InterDigital and Lenovo agree to enter into new license agreement – final terms to be determined in binding arbitration
Rhea-AI Summary
InterDigital (Nasdaq: IDCC) announced an agreement to enter into a new patent license agreement with Lenovo. The final terms of the agreement will be determined through binding arbitration. As part of this process, both companies have agreed to settle all pending litigations between them.
Eeva Hakoranta, Chief Licensing Officer at InterDigital, highlighted the importance of binding arbitration as a sophisticated global dispute resolution mechanism for licensing negotiations. The arbitration will determine the terms for Lenovo's use of InterDigital's foundational wireless, video, and AI innovation in products such as smartphones and PCs.
Positive
- Agreement to enter new patent license agreement with Lenovo
- Settlement of all pending litigations between InterDigital and Lenovo
- Potential for revenue from licensing InterDigital's technology to Lenovo
Negative
- Final terms of the license agreement are yet to be determined through arbitration
- Uncertainty regarding the financial impact of the new agreement
News Market Reaction 1 Alert
On the day this news was published, IDCC gained 1.10%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
WILMINGTON, Del., Oct. 09, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video and AI technology research and development company, today announced that it agreed to enter into a new patent license agreement with Lenovo. The parties will enter into binding arbitration to determine the final terms of the new agreement.
As part of the agreement to arbitrate, both parties have agreed to settle all pending litigations between them.
“When disputes do arise in licensing negotiations, binding arbitration provides for a sophisticated global dispute resolution mechanism,” commented Eeva Hakoranta, Chief Licensing Officer, InterDigital. “I look forward to the conclusion of the arbitration and settling the terms of our new license agreement for Lenovo’s use of our foundational wireless, video and AI innovation in Lenovo’s products, such as smartphones and PCs.”
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
FAQ
What is the new agreement between InterDigital (IDCC) and Lenovo?
How will InterDigital (IDCC) and Lenovo resolve their licensing disputes?
What technologies are covered in InterDigital's (IDCC) agreement with Lenovo?
When was the agreement between InterDigital (IDCC) and Lenovo announced?
