InterDigital receives a preliminary injunction against Disney in Brazil for patent infringement related to video coding technology.
Quiver AI Summary
InterDigital, Inc. has secured a preliminary injunction against Disney from a Brazilian court for infringing on two of its patents related to AVC and HEVC video coding technology. The 7th Corporate Court of the Judicial District of Rio de Janeiro ruled in favor of InterDigital after an independent expert report confirmed the infringement and clarified that InterDigital does not hold a RAND obligation for the encoder claims involved. InterDigital's Chief Legal Officer, Josh Schmidt, emphasized the importance of this decision for ensuring fair value for their innovations used by Disney in its streaming services. InterDigital, a leader in mobile, video, and AI technologies, develops foundational technologies and licenses them to companies across various sectors, including wireless communications and video streaming.
Potential Positives
- InterDigital secured a preliminary injunction against Disney, affirming its patent rights regarding video coding technologies, which may strengthen its position in future negotiations and enforcement of its intellectual property.
- The court's decision was supported by an independent expert report, adding credibility to InterDigital's claims of patent infringement by Disney.
- This ruling emphasizes the importance of IP rights and sets a precedent for fair compensation for technologies that underlie significant industry player operations, potentially increasing InterDigital's licensing revenue.
- InterDigital's technology is essential to the streaming industry, demonstrating its value and relevance in high-visibility sectors, which may enhance its market reputation and attract new collaborations.
Potential Negatives
- The preliminary injunction against Disney may signal significant legal disputes ahead, potentially leading to prolonged litigation that could strain InterDigital's resources and impact its public perception.
- The ruling indicates that InterDigital is actively engaging in legal battles over patent rights, which may raise concerns among investors about the company's reliance on litigation rather than innovation for revenue growth.
- This decision could lead to potential backlash from partners and clients who may question InterDigital's approach to intellectual property management and standards, impacting future collaborations.
FAQ
What was the court's decision regarding InterDigital and Disney?
The court in Brazil awarded InterDigital a preliminary injunction against Disney for patent infringement related to video coding technology.
Which patents are involved in the InterDigital vs. Disney case?
The case involves InterDigital's patents on AVC and HEVC video coding technology.
What did the independent expert report conclude?
The independent expert report supported InterDigital's claims that Disney infringed its patents and found no RAND obligation for InterDigital.
Why is this decision important for InterDigital?
This decision is crucial for InterDigital as it aims to ensure fair value for Disney's ongoing use of its video technology innovations.
How does InterDigital contribute to the streaming industry?
InterDigital's technology enhances video compression, picture quality, and user experience, supporting the viability of the streaming industry.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$IDCC Insider Trading Activity
$IDCC insiders have traded $IDCC stock on the open market 41 times in the past 6 months. Of those trades, 0 have been purchases and 41 have been sales.
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- JEAN F RANKIN has made 0 purchases and 9 sales selling 3,285 shares for an estimated $734,622.
- JOSHUA D. SCHMIDT (CLO & Corp Secretary) has made 0 purchases and 5 sales selling 2,713 shares for an estimated $623,801.
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We have seen 270 institutional investors add shares of $IDCC stock to their portfolio, and 252 decrease their positions in their most recent quarter.
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Full Release
WILMINGTON, Del., Sept. 11, 2025 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video and AI technology research and development company, today announced it has been awarded a preliminary injunction against Disney by a court in Brazil.
The 7th Corporate Court of the Judicial District of the Capital of Rio de Janeiro ruled that InterDigital is entitled to a preliminary injunction over Disney’s infringement of two InterDigital patents related to AVC and HEVC video coding technology.
The decision follows the publication of an independent expert report, commissioned by the Rio court, which fully supported InterDigital's position that Disney infringed both of the patents-in-suit, and that InterDigital does not have a RAND obligation arising from the asserted encoder claims.
“From better video compression to higher picture quality and an enhanced user experience, our technology underpins the viability of the streaming industry and has enabled Disney to build a highly successful streaming business,” commented Josh Schmidt, Chief Legal Officer, InterDigital. “This decision is an important step in ensuring that we receive fair value from Disney’s ongoing use of our innovation and I welcome the court’s support of balanced IP rights and innovation more broadly.”
About InterDigital ®
InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our 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 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. 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:
[email protected]
+1 (202) 349-1716
