WILMINGTON, DE — InterDigital Inc. (Nasdaq: IDCC) has reached a patent licensing agreement with Amazon that covers the technology developer’s intellectual property portfolio across Amazon devices and services, including Prime Video, while ending pending litigation between the companies.
The agreement marks a significant step in InterDigital’s effort to expand licensing revenue beyond traditional wireless-device markets and further into cloud-based and video-streaming services.
Under the terms disclosed by the company, the parties agreed to resolve all ongoing litigation and submit remaining commercial issues to binding arbitration, which will determine the final terms of the license agreement.
Financial terms were not disclosed.
The settlement provides InterDigital with a licensing framework covering one of the world’s largest technology and streaming platforms while avoiding the cost and uncertainty of continued patent litigation.
Julia Mattis, InterDigital’s chief licensing officer, characterized the agreement as an important development in the company’s strategy to broaden its presence in the video-streaming sector.
“This agreement is an important milestone in InterDigital’s longer-term goal to expand into video streaming services licensing,” Mattis said.
InterDigital has historically generated revenue by licensing patents related to wireless communications technologies used in mobile devices and network infrastructure. In recent years, the company has increasingly pursued licensing opportunities tied to video processing, streaming technologies and artificial intelligence-related innovations.
The Amazon agreement reflects a broader trend across the technology sector as patent holders seek licensing arrangements with providers of digital services in addition to traditional hardware manufacturers.
InterDigital, founded in 1972, develops and licenses technologies related to wireless communications, video processing and artificial intelligence. The company licenses its intellectual property to manufacturers of consumer electronics, connected devices, vehicles and providers of cloud-based services.
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