InterDigital Launches New Phase of Transparency Effort

Company Makes Handset Rate Structure, Portfolio Data, Licensing Principles Readily Accessible

InterDigital, Inc., a mobile and video technology research and development company, launched a transparency initiative that makes more readily accessible expanded information about the company’s standards essential patent (SEP) licensing rate program, including information regarding its rate structure, licensing and arbitration principles as well as important data about its large SEP portfolio.

“We firmly believe that we have one of the fairest licensing programs in relation to our leading portfolio of standards essential patents,” said William J. Merritt, President and CEO.  “We also believe that our program has already been one of the most transparent and that our licensing practices represent a tremendous balance between valuing standards-based research and practically addressing concerns of implementers. We’re proud to bring all of our key licensing information together in one place that is broadly accessibly by the public. This information should cement the view that InterDigital has never been about staking out extreme positions: it’s about showing our balanced, factual approach to licensing.”

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Some of the highlights in the published information include:

  • InterDigital’s position papers on FRAND licensing and arbitration, both of which reflect a simple, common-sense approach that balances the rights and obligations of SEP holders with the rights and obligations of standards implementers.
  • The company’s approach to portfolio valuation, which is that rates should be based on the portfolio as a whole and not evaluated on an inefficient and never-ending patent-by-patent basis.
  • Broad information about the company’s portfolio related to 3G, 4G and 5G as well as key additional technologies Wi-Fi and HEVC, showing a total footprint of approximately 9,800 patents and applications related to key cellular standards on a 5G backwards-compatible device and strong positions in Wi-Fi and HEVC.
  • A simple rate sheet for 3G, 4G and 5G devices, including ASP caps and floors, that shows an illustrative base per unit royalty of $1.15 for a $500 3G/4G smartphone that includes Wi-Fi and HEVC video technologies, with additional discounts available on a non-discriminatory basis based on volumes, agreement duration, payment timing and structure, and other factors.
  • InterDigital’s guiding principles for arbitration, which are designed to reach fair results as efficiently as possible and minimize cost for both licensor and licensee.

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