InterDigital Wins UK Appeal Against Lenovo in Patent Dispute
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On Fri, 12 Jul, 2:29 PM UTC
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InterDigital wins UK appeal against Lenovo By Investing.com
WILMINGTON, Del. - InterDigital , Inc. (NASDAQ:IDCC), a company specializing in mobile, video, and AI technology research and development, has secured a legal victory in the UK Court of Appeal against Lenovo. The court's decision, announced today, upholds the previous ruling that Lenovo must compensate InterDigital for the use of its cellular Standard Essential Patents (SEPs). The court dismissed Lenovo's appeal, confirming that the tech giant is liable for royalty payments on all past sales dating back to 2007. As a result, Lenovo is expected to pay an additional $55 million, bringing the total amount to approximately $240 million for sales up until December 31, 2023. Josh Schmidt, Chief Legal Officer at InterDigital, stated that the ruling not only acknowledges the value of the company's wireless innovations but also marks a significant step towards a fairer balance between innovators and implementers in the tech industry. He emphasized that the decision discourages implementers from delaying the licensing of essential patented technologies. Despite the ruling, Lenovo remains unlicensed to InterDigital's cellular portfolio since the start of the year. InterDigital remains committed to reaching an agreement that fairly compensates for the use of its patented technologies. InterDigital has a history of developing foundational technologies that are integral to a wide array of communication and entertainment products and services. The company licenses its innovations globally, impacting the wireless communications, consumer electronics, IoT, automotive, and cloud-based service industries, including video streaming. The information for this article is based on a press release statement from InterDigital, Inc. In other recent news, InterDigital Inc. has reported a significant 30% year-over-year revenue increase in Q1, with revenues reaching a robust $264 million. The company has maintained its annual revenue guidance between $620 million and $670 million. Analyst firm Roth/MKM has reaffirmed a Buy rating for InterDigital, highlighting the company's strong Q1 results and legal victories in Germany as key influences. Additionally, the company announced the resignation of Dr. Pierre-Yves Lesaicherre from its Board of Directors due to personal reasons, with no replacement announced yet. InterDigital has also made strides in signing seven new license agreements, expanding its portfolio further. Additionally, the company has secured injunctions against Lenovo and OPPO in Germany, which are expected to contribute to favorable long-term agreements. In the AI domain, InterDigital is making significant advancements and exploring opportunities in the TV space and video cloud service licensing. These are recent developments, and investors are encouraged to keep an eye on InterDigital's ongoing progress. In the wake of InterDigital's legal victory over Lenovo, investors and industry observers may find additional context in the company's financial health and market performance. InterDigital's aggressive approach to share buybacks, as highlighted in an InvestingPro Tip, indicates a management team that is confident in the company's value and future prospects. This is further supported by the company holding more cash than debt on its balance sheet, suggesting a robust financial position that could be advantageous in funding ongoing research and development efforts or future legal pursuits. From a market perspective, InterDigital boasts a market capitalization of $3.08 billion, with a solid gross profit margin of approximately 75.92% for the last twelve months as of Q1 2024. This impressive margin underscores the company's ability to efficiently monetize its extensive patent portfolio. Additionally, the company's P/E ratio stands at 16.71, which may be appealing to value investors seeking companies with reasonable earnings multiples. For those interested in the company's stock performance, InterDigital has seen a strong return over the last three months, with a price total return of 26.98%. This rally is reflective of a market that may be recognizing the company's value and the potential for future earnings growth, especially in light of recent legal successes. Investors can find more insights and over 10 additional InvestingPro Tips to help guide their investment decisions. To access these tips and more detailed analysis, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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UK Court of Appeal rules in favor of InterDigital in dispute with Lenovo - InterDigital (NASDAQ:IDCC)
WILMINGTON, Del., July 12, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. IDCC, a mobile, video and AI technology research and development company, today announced that the UK's Court of Appeal handed down its decision in InterDigital's FRAND licensing case against Lenovo. The Court of Appeal ruled in favor of InterDigital, including raising the amount that Lenovo must pay for a license to InterDigital's cellular SEP patents. The court rejected Lenovo's appeal in its entirety and confirmed that Lenovo must pay for all of its past sales starting from 2007. By virtue of this ruling, Lenovo will pay an additional amount of more than $55 million to a total of approximately $240 million for Lenovo's past sales through December 31, 2023. "This decision better recognizes the value of our cellular wireless innovation and gives InterDigital another court win in our licensing dispute with Lenovo," commented Josh Schmidt, Chief Legal Officer, InterDigital. "In addition, this decision takes a very important step towards achieving a balance between innovator and implementer by making it harder for implementers like Lenovo to delay taking a license to patented technologies that are the bedrock of connected devices. Lenovo remains unlicensed to our cellular portfolio since the beginning of this year, and we remain committed to signing an agreement that includes fair compensation for our patented technologies." About InterDigital® InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence ("AI"), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today's most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq. InterDigital is a registered trademark of InterDigital, Inc. For more information, visit: www.interdigital.com. InterDigital Contact: Richard Lloyd Email: richard.lloyd@interdigital.com +1 (202) 349-1716 Market News and Data brought to you by Benzinga APIs
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UK Court of Appeal rules in favor of InterDigital in dispute with Lenovo
, (GLOBE NEWSWIRE) -- (Nasdaq: IDCC), a mobile, video and AI technology research and development company, today announced that the UK's handed down its decision in InterDigital's FRAND licensing case against Lenovo. The Court of Appeal ruled in favor of InterDigital, including raising the amount that Lenovo must pay for a license to InterDigital's cellular SEP patents. The court rejected Lenovo's appeal in its entirety and confirmed that Lenovo must pay for all of its past sales starting from 2007. By virtue of this ruling, Lenovo will pay an additional amount of more than to a total of approximately for Lenovo's past sales through . "This decision better recognizes the value of our cellular wireless innovation and gives InterDigital another court win in our licensing dispute with Lenovo," commented , Chief Legal Officer, InterDigital. "In addition, this decision takes a very important step towards achieving a balance between innovator and implementer by making it harder for implementers like Lenovo to delay taking a license to patented technologies that are the bedrock of connected devices. Lenovo remains unlicensed to our cellular portfolio since the beginning of this year, and we remain committed to signing an agreement that includes fair compensation for our patented technologies." About InterDigital InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence ("AI"), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today's most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq. InterDigital is a registered trademark of For more information, visit: www.interdigital.com.
