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InterDigital Signs Casio Hitachi Mobile Communications to Worldwide 2G and 3G Patent License Agreement
KING OF PRUSSIA, Pa., Mar 09, 2010 (BUSINESS WIRE) -- InterDigital, Inc. (NASDAQ: IDCC) today announced that its patent licensing subsidiaries have entered into a worldwide, non-exclusive, patent license agreement with Casio Hitachi Mobile Communications Co., Ltd. ("CHMC"), headquartered in Japan. The license agreement covers the sale by CHMC of all wireless end-user terminal devices, such as mobile handsets, computers, etc., compliant with 2G and 3G cellular standards through the earlier of June 30, 2010 or the establishment of the announced mobile phone handset joint venture involving NEC Corp., Casio Computer Co., and Hitachi Ltd. InterDigital(R) expects to benefit from a one-time recognition of revenue related to past sales under this agreement and, based on the announced structure of the new joint venture, sales for covered products by the new joint venture will be included in InterDigital's total per unit royalty revenues once the new joint venture begins to operate.
"We are pleased to have resolved all outstanding patent licensing issues with CHMC," commented Lawrence Shay, President of InterDigital's patent holding subsidiaries. "This latest agreement further demonstrates the strength of our intellectual property, our global licensing program and our solid relationships with leading Japanese companies."
In addition, InterDigital has identified additional royalty obligations in a routine audit of an existing licensee. The new patent license agreement and resolution of the audit issues combined will add approximately $40 million in royalty revenue between the first and second quarters of 2010. The allocation of this revenue will depend on final resolution of the accounting treatment.
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