018, we announced that we had completed the acquisition of the patent licensing business of Technicolor, a worldwide technology leader in the media and entertainment sector. The final transaction includes the acquisition by InterDigital of approximately 18,000 patents and applications, across a broad range of technologies, including approximately 3,000 worldwide video coding patents and applications. The portfolio will also be supplemented by jointly-funded R&D collaboration, which will bring together the efforts of hundreds of engineers in InterDigital Labs and Technicolor Research and Innovation (R&I). Members of Technicolor’s licensing, legal and other support teams in offices in Rennes and Issy-les-Moulineaux, France; Princeton, New Jersey, and other locations joined InterDigital’s team of more than 300 R&D and other staff in eleven locations around the world. In addition, we have assumed Technicolor’s role as sole licensing agent for the joint licensing program with Sony Corporation relating to digital televisions and standalone computer display monitors.
Under the terms of the agreement, we paid Technicolor $150 million in cash. There is no revenue sharing associated with InterDigital’s licensing of the new portfolio in the mobile industry, but Technicolor receives 42.5% of all future cash receipts (net of estimated operating expenses) from our new licensing efforts in the consumer electronics field. As part of this transaction, we will also grant back to Technicolor a perpetual license for patents acquired in the transaction. With respect to patents generated through the jointly funded R&D efforts, we will own the patents, and Technicolor will receive a license back to the assets resulting from the targeted research conducted by its research and innovation team.
"Intellectuals solve problems; geniuses prevent them." - Albert Einstein
