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Adeia, the IP licensing brand of Xperi (NASDAQ: XPER), announced a ruling from the Federal Court of Canada favoring Videotron, deeming four patents invalid. Despite this unfavorable decision, Adeia maintains that it has no impact on its 2022 financial guidance, and the company is considering an appeal. The patents in question constitute a small segment of Adeia's portfolio of nearly 10,000 patents. The company remains optimistic about ongoing licensing efforts across the industry, including a continuing lawsuit against Videotron regarding other patents.
Positive
No impact on 2022 financial guidance despite unfavorable ruling.
Ongoing litigation against Videotron regarding other patents may lead to further licensing opportunities.
Negative
Federal Court ruled four patents invalid, which could weaken Adeia's position.
The decision could potentially affect future licensing negotiations.
Unfavorable decision has no impact on 2022 guidance
SAN JOSE, Calif.--(BUSINESS WIRE)--
Adeia, the newly launched brand for the intellectual property (IP) licensing business of Xperi Holding Corporation (NASDAQ: XPER) (“Xperi” or the “Company”), announced today that Rovi Guides, Inc. (“Rovi”), received a decision issued by The Honourable Justice Lafrenière of the Federal Court of Canada finding in favor of Videotron and its legacy illico platform.
“We are disappointed with today’s ruling, however it has no impact on our 2022 guidance. We are exploring all our options, including appealing the decision. We will continue to pursue our rights as we seek a mutually acceptable agreement with Videotron to allow the ongoing use of our patented technology, just as we have done broadly with the other major Canadian and US Pay-TV providers,” said Paul Davis, Adeia’s president. “Notably, the patents in this case represent a very small fraction of our overall portfolio of nearly 10,000 patent assets and only about one percent of the total Canadian portfolio. Our IP business outlook remains strong as we continue to successfully license, renew or extend licensing agreements across the industry, including in Canada.”
Specifically, the Court found each of the asserted claims of the four patents involved in the case were invalid. Last year, the Company filed a second lawsuit accusing Videotron of infringing four different patents relating to advanced DVR functionality, delivering video programming in multiple formats and switching between broadcast and streaming programs. This second litigation covers Videotron’s next-generation Helix platform. That lawsuit will continue forward.
The full decision is currently subject to confidentiality restrictions. As more information becomes available, the Company will determine whether further comment on the decision is appropriate.
About Adeia
Adeia invents, develops and licenses fundamental innovations that shape the way millions of people explore and experience entertainment in an increasingly connected world. From TVs to smartphones, and across all types of entertainment experiences, Adeia’s technologies allow users to manage content and connections in a way that is smart, immersive and personal. For more information, please visit adeia.com.
About Xperi Holding Corporation
Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (Adeia, DTS, HD Radio, IMAX Enhanced, TiVo), and by its startup, Perceive, make entertainment more entertaining, and smart devices smarter. Xperi technologies are integrated into billions of consumer devices, media platforms, and semiconductors worldwide, driving increased value for partners, customers and consumers.
Xperi, Adeia, DTS, IMAX Enhanced, HD Radio, Perceive, TiVo and their respective logos are trademarks or registered trademarks of affiliated companies of Xperi Holding Corporation in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Xperi’s current expectations, estimates and projections about the Videotron decision, all of which are subject to change. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the anticipated benefits of the transaction. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenue, cost savings, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business strategies, and expansion and growth of the Company’s businesses; the Company’s ability to implement its business strategy; pricing trends, including the Company’s ability to achieve economies of scale; the ability of the Company to retain and hire key personnel; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; failure to remediate the material weaknesses in our internal control over financial reporting; the evolving legal, regulatory and tax regimes under which the 4 Company operates; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, including Russia’s invasion of Ukraine, and natural disasters; the extent to which the COVID-19 pandemic continues to have an adverse impact on our business, results of operations, and financial condition will depend on future developments, including measures taken in response to the pandemic, which are highly uncertain and cannot be predicted; the impact of semiconductor supply chain constraints on our customers; and any plans regarding the separation of the Company’s IP and Product businesses. These risks, as well as other risks associated with the business, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
