InterDigital, Inc. (NASDAQ:IDCC) shares were up 0.11% on Tuesday to $72.04 but down 0.02% in after-hours trading. Share prices have been trading in a 52-week range of $41.01 to $73.20 so the stock is at the upper bound. The company has a market cap of $2.84 billion at 34.25 million shares outstanding.
InterDigital Inc is a company that designs and develops technologies for wireless communications. It has designed and developed a range of technologies that are used in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802 related products and networks.
The company’s subsidiaries hold a portfolio of approximately 20,400 patents and patent applications related to a range of technologies, including the fundamental technologies that enable wireless communications. Among the products integrating its technologies are mobile devices, such as cellular phones, tablets, notebook computers and wireless personal digital assistants; wireless infrastructure equipment, such as base stations, and components, dongles and modules for wireless devices.
In a recent press release, InterDigital Inc shared that it has signed a multi-year, worldwide, non-exclusive, royalty bearing patent license agreement with Huawei, which is one of the world’s largest holders of intellectual property rights in the information and communications technology industry.
“We’re pleased to conclude an agreement with Huawei that reflects the strength of InterDigital’s research and contributions to global wireless standards and Huawei’s success in the global wireless device market,” said InterDigital Inc CEO William Merritt. ” We look forward to the opportunity to broaden our relationship through possible collaboration in advanced technologies areas.”
Under the agreement, Huawei’s and its affiliates’ sales of their 3G and 4G terminal unit products will have cash payments to InterDigital Inc. The agreement also covers a process for transfer of patents from Huawei to InterDigital, along with a framework for discussions regarding joint research and development efforts. This deal guarantees sales for InterDigital as well as prospects for new product developments down the line, lending upside for its share prices.
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