InterDigital Inc (IDCC) Options

FanofSpringsteen are you tired of winning

The first time i bought this stock it roughly quoted $8. Was a nice time. But even with strong fundamentals, IDCC stock value is decreasing and i might be wrong but i think it's better to be out. Regarding the sell off pressure and also the €/$ rate.I never imagined that such a situation could happen. 😰

Just picked up a few trading shares this morning..AMHO...eom

“A stock market or market of stocks”. When the dust settles…Idcc p/e is @ $16 which is still fair. There are/were a lot of very overvalued stocks. The whole tariff kerfuffel has given the market the excuse for the overdue correction. Most every stock is caught up in the smack down, hopefully IDCC rises above due to its strong fundamentals.

No it is not all good.  Intentionally throwing world trade into chaos is all bad and has the potential to totally tank the United Staes economy.

 Dws... There will be more upheavals, I'm now out, despite stock quality. Too risky market by now. 

It's all good. Buy here. 

Anyone tired of winning yet?

Disney's answer last night
It appears that you are requesting an analysis of the legal document titled "Doc-42-Disney-answer-to-complaint.pdf," which is a court filing by Disney in response to a complaint from InterDigital. This document includes Disney's formal answer, affirmative defenses, and counterclaims in a legal dispute involving allegations of patent infringement related to video streaming technologies.
Here is a brief analysis based on the provided text:
Overview of the Case
The case involves InterDigital, Inc. and its affiliated entities (the plaintiffs) alleging that Disney and its subsidiaries (the defendants) have infringed on certain patents related to video coding technology. Disney denies these allegations and provides a detailed response to each claim.
Key Elements of Disney's Response
1. General Denial:
• Disney denies all allegations of patent infringement unless explicitly admitted.
• The company asserts that its responses are based on current information and reserves the right to amend its defenses as more information becomes available.
2. Admissions:
• Disney admits to certain factual details, such as corporate structure, business operations, and the use of specific video coding technologies (e.g., AVC and HEVC) in its streaming services like Disney+ and Hulu.
• However, these admissions are limited to factual matters and do not concede any liability or wrongdoing.
3. Affirmative Defenses:
• While the specific affirmative defenses are not fully detailed in the excerpt provided, these typically include arguments such as non-infringement, invalidity of the asserted patents, or lack of standing by the plaintiffs.
4. Counterclaims:
• Disney has filed counterclaims against InterDigital, although the specific nature of these counterclaims is not included in the provided text. Counterclaims in such cases often involve challenges to the validity or enforceability of the asserted patents.
Jurisdiction and Venue
• Disney acknowledges that jurisdiction and venue are proper for this case but emphasizes that this acknowledgment is limited to this specific action.
Technical Details
• The dispute centers on video streaming technologies, specifically Advanced Video Coding (AVC) and High-Efficiency Video Coding (HEVC), which are widely used standards in digital video compression.
• Disney admits to using these technologies but disputes any infringement claims.
Potential Implications
1. Patent Infringement Dispute:
• This case highlights ongoing legal battles over intellectual property in the highly competitive streaming industry.
• The outcome could impact licensing agreements and the use of patented technologies in streaming platforms.
2. Strategic Defense by Disney:
• By denying most allegations and filing counterclaims, Disney aims to challenge both the validity of InterDigital's patents and the applicability of those patents to its services.
• This approach is common in complex patent litigation cases.
3. Broader Industry Impact:
• The case may set precedents for how patent disputes involving standard-essential technologies are resolved.
• It could influence negotiations between technology licensors and content distributors.

