Judge Gives InterDigital Some Teeth

There's nothing like having a court decree on your side to go after someone who owes you money. In Motley Fool Stock Advisor recommendation InterDigital's (Nasdaq: IDCC  ) case, a federal district court judge confirmed a $134 million arbitration award that the wireless innovator won against Samsung for royalties on past sales of wireless devices.

News of the court backing fueled an 18% rise in InterDigital's stock yesterday, as investors now see Samsung forced to pay up. While Samsung can appeal the court's declaration, InterDigital noted that the device maker would have to post a bond to do so.

InterDigital has been wrangling with Samsung for years, attempting to get paid for royalties on millions of devices being sold to carriers such as Verizon Wireless ---a joint venture between Verizon Communications (NYSE: VZ  ) and Vodafone -- and Sprint Nextel (NYSE: S  ) through 2005. One major point of dispute has been the level of royalty due. Samsung wants to use an agreement between Nokia (NYSE: NOK  ) and InterDigital as a yardstick to come up with an amount less than $134 million. But InterDigital has stuck to its guns, and it looks like it will take home the larger prize.

However, if InterDigital does manage to collect on this ruling, it will only represent a portion of what it thinks Samsung owes. The arbitration in this case only accounted for use of intellectual property for second-generation (2G) devices. Samsung is busily churning out advanced 3G devices, which according to InterDigital also use its patents.

These devices are also being sold across more carriers, such as AT&T (NYSE: T  ) and Deutsche Telekom's T-Mobile. Seeing how effectively Broadcom (NYSE: BRCM  ) has won arguments against Qualcomm (Nasdaq: QCOM  ) in front of the U.S. International Trade Commission (ITC), InterDigital has filed a complaint there to force Samsung into a corner as well.

While the lawyers at InterDigital can raise their glasses of bubbly and breathe a little easier today, the check isn't in the bank yet. Final payment may be dragged out further, and there's still plenty of work ahead, with many more legal battles remaining.

For more Foolishness:

Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 548200, ~/Articles/ArticleHandler.aspx, 9/24/2016 7:08:46 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 hours ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
IDCC $78.20 Down -1.41 -1.77%
InterDigital Commu… CAPS Rating: *****
NOK $5.66 Down -0.08 -1.39%
Nokia CAPS Rating: **
QCOM $62.75 Down -0.77 -1.21%
Qualcomm CAPS Rating: ****
S $6.64 Up +0.02 +0.30%
Sprint CAPS Rating: **
T $41.28 Up +0.17 +0.41%
AT and T CAPS Rating: ****
VZ $52.56 Up +0.21 +0.40%
Verizon Communicat… CAPS Rating: ****