InterDigital and Samsung agree to renew license agreement – final terms determined in binding arbitration

Rhea-AI Summary

InterDigital, Inc. (NASDAQ:IDCC) announced the renewal of its patent license agreement with Samsung Electronics, transitioning to binding arbitration to finalize terms, including payment amounts. Samsung's previous license expired on December 31, 2022, with the new agreement taking effect from January 1, 2023. CEO Liren Chen emphasized the importance of amicable negotiations but acknowledged arbitration as a necessary measure for unresolved matters. InterDigital specializes in mobile and video technologies, collaborating with leading tech firms globally.

Positive

• Renewal of patent license agreement with Samsung, indicating ongoing collaboration.
• Transition to binding arbitration could lead to favorable terms for InterDigital.

Negative

• Pending arbitration process may introduce uncertainty regarding the final agreement terms and potential revenue.

WILMINGTON, Del., Jan. 03, 2023 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company today announced that it has agreed to renew its patent license agreement with Samsung Electronics. The parties will enter into binding arbitration to determine the final terms, including the amount payable by Samsung under the new agreement.

Samsung’s previous license to InterDigital’s portfolio of cellular wireless and video technologies expired on December 31^st 2022. The new license will be effective from January 1^st 2023.

“While we always prefer to conclude our license agreements through amicable good faith negotiation, independent binding arbitration provides an effective mechanism for resolving licensing disputes,” commented Liren Chen, CEO and President, InterDigital. “I welcome Samsung’s willingness to enter into a new license with us and their commitment to work through the remaining issues in arbitration.”

About InterDigital^®

InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. 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 InterDigital's recent agreement with Samsung Electronics?

InterDigital has renewed its patent license agreement with Samsung Electronics, entering binding arbitration to finalize the terms.

When did Samsung's previous license agreement with InterDigital expire?

Samsung's previous license agreement expired on December 31, 2022.

What is the significance of the binding arbitration mentioned in the press release?

Binding arbitration will determine the final terms, including payment amounts under the new agreement.

When does the new license agreement with Samsung take effect?

The new license agreement takes effect from January 1, 2023.