InterDigital Secures Another Injunction Against Disney in Germany
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy IDCC?
Source: Newsfilter
- Patent Infringement Injunction: The Munich Regional Court ruled in favor of InterDigital, granting an injunction against Disney for infringing on InterDigital's HEVC compression technology patent, showcasing the company's strong stance on intellectual property protection.
- Ongoing Legal Victories: This marks the fifth injunction InterDigital has secured against Disney, with prior injunctions issued in Germany and Brazil related to HDR technology and other compression technologies, further solidifying its legal advantages in the global market.
- Industry Influence: InterDigital's Chief Legal Officer, Josh Schmidt, emphasized that the company's innovative technologies have significantly supported Disney's streaming business, highlighting the value relationship in their technological collaboration.
- Strategic Market Implications: With the injunction in place, InterDigital is urging Disney to sign an agreement that appropriately values its innovations, which may prompt Disney to place greater emphasis on compliance with intellectual property rights in future technological collaborations.
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Analyst Views on IDCC
Wall Street analysts forecast IDCC stock price to rise
4 Analyst Rating
3 Buy
0 Hold
1 Sell
Moderate Buy
Current: 363.900
Low
260.00
Averages
386.67
High
475.00
Current: 363.900
Low
260.00
Averages
386.67
High
475.00
About IDCC
InterDigital, Inc. is a global research and development company focused primarily on wireless, video, artificial intelligence (AI), and related technologies. It designs and develops foundational technologies that enable connected, immersive experiences in a range of communications and entertainment products and services. The Company licenses its innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, Internet of Things (IoT) devices, cars and other motor vehicles and providers of cloud-based services such as video streaming. It focuses on wireless technology, which is used in wireless products and networks, from the earliest digital cellular systems to fifth generation (5G) and advanced Wi-Fi technologies. The Company also focuses on video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Patent Infringement Injunction: The Munich Regional Court ruled in favor of InterDigital, granting an injunction against Disney for infringing on InterDigital's HEVC compression technology patent, showcasing the company's strong stance on intellectual property protection.
- Ongoing Legal Victories: This marks the fifth injunction InterDigital has secured against Disney, with prior injunctions issued in Germany and Brazil related to HDR technology and other compression technologies, further solidifying its legal advantages in the global market.
- Industry Influence: InterDigital's Chief Legal Officer, Josh Schmidt, emphasized that the company's innovative technologies have significantly supported Disney's streaming business, highlighting the value relationship in their technological collaboration.
- Strategic Market Implications: With the injunction in place, InterDigital is urging Disney to sign an agreement that appropriately values its innovations, which may prompt Disney to place greater emphasis on compliance with intellectual property rights in future technological collaborations.
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- Leadership Confirmation: Atle Monrad's re-election as Chair of the 3GPP SA6 working group underscores his deep technical expertise and leadership in advancing 5G and 6G service architecture standardization, which is expected to enhance industry recognition of next-generation network value.
- Service Architecture Development: During Monrad's second term, SA6 will focus on defining service frameworks and requirements to support the development of 6G systems, ensuring that network capabilities can be effectively leveraged by vertical industries and public safety organizations.
- Industry Influence: Monrad has significantly contributed to 3GPP since 2001, holding multiple senior leadership roles and driving the development of standards across GSM, UMTS, LTE, and 5G, further solidifying InterDigital's leadership position in wireless technology.
- Innovation Drive: InterDigital focuses on R&D in wireless, video, and AI technologies, aiming to design foundational technologies for connected and immersive experiences, and is expected to drive advancements in global communication and entertainment products through its innovation licensing.
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- IP Litigation Initiated: InterDigital has filed lawsuits against Hisense and TCL, alleging infringement of its intellectual property related to its joint TV licensing program with Sony, specifically concerning HEVC, VP9, and AV1 video compression technologies, demonstrating the company's commitment to protecting its innovations.
- Global Legal Action: The lawsuits have been initiated in the Munich Local Division of the Unified Patent Court, the Rio de Janeiro State Court, and the Delhi High Court, indicating InterDigital's proactive stance in enforcing its IP rights on a global scale to prevent Hisense and TCL from exploiting its technologies without compensation.
- Industry Impact: As top-five global TV manufacturers, Hisense and TCL's reliance on InterDigital's research means that a successful lawsuit could significantly disrupt their business models, potentially encouraging other competitors to adhere to licensing agreements as well.
- Legal Officer's Statement: InterDigital's Chief Legal Officer, Josh Schmidt, emphasized that Hisense and TCL must not be allowed to continue infringing on its IP, particularly as many of their competitors have already taken licenses, highlighting the company's leadership position and commitment to innovation in the industry.
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- Haptic Technology Innovation: The establishment of the Haptic Excellence Center by InterDigital and Razer aims to foster innovation and education in haptic technology, with projections indicating that 53% of consumer devices will be haptic-enabled by 2028, thereby enhancing user media experiences.
- Significant Market Potential: As of the end of 2024, there were approximately 4.1 billion haptic-enabled consumer devices globally, indicating a growing prevalence of haptic technology in digital devices, which is set to become a crucial component of immersive experiences.
- Education and Collaboration: The center will collaborate with universities to advance experimentation and education in haptic content, addressing the technological barriers that currently limit the large-scale deployment of immersive haptic experiences, while promoting industry standardization and innovation.
- Strategic Partnership Significance: Through collaboration with Razer, InterDigital is not only establishing an open framework in the haptic technology space but also advancing applied research for large-scale deployment, aiming to redefine how users engage with digital content and enhance overall user experiences.
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- Revenue Beat: InterDigital reported total revenue of $158 million for Q4 2025, exceeding the outlook range of $144 million to $148 million, primarily driven by a new CE device licensing agreement with a significant social media company, showcasing strong market performance.
- Patent Portfolio Expansion: The company achieved a 14% year-over-year growth in its patent portfolio, surpassing 38,000 granted patents and applications, further solidifying its leadership in AI and 6G standards, which is expected to drive future revenue growth and market competitiveness.
- Strengthened Strategic Partnerships: The licensing agreement with Samsung has been extended to 2030, alongside new deals with Vivo, Honor, and LG Electronics, resulting in InterDigital now licensing 8 of the top 10 smartphone manufacturers, covering approximately 85% of the market share, enhancing its market position.
- Optimistic Outlook: Management guided for total revenue in 2026 to be between $675 million and $775 million, with adjusted EBITDA ranging from $381 million to $477 million, indicating growth potential driven by ongoing contract renewals and new agreements, with a target of reaching $1 billion in annual recurring revenue by 2030.
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- Earnings Beat: InterDigital reported a Q4 non-GAAP EPS of $2.12, surpassing expectations by $0.34, indicating strong profitability despite a 37.4% year-over-year revenue decline to $158.2 million, which still exceeded forecasts by $7.6 million, showcasing resilience in the market.
- Outlook Guidance: The company projects Q1 2026 revenue between $194 million and $200 million, exceeding the consensus of $167.28 million, reflecting confidence in future revenue growth, although this outlook excludes results from new agreements or enforcement actions.
- Long-Term Growth Potential: For the full year 2026, revenue is expected to range from $675 million to $775 million, above the consensus of $693 million, indicating that the company anticipates stable growth through contributions from existing licenses and new agreements, further solidifying its market position.
- Profitability Improvement: The projected non-GAAP EPS for Q1 2026 is between $2.39 and $2.68, exceeding the consensus of $2.33, demonstrating ongoing improvements in profitability and enhancing investor confidence in the company's future performance.
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