FWIW - AI of Disney suit
Answer Sources 1 2 tasks
Doc-1_Complaint
Doc-1_Complaint.pdf
The attached document appears to be a legal complaint filed by InterDigital, Inc. and its
subsidiaries against The Walt Disney Company and various related entities, including Hulu,
ESPN, and BAMTech. Below is an analysis of key aspects of the complaint:
Overview of the Complaint
Plaintiffs: The plaintiffs include InterDigital, Inc., InterDigital VC Holdings, Inc., InterDigital
Madison Patent Holdings, SAS, and InterDigital CE Patent Holdings, SAS. These entities are
collectively referred to as "InterDigital" and specialize in patented technologies related to
video streaming.
Defendants: The defendants are The Walt Disney Company and its subsidiaries, including
Disney Media and Entertainment Distribution LLC, Disney DTC LLC, Disney Streaming
Services LLC, Hulu LLC, ESPN Inc., BAMTech LLC, and others. These entities are collectively
referred to as "Disney."
Nature of the Action: The complaint alleges patent infringement by Disney regarding several
U.S. patents owned by InterDigital. These patents cover technologies critical to video
streaming efficiency and efficacy.
analysis
Home Discover Spaces Library
Open in App
Key Allegations
1.
Patent Infringement
: The complaint claims that Disney has directly infringed multiple patentsowned by InterDigital:
U.S. Patent No. 8,406,301
U.S. Patent No. 10,805,610
U.S. Patent No. 11,381,818
U.S. Patent No. 9,185,268
U.S. Patent No. 8,085,297
These patents are collectively referred to as the "Asserted Patents."
2.
Efforts to Resolve Without Litigation
: InterDigital states that it attempted to engage Disney inlicensing discussions starting in July 2022 but was unsuccessful in reaching an agreement.
3.
Ongoing Infringement
: The plaintiffs allege that Disney continues to use their patentedtechnologies without authorization in its video streaming services (Disney+, Hulu,ESPN+, etc.).
Relief Sought
InterDigital seeks:
A judgment confirming patent infringement by Disney.
Relief for damages caused by the infringement.
A jury trial.
Legal Context
InterDigital emphasizes its history of resolving unauthorized patent use through negotiatedlicenses rather than litigation but claims that Disney's refusal to cooperate necessitatedthis lawsuit.
Home
Discover
Spaces
Library
People also ask
What are the key components of a thorough analysis
How can I improve my analytical skills
What tools are best for data analysis
How do I conduct a SWOT analysis
What are common pitfalls in analysis
Implications
If successful, this case could lead to significant financial penalties for Disney or require
them to enter into licensing agreements with InterDigital for continued use of the
patented technologies.
This document provides detailed allegations and legal arguments supporting InterDigital's
claims against Disney's subsidiaries involved in video streaming operations.
Home Discover Spaces Library

Company Release - 4/1/2025InterDigital contributions to HDR technologies enhance live sports, entertainment, and broadcast innovationWILMINGTON, Del., April 01, 2025 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video and AI technology research and development company, today announced that it will be showcasing high-dynamic range (HDR) video streaming technologies at NAB 2025, taking place in Las Vegas from April 5 – 9. As a critical enabler of advanced video technologies, InterDigital will showcase innovation driving “HDR Without Limits” alongside partners at the ATSC NextGen TV, Ultra HD Forum, and Advanced HDR by Technicolor booths.HDR technology delivers video content with improved contrast, brightness, and color range, which has accelerated its adoption in both production and distribution. InterDigital’s HDR innovation technologies enable the creation of premium HDR and standard dynamic range (SDR) content in a single production workflow, allowing broadcasters and streaming providers to meet consumers’ growing demands for high-quality HDR content. InterDigital and Philips collaborate under the Advanced HDR by Technicolor brand to develop production, distribution, and display solutions that deliver premium live sport viewing experiences with more vibrant colors, detail, and contrast for broadcast and streaming distribution workflows.“The power of HDR technology has been adopted across major markets, enabling broadcasters to test and refine HDR solutions for large-scale broadcasting and streaming. We’re excited to showcase the benefits of “HDR Without Limits” at NAB this year,” said Valérie Allié, Senior Director of Media Services at InterDigital. “InterDigital’s video heritage and contributions to Advanced HDR by Technicolor solutions underpins superior quality video and helps broadcasters deliver exceptional content without distribution constraints.”As part of the Advanced HDR by Technicolor demonstrations at NAB, InterDigital will display a solution for single-master, dynamic, and tunable HDR workflows that allow creative control for the best viewer experience and highlight how broadcasters and content creators can and have embraced these dynamic workflows for premium HDR content, while ensuring interoperability across production and distribution systems.At NAB, visitors can experience “HDR Without Limits” at several partner booths, including:To learn more about Advanced HDR by Technicolor, visit:?https://www.globenewswire.com/Tracker?data=luQ-CYi_58nQDn1CGrknlfkVse5S9YvT_dEVSEfeI6PacUnDFAhfET0w6WKOuOILVruZYQ_mHGo2uRA1dqUZdYP3TnMVWFelPVy5r-s2FGEjSIVtxVX0n0_cDi8YrYtHwXWq8DsgXMaTk9zQ7owQkw==    

