InterDigital Settles Patent Lawsuits Against Samsung
Published on: 3rd Jun 2014
Patent holding company, InterDigital says that it has settled a range of patent lawsuits against Samsung, after the South Korean firm signed a license agreement with it.
The royalty-bearing license agreement sets forth terms covering the sale by Samsung of 3G, 4G and certain future generation wireless products.
Financial terms were not disclosed, although InterDigital also issued a separate announcement where it raised its revenue forecasts. It lifted its total second quarter 2014 revenue sharply from just US$65-72 million to be between US$172-210 million.
"We expect second quarter recurring revenues to be in the range of $72 million to $80 million, and past sales of $100 million to $130 million," noted Richard J. Brezski, Chief Financial Officer, InterDigital.
Based on the numbers, it is being estimated that the Samsung deal could be worth as much as USD500 million to Interdigital over a five year term.
InterDigital added that the updated expectations are based on preliminary accounting results and do not include any contribution from the arbitration award the company received in May related to its agreement with Arima. The company said that it will recognize any revenue related to the Arima arbitration award when all criteria for revenue recognition have been met.