Apr. 8, 2014, 5:38 PM
Mar. 6, 2014, 4:10 PM
Feb. 26, 2014, 9:19 AM
- EU regulators have dropped an antritrust probe of InterDigital's (IDCC) 3G patent licensing fees in response to InterDigital's settlement with Huawei, the company that originally raised the issue with the EU.
- The EU has stepped up its scrutiny of standards-essential patent licensing practices in recent years, as evidenced by its ongoing probe of Samsung's use of standards-essential IP in its legal battles.
- Last week, the Chinese government announced it's in settlement talks with InterDigital.
Feb. 20, 2014, 2:58 PM
- In addition to beating Q4 estimates, InterDigital (IDCC +7%) is guiding for Q1 revenue of $54M-$59M, above a $53.8M consensus. The company says the guidance only accounts for recurring revenue streams (e.g. royalties), and excludes the potential impact of new deals and/or settlements.
- Q4 revenue blew away estimates thanks to the recognition of $36.4M in past royalty revenue, primarily from Pegatron (previous). Royalty and tech solutions revenue rose 34% Y/Y to $63.3M due to arbitration awards in disputes with Apple, Pegatron, and a technology solutions partner.
- Excluding a $12.5M restructuring charge taken a year ago, opex rose 9% Y/Y to $61.7M, thanks in large part to a 16% increase in patent admin/licensing costs to $36.2M.
- Q4 results, PR
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Feb. 19, 2014, 5:30 PM| 4 Comments
Feb. 19, 2014, 1:17 PM
- China's anti-monopoly regulator has made its first public remarks about its probe of Qualcomm's (QCOM +0.2%) licensing deals with local OEMs, and the comments (by mentioning the regulator has received complaints Qualcomm "abuses its dominant position in the market and charges discriminatory fees") suggest authorities aren't backing down.
- At the same time, the regulator says it's in talks with another 3G/4G patent owner, InterDigital (IDCC -1.2%), about a potential settlement. InterDigital has previously claimed the Chinese government threatened to arrest or detain its employees over its efforts to collect royalties from Huawei.
- The Qualcomm probe is widely seen as an effort to obtain lower royalty rates as Chinese 4G LTE adoption ramps. Given Qualcomm often doesn't collect royalties on sales of phones supporting China Mobile's TD-SCDMA 3G network, the launch of LTE networks by all three Chinese carriers stands to boost the percentage of local phone sales Qualcomm collects on.
- It also stands to increase Qualcomm's Chinese baseband chip share. The company mentioned on its FQ1 CC (transcript) its mid-range Snapdragon 400 processor had scored 70+ 3G/4G design wins with Chinese OEMs.
Dec. 24, 2013, 12:35 PM
- InterDigital's (IDCC +3.6%) arbitration deal with Huawei, which comes shortly after the ITC ruled against InterDigital in a patent suit against Huawei, Nokia, and ZTE, is expected to eventually yield "a global licensing agreement," says InterDigital CEO Wiliiam Merritt.
- The company's disputes with Nokia (in the process of selling its phone business to Microsoft) and ZTE are still outstanding. Shares remain 7% below where they traded prior to the ITC ruling, and are down 27% YTD in a year the Nasdaq is up over 30%.
Dec. 24, 2013, 9:10 AM
Dec. 24, 2013, 8:07 AM| Comment!
Dec. 19, 2013, 5:45 PM
- Bloomberg reports InterDigital (IDCC) has lost an ITC case it has been pursuing against Nokia, Huawei, and ZTE.
- Shares tumbled in June after an ITC administrative law judge ruled Nokia, Huawei, and ZTE didn't infringe 3G patents asserted by InterDigital. The case was then sent to the full commission for a final ruling.
Dec. 19, 2013, 5:38 PM
Dec. 16, 2013, 4:20 PM
Dec. 6, 2013, 2:18 PM
- Amid intensifying scrutiny of software patents and perceived patent trolls, the Supreme Court says it will review whether companies should be able to obtain monopolies on software-related business methods via patent law.
- The review could represent a challenge to the Federal Circuit Appeals Court, which has routinely sided with patent owners in disputes related to software IP and other matters.
- The Supreme Court's decision comes shortly after the House passed the Innovation Act, a bill whose supporters argue will significantly cut the number of frivolous U.S. patent suits filed each year. Among other things, the bill requires litigants to list which patents are being infringed when making a complaint, and makes plaintiffs pay court costs if they lose.
- The White House, which earlier in 2013 issued 5 executive actions and 7 legislative proposals aimed at patent trolls, has voiced its support for the Innovation Act.
- Potentially affected companies: ACTG, RPXC, VRNG, VHC, WILN, IDCC, RMBS, PRKR.
Nov. 4, 2013, 11:01 AM
- InterDigital (IDCC -2.8%) expects Q4 revenue of $80M-$83M, of which $53M-$56M will come from "current revenue" and $27M from "the interplay between awards received under two separate customer arbitrations." While guidance easily exceeds a $57M consensus, the arbitration figure was disclosed last Thursday in InterDigital's Q3 report, which led shares to surge. (PR)
- InterDigital, whose quarterly royalties are based on the prior quarter's sales, says it saw a drop in royalties from some "historically strong per-unit licensees" (BlackBerry and HTC are likely culprits), but adds new licensing deals with contract manufacturers and diversifying OEM supply chains (i.e. the use of more contract manufacturers) will nonetheless allow the company to see major Q/Q growth in recurring IP licensing revenue.
IDCC vs. ETF Alternatives
InterDigital Inc designs and develops technologies that enable and enhance wireless communications and capabilities. The Company is a contributor of intellectual property to the wireless communications industry.
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