I hope those who wanted what is happening are happy. I expected nothing and that is what I am getting. So revel in your reality. Live long and prosper IDCC.

IDCC short interest as of 3/14/25 @ 2.09 M shares, down from 2.18 M shares on 2/28/25.

Nice recap article seen on X
https://beyondspx.com/article/interdigital-s-relentless-innovation-powering-its-diversified-growth

InterDigital's Relentless Innovation Powering its Diversified Growth

Published on March 11, 2025 | Ticker: IDCC
InterDigital, Inc. (NASDAQ:IDCC) is a global leader in mobile, video, and artificial intelligence (AI) technology research and development. With a rich history of innovation spanning over five decades, the company has established itself as a formidable force in shaping the future of wireless communication, video delivery, and emerging AI applications.

Company Background

InterDigital was incorporated in 1972 and conducted its initial public offering in November 1981. The company has a long history as a global research and development company focused primarily on wireless, video, and related technologies. Over the years, InterDigital's 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 4G and today's most advanced Wi-Fi technologies.

InterDigital has contributed technology to wireless standards including the 3G, 4G, and 5G cellular standards as well as the IEEE 802.11 suite of Wi-Fi standards. The company has also contributed technology to video standards established by groups such as MPEG, VCEG, JCT-VC, and JVET. InterDigital's patented inventions have been implemented in a variety of products and services, from smartphones and tablets to televisions, laptops, and cloud-based video streaming.

Business Model and Revenue Streams

The company derives the majority of its revenue from patent licensing. Over the years, InterDigital has successfully entered into patent license agreements with many leading mobile communications and consumer electronics companies globally, including Apple, Samsung, Google, and LG, among others. The company has also faced challenges in enforcing its intellectual property rights, leading to various legal proceedings and arbitrations over time to defend the value of its innovations.

InterDigital's business model is rooted in licensing its patented technologies to industry leaders, enabling the company to capitalize on the widespread adoption of its innovations. This strategy has allowed InterDigital to maintain a diversified revenue stream, with significant contributions from both its smartphone and consumer electronics & IoT (CE-IoT) business segments.

Recent Performance

In 2024, InterDigital delivered its best business results in the company's history, with total revenue reaching a record $869 million, representing a 58% year-over-year increase. This impressive performance was driven by the company's success in signing new license agreements, including with major players such as OPPO, Google, and Samsung TV.

The company's smartphone business remains a core pillar, with InterDigital now licensing seven of the ten largest smartphone vendors, collectively accounting for approximately 80% of the global smartphone market. This broad customer base has provided the company with a strong and recurring revenue stream, further bolstered by its ability to renew existing agreements at higher royalty rates.

Equally impressive is InterDigital's growth in the CE-IoT segment, which contributed over 30% of the company's total revenue in 2024. This segment has become a significant growth driver, with InterDigital signing landmark deals with leading TV manufacturers and expanding its footprint in the rapidly evolving IoT landscape.

Technology Leadership

The company's focus on video technology has also positioned it as a key player in the thriving video services industry. InterDigital's innovations in areas such as video coding, high dynamic range, and implementation patents have caught the attention of major streaming platforms, leading the company to initiate enforcement actions against industry giants like Disney.

