InterDigital awarded $1.05 billion in patent royalties from Samsung arbitration

Published 29/07/2025, 21:46
InterDigital awarded $1.05 billion in patent royalties from Samsung arbitration

A panel of International Chamber of Commerce arbitrators has set total royalties of $1.05 billion for an eight-year patent license agreement between InterDigital , Inc. (NASDAQ:IDCC) and Samsung Electronics Co (F:SAMEq)., Ltd., according to a statement released in a Securities and Exchange Commission filing. InterDigital, currently valued at $5.75 billion and maintaining impressive gross profit margins of 88%, has shown strong financial performance according to InvestingPro data.

The arbitration decision, made Monday, covers Samsung’s products other than digital televisions and computer display monitors, which are licensed under a separate agreement. The patent license period runs from January 1, 2023, through December 31, 2030.

Under the terms set by the arbitration panel, InterDigital will recognize approximately $131 million in recurring revenue per year from the agreement. This represents a 67% increase compared to the prior license agreement between the companies.

For the second quarter of 2025, InterDigital expects to record $119 million in catch-up sales related to the agreement, in addition to $33 million in recurring revenue.

The information is based on a statement provided in a recent SEC filing.

In other recent news, InterDigital Inc. reported impressive financial results for the first quarter of 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $4.21, significantly exceeding the anticipated $1.83, while revenue reached $210.5 million, outperforming the forecasted $182.75 million. Additionally, InterDigital concluded its arbitration with Samsung Electronics (KS:005930), leading to a new patent license agreement. The arbitration process, which began in January 2023, was initiated after Samsung’s previous license expired at the end of 2022. In a separate development, InterDigital held its 2025 Annual Meeting of Shareholders, where key resolutions were passed, including the approval of executive compensation and the election of directors. The election saw the appointment of eight individuals to the board, with each director receiving a substantial majority of the votes. These recent developments highlight significant milestones for InterDigital in both financial performance and corporate governance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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