InterDigital Rises Most in 2 Years on Samsung Patent DealRomaine Bostick
InterDigital Inc., a mobile-phone design company, rose the most in almost two years after reaching a patent-licensing agreement with Samsung Electronics Co.
InterDigital jumped 21 percent to $45.15 at 4 p.m. in New York for its biggest gain since June 18, 2012. The shares had risen 27 percent this year through yesterday.
InterDigital has claimed that Samsung and other companies, including Huawei Technologies Co. and ZTE Corp., are using without permission its technology related to the latest mobile-phone standards. The multiyear agreement today resolves all lawsuits with Samsung, InterDigital said in a statement.
“This agreement with Samsung shows how our longstanding patent licensing framework and process can lead to effective, productive discussions and eventual resolution on fair and reasonable terms,” InterDigital Chief Executive Officer William J. Merritt said in the statement.
The dispute with Samsung was part of a broader debate in the technology sector over how to treat patents that relate to fundamental inventions used across platforms. InterDigital, based in Wilmington, Delaware, helped create industrywide standards for mobile-phone technology, so was obligated to license relevant patents on fair and non-discriminatory terms.
InterDigital, which as of last year owned more than 1,700 U.S. patents related to wireless technology, has said phone companies have been using its inventions that activate idle phones, control power and transmit and display data.