InterDigital's commitment to innovation is not limited to its core business areas. The company has also made significant strides in the field of AI, leveraging its expertise in wireless and video technologies to develop cutting-edge solutions. In 2024, InterDigital was recognized for its outstanding innovation in wireless-related AI, receiving an award from FierceWireless for its work on AI-empowered receiver design for 6G communication.

Financials

The company's financial position remains robust, with a strong balance sheet and healthy cash flow generation. This solid financial foundation has enabled the company to consistently return capital to shareholders, with $110 million returned in 2024 through share buybacks and dividends.

In 2024, InterDigital reported annual revenue of $869 million, net income of $359 million, operating cash flow of $272 million, and free cash flow of $209 million. The fourth quarter of 2024 was particularly strong, with revenue of $253 million and net income of $133 million. The company experienced impressive 140% year-over-year revenue growth in Q4, driven primarily by new agreements that closed after the prior guidance, including catch-up revenue of $136 million related to Q4 license agreements with OPPO, Lenovo, and ZTE.

InterDigital's financial performance has shown consistent growth, with a compound annual growth rate (CAGR) of 25% in total revenue over the past four years. This growth has been driven by the company's success in both its wireless and video technology segments.

Geographic Performance

InterDigital's revenue is primarily derived from international markets, with a significant focus on Asia. In 2024, revenue from China accounted for 43.6% of total revenue, South Korea 30.6%, and the United States 22.9%. This geographic diversity highlights the global reach of InterDigital's technology licensing business.

Liquidity

As of the end of 2024, InterDigital had $958 million in cash, cash equivalents, and short-term investments, with net cash exceeding $500 million. The company's strong liquidity position is further bolstered by $1.4 billion of cash payments due under contracted fixed price agreements, including conservative estimates of minimum cash receipts expected from the Samsung and Lenovo arbitrations.

InterDigital's financial ratios underscore its solid financial position. The company reported a debt-to-equity ratio of 0.57, a current ratio of 1.70, and a quick ratio of 1.70, indicating strong short-term liquidity and a manageable debt load.

Business Overview

InterDigital operates primarily in two key product segments: Wireless Technology and Video Technology. The company's wholly owned subsidiaries held a portfolio of more than 33,000 patents and patent applications related to wireless communications, video coding, display technology, and other areas as of December 31, 2024.

In the Wireless Technology segment, InterDigital focuses on cellular standards ranging from 3G to 5G and beyond. The company's innovations are used in a wide range of wireless products and networks, and it licenses these patented inventions to various companies, including makers of wireless devices, consumer electronics, and internet of things (IoT) products. In 2024, recurring revenues from the Smartphone and CE, IoT/Auto product groupings, which encompass wireless communications devices, accounted for $317 million and $89 million, respectively, of the company's total revenues.

The Video Technology segment focuses on video processing and video encoding/decoding technology. InterDigital's video technology innovations are utilized in various video-enabled products and services, such as streaming video, user-generated content sharing, video conferencing, and gaming. The company licenses its video coding patents and technologies to manufacturers of consumer electronics and providers of cloud-based video services.

Future Outlook

Looking ahead, InterDigital has set ambitious growth targets, aiming to achieve more than $1 billion in annual recurring revenue and $600 million in adjusted EBITDA by 2030. The company's strategic focus on expanding its licensing programs, both in the smartphone and CE-IoT segments, as well as its foray into the video services industry, positions it well to deliver on these objectives.

For 2025, InterDigital has provided guidance of total revenue in the range of $660 million to $760 million, adjusted EBITDA of $400 million to $495 million, and non-GAAP diluted EPS of $9.69 to $12.92. The company expects to improve upon the strong free cash flow delivered in 2024, anticipating double-digit growth in free cash flow for 2025. InterDigital ended 2024 with $468 million in annualized recurring revenue (ARR) and expects to drive double-digit growth in ARR by the end of 2025.

