After a year of litigation, Samsung SSNLF finally worked out a new licensing deal with InterDigital IDCC.
InterDigital filed a complaint with the U.S. International Trade Commission in January 2013, alleging that Samsung had engaged in "unfair trade practices by selling for importation into the United States, importing into the United States and/or selling after importation into the United States certain 3G and 4G wireless devices…that infringe up to seven of InterDigital's U.S. patents." The new agreement resolves all pending litigation between the two parties.
"We're very happy with the agreement with Samsung," William Merritt, President and Chief Executive Officer of InterDigital, told Benzinga. "Samsung has actually been a long-time licensee of ours. They've been a licensee since '96. We had gone through a period last year where they were not licensing. Now we were able to renew the license on very favorable terms. It's a 10-year deal."
Investors rallied on the news, creating the biggest bump in two years.
"It's always great to have the market leader acknowledge the fine work done by our lab and our engineers," Merritt continued. "We didn't disclose the financial terms of the deal, [but] we issued guidance…that updated our revenue projections for the quarter, incorporating all of the new information that we had. It shows that we're in a very, very strong position going forward on revenue."
Total revenue is expected to fall within the $172 million to $210 million range. Recurring revenue should be between $72 million and $80 million, while past sales should end up somewhere between $100 million and $130 million.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Posted In: Long IdeasNewsLegalManagementSuccess StoriesTechTrading IdeasInterviewAppleInterDigitalInternational Trade CommissionITCSamsungWilliam Merritt
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