InterDigital CEO Says Apple-Samsung Case Providing Boost
By Sarah Frier - Aug 29, 2012 1:40 PM PT
InterDigital Inc. (IDCC) Chief Executive Officer Bill Merritt said Apple Inc. (AAPL)’s legal victory over Samsung Electronics Co. (005930) demonstrated the value of patents, helping spur demand for his company’s own intellectual property.
Samsung was ordered to pay Apple about $1 billion on Aug. 24 for infringing intellectual property -- a verdict that validated businesses that rely on innovation, Merritt said today in an interview. InterDigital, a developer of wireless technology, has been trying to sell batches of its patents after abandoning a plan to sell the whole company last year.
“We’re encouraged by the value being placed on patents, and there’s strong opportunity in the market,” Merritt said at Bloomberg’s headquarters in New York. “As with any market that’s strong, you want to move quick.”
The company already agreed to sell about 1,700 patents, about 8 percent of its portfolio, to Intel Corp. (INTC) for $375 million in June. InterDigital, based in King of Prussia, Pennsylvania, said in its annual report that it received royalties from more than half of all 3G mobile devices sold last year, including ones from Samsung, Apple, Research In Motion Ltd. (RIM) and HTC Corp. (2498)
InterDigital, which has about 20,000 patents in total, said in July 2011 that it had hired Evercore Partners Inc. and Barclays Plc (JNK) to explore a possible sale of the company, seeking to capitalize on a boom in demand for patent portfolios. The company later found that buyers were more interested in portions of the portfolio worth less than $1 billion, Merritt said.
InterDigital shares rose 0.8 percent to $34.45 today in New York. The stock has declined 21 percent this year.
A jury in San Jose, California, found that Samsung infringed six of seven Apple patents at stake in the trial. The jury also determined that all of Apple’s patents at stake were valid. Apple won findings that Samsung devices diluted the value of its so-called trade dress, or how a product looks.