In a show of confidence in its future prospects, InterDigital's Board of Directors approved a 33% increase in the dividend from $0.45 to $0.60 per share.

Moreover, InterDigital's unwavering commitment to innovation and its ability to consistently turn its research and development efforts into valuable intellectual property have been key differentiators. The company's extensive patent portfolio and leadership in standards-setting organizations further solidify its position as a trusted partner for industry players seeking to leverage cutting-edge technologies.

In conclusion, InterDigital's relentless pursuit of innovation, its diversified revenue streams, and its strong financial foundation make it a compelling investment opportunity in the dynamic technology sector. As the company continues to capitalize on the growing demand for its wireless, video, and AI solutions, investors can look forward to witnessing its sustained growth and value creation in the years to come.

Scooby it is within the arb time frames and procedures for rendering deciaions. If something comes up from the parties, arb panel ir court it could delay the decision.

Apparently they are in no rush to render their decision.

Orient from what I recall the arbitration concluded in October so the decision should be rendered to the parties by April.  Which wide bode well for 1st qtr earnings.

i have to believe that the delay is due to the video compression patents for 6g and beyond ...this i hope will pave the way for the frand rate that disney etc will need to abide by...the asian countries with the exception of china have traditionally honored the patent process

IMO we should be due for Samsung arbitration result soon...The American Arbitration Association (AAA) suggests that arbitration cases are resolved within 11.6 months, while cases that go to hearing can take around 16 months (From AI generated info)

eagle please name the chips that IDCC imports.
IDCC does not manufacture anything.

IMO nothing has changed with IDCC....good 1st quarter, pending samsung resolution, tesla licensing, and other potential licensing deals..good fundamentals..dividend increase..immune to tarriff impact...it is the stock to own in this environment...AMHO...

Correction...which IDCC clients import.

It would appear to me that the price drop is in reaction to Trump's threat to levy a 25% tariff on computer chips which IDCC imports. There is no other justification!

Tomcat, i agree with you. This decline is not pleasant but not worrying at this stage given the volatility of the markets. If there had been bad news coming, the trading volume would have been much higher to accompany this decline.JMHO

Doctor,

I am still here, but here I have been since 1995!

Today is probably just profit taking. I hope that is it. If you look at the charts, you will see that it happens.

This company's best days are ahead of it - in my opinion! 6G and a whole world of AI and streaming video awaits. And the best part is that IDCC is much less expensive (P.E. ratio) than similar companies in these areas.

I am staying put.

IMHO - Tomcat

What was the purported reason for our punishment today?
A $7.55 haircut was not pleasant.
It has been awfully quiet here lately.
Did everyone cash out and are now traveling and spending their fortunes?
That's what I should have done.
MD

Interesting volume at the close...1.26 million shares for the day.

Doing well and I am so happy to hear you followed my advice. I hope other long timers did as well. So you paid about $4-5 in tax on the conversion on each share and now you can sell them for $220 (and hopefully higher) tax free. Not a bad deal, congrats. Those Roth conversions done when you could undo them were a tax gift that I used numerous times. It allowed me to retire early at 56 in 2020.

Hi DD, I remember you.  You recommended converting to a Roth, which I did when IDCC was about $11. Thank you for the great advice, and I hope you are doing well.

Some old timers may remember me, I was heavily into IDCC for many years but got out I think in about 2008-2010 I think but not sure. I follow the company a little since IDCC was for a long time my largest investment and now have just a token amount as a result of inheritance.

Anyway, I found this article discussing patent decisions in the UK during 2024 that has a section on IDCC that I thought many would find of interest. It is case #8 beginning on page 21.

Happy for IDCC to finally get some respect, too bad the thieving scum never truly paid what they should have over the years, IDCC would have been even better for those who held.

https://link.springer.com/content/pdf/10.1007/s40319-025-01573-w.pdf

Looks like there was some insider sales over tha past few days in March. Is this the time wheree the insiders are exercising and selling restricted stock awards?