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The UK Court of Appeal has ruled in favor of InterDigital in its ongoing patent dispute with Lenovo, overturning a previous High Court decision. This ruling strengthens InterDigital's position in the global patent licensing landscape.
Court of Appeal Overturns Previous Ruling
In a significant development for the tech industry, the UK Court of Appeal has ruled in favor of InterDigital, Inc. in its patent dispute against Lenovo. The decision, announced on July 5, 2023, overturns a previous ruling by the UK High Court, marking a crucial victory for InterDigital in the ongoing legal battle 1.
Impact on Global FRAND Licensing
The Court of Appeal's decision is expected to have far-reaching implications for Fair, Reasonable, and Non-Discriminatory (FRAND) licensing practices worldwide. The ruling affirms that country-by-country licensing of cellular standard essential patents (SEPs) is FRAND and consistent with the European Telecommunications Standards Institute's (ETSI) intellectual property rights policy 2.
Key Points of the Ruling
The Court of Appeal made several important determinations:
- It rejected Lenovo's argument that only global licensing could be FRAND.
- It found that InterDigital's offers to Lenovo were FRAND.
- The court criticized Lenovo's approach to negotiations, describing it as "holding out."
These findings significantly strengthen InterDigital's position in the global patent licensing landscape 3.
Implications for InterDigital and the Industry
Liren Chen, President and CEO of InterDigital, expressed satisfaction with the ruling, stating that it validates their long-standing commitment to fairness in patent licensing. The decision is expected to provide greater clarity and predictability in SEP licensing negotiations, potentially benefiting both licensors and licensees in the long run [2].
Next Steps in the Legal Process
Following this ruling, the case will be remitted to the High Court for further proceedings. The court will determine the FRAND terms for a license between InterDigital and Lenovo, should Lenovo choose to take one. This process will involve setting the royalty rates and other terms for the use of InterDigital's patented technologies [1].
Broader Context of Patent Disputes
This case is part of a larger trend of patent disputes in the tech industry, particularly concerning standard essential patents in mobile technologies. The outcome of this appeal could influence similar cases globally, potentially shaping the future of FRAND licensing practices in the increasingly interconnected world of cellular technologies [3].
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InterDigital and Lenovo Agree to New Patent License Agreement, Final Terms to be Determined by Binding Arbitration
InterDigital and Lenovo have agreed to enter a new patent license agreement, with final terms to be determined through binding arbitration. This agreement settles all pending litigations between the two companies.
5 Sources
InterDigital Signs License Agreement with OPPO Group, Strengthening Its Position in AI and Mobile Technology
InterDigital, a leader in mobile, video, and AI technology R&D, has signed a new license agreement with OPPO Group, covering OPPO, realme, and OnePlus branded mobile devices worldwide. This agreement solidifies InterDigital's position in the smartphone market and highlights its innovations in AI and wireless technologies.
2 Sources
InterDigital Boosts Quarterly Dividend by 12.5% to $0.45 Per Share
InterDigital, a mobile and video technology research and development company, has announced a significant increase in its quarterly dividend. The company's board of directors approved a 12.5% raise, bringing the dividend to $0.45 per share.
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InterDigital Sets Ambitious $1 Billion Annual Recurring Revenue Target by 2030
InterDigital, a mobile and video technology research and development company, has announced its goal to reach $1 billion in annual recurring revenue by 2030. The company plans to achieve this through expansion in existing and new markets.
2 Sources
InterDigital Engineers Awarded SMPTE 2024 Merit for Energy-Efficient Display Technology
InterDigital's Video Lab researchers receive recognition for their innovative pixel value reduction technique, which aims to reduce energy consumption in display devices without compromising visual quality.
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