Company: IDCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001405495-25-000063
Chunk: 99

Company: InterDigital, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 99
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Table of Contents

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

OVERVIEW

The following discussion should be read in conjunction with the unaudited, condensed consolidated financial statements and notes thereto contained in Part I, Item 1 of this Quarterly Report on Form 10-Q, in addition to our 2024 Form 10-K, other reports filed with the SEC and the Statement Pursuant to the Private Securities Litigation Reform Act of 1995 — Forward-Looking Statements below. 

Throughout the following discussion and elsewhere in this Quarterly Report on Form 10-Q, we refer to “catch-up revenue.” For variable and dynamic fixed-fee license agreements, “catch-up revenue” primarily represents revenue associated with reporting periods prior to the execution of the license agreement.

New Agreements

During third quarter 2025, we signed four patent license agreements, including with Honor Device Co., Ltd. ("Honor"), a major Chinese smartphone vendor. We now have eight of the ten largest smartphone vendors and approximately 85% of the entire global smartphone market under license.

Disney Proceedings

In September 2025, we were awarded a preliminary injunction against Disney by a court in Brazil. The court ruled that we are entitled to a preliminary injunction over Disney’s infringement of two InterDigital patents related to AVC and HEVC video coding technology. The decision followed the publication of an independent expert report, commissioned by the Rio de Janeiro court, which fully supported our 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. The Appellate Court initially granted Disney’s request to stay the preliminary injunction pending hearing of an appeal, but that stay was lifted. Disney now has until November 30, 2025, to comply fully with the injunction.

For more information on the Disney proceedings, see Note 6, “Litigation and Legal Proceedings,” to the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Deep Render Acquisition

In October, we acquired Deep Render, an AI startup with a team of world-class AI experts focusing on video codecs. We believe the acquisition adds significant depth to our existing AI expertise and strengthens the company’s leadership in video compression. The transaction also adds Deep Render’s patent portfolio in AI-based video coding to our market-leading video portfolio. As part of the deal, a team of AI experts