Withe the price target increasing and several potential new licenses, I would think they would hold on th their awards.

Gamco by the way u can readily accept that Price target.

Gamco, its interesting that the Lenovo IP boss and Laura the chief Legal Officer are both out at the same time. Maybe IDCC put the big IP boot on Lenovo's neck and Lenovo wants someeone in the company to be held responsible.

Point & Figure chart as of 3/19/25:
[a favorite of Teecee56]
PRICE OBJECTIVE: $281.00 as of 3/19/25

https://stockcharts.com/freecharts/pnf.php?c=IDCC,PWTADANRBO[PA][D][F1!3!!!2!20]#google_vignette

EXCLUSIVE: Lenovo IP boss John Mulgrew steps down
Adam Houldsworth
17 March 2025

The CIPO will leave Lenovo at the end of today as part of a reshuffle that has also seen CLO Laura Quatela retire from the company

Orient it would be nice to have IDCC AI in the 6G standards, with a TESLA P/E of 110.

IMO IDCC is in the right field in developing AI applications for 6G...From Jessen Huang's keynote address... AI native wireless hardware, software and architecture for 6G. Next-generation wireless networks must be fundamentally integrated with AI to seamlessly connect hundreds of billions of phones, sensors, cameras, robots and autonomous vehicles. AI-native wireless networks will provide enhanced services for billions of users and set new standards in spectral efficiency — the rate at which data can be transmitted over a given bandwidth. They will also offer groundbreaking performance and resource utilization while creating new revenue streams for telecommunications companies
Next-generation wireless networks must be fundamentally integrated with AI to seamlessly connect hundreds of billions of phones, sensors, cameras, robots and autonomous vehicles. AI-native wireless networks will provide enhanced services for billions of users and set new standards in spectral efficiency — the rate at which data can be transmitted over a given bandwidth. They will also offer groundbreaking performance and resource utilization while creating new revenue streams for telecommunications companies

https://www.marketscreener.com/quote/stock/NVIDIA-CORPORATION-57355629/news/NVIDIA-and-Telecom-Industry-Leaders-to-Develop-AI-Native-Wireless-Networks-for-6G-49365930/

Is there a link?  Thanks 

My message was cutoff.

Scooby the following from IDCC prior earnings announcement pertains to your two questions.

so true cat especially with our earnings and future potential...when you look at market average for the p/e ratios and our marketplace is somewhere in the 40x range and we are sitting at 17-19x with huge potential growth in video compression etc we could be sitting on a qcom of the early 2000s....but as you know we have had these expectations for years now and still holding

Lumpy,

I ate some Oreos with green stuff this weekend!

For YEARS, shorts in IDCC lived large - cottled and protected, entitlement shorts.

So COOL to see how things have changed here!!

Happy St Patty's Day!! Green all over!!

Tomcat

where is the oreeno man ? news of a leak seems to be out with this type of appreciation , or tutes have gotten their buys based on last weeks release and letting it run ....hope it holds

Would IDCC be required to put out a press release when the arbitration result finally comes back?  Will they have to update earning projections if the resulting decision alters current projections in any significant way?

IDCC closed up $8.86 (4.45%). Some retribution for the longs today. Go IDCC.

License announcements will becoming starting with the Samsung arbitration decision.

CFO has finished his 31530 shares 10b5-1 plan selling (for this year) today..eom

Orient,

I am sure licenses are being worked on! Perhaps rumors of such are what asre driving the stock up todasy?

Tomcat

IMO the share price would increase substantially if IDCC could execute and sign one or more of these vendors, tiktok, youtube, netflex and disney this year. AMHO,

Retribution shall belong to the longs. IDCC seems to be trading with the markets. Which at this time has no knowledge of what good things will soon be announced soon. 

I think IDCC is holding up very well in this fiasco of a market due to the man made societal pervasive fiasco.

Short interest rose a tad at 2/28 2,180,000 from 2,100,000