What Does This Patent Troll's Most Recent Win Mean for Tech Investors?

Today, analysts Austin Smith and Andew Tonner discuss InterDigital's big patent win. The company succeeded in blocking struggling tech-equipment provider Nokia's imports, after Nokia refused to pay royalties on services such as mobile internet browsing. Patent wins obviously don't translate into long-term growth, but they can provide a healthy jolt in the short term.

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Andrew Tonner, Austin Smith, and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend Nokia. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (6) | Recommend This Article (1)

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  • Report this Comment On August 05, 2012, at 12:03 AM, M4135 wrote:

    Patent troll? Really? IDCC invented this technology which Nokia blatantly stole and used in their products without agreeing to pay a dime to IDCC for it. Does that make IDCC a patent troll when it invented technology we all use on a daily basis, helping to advance the entire world?

    Is Apple a "patent troll" when it defends its IP in court against Samsung? Of course not, none of you tools would ever accuse apple of that, so why do less glorified names like IDCC get this treatment?

  • Report this Comment On August 05, 2012, at 9:58 PM, jeffacri wrote:

    I agree with the first comment. And furthermore what was the point of this video - no new information is added that isn't in a news story - no thoughtful analysis. It is like an everyday sports fan commenting about a game they saw just giving their opinions and reactions. It angers me when I see such things passed off as something of value when it comes to making an investment decision.

  • Report this Comment On August 06, 2012, at 8:50 AM, jonluxy wrote:

    In the case of this case (the IDCC win) there should be substantial gains for IDCC, and not just from back due and future license revenue from Nokia. It also means that several potential licensees who were waiting for the results of this case will be readier to sign up. I think a sizable cash infusion means immediate growth yes, and more license also means growth that sticks, but to assume that such an expected increase in cash flow and cash balance would not translate into growth is an overly negative view. My personal experience tells me loud and clear that the more cash you have, the more opportunities are open to you (opportunities to grow). So if this win doesn't translate into long term growth, we need a new management. However I think this management team will likely walk the talk as this was "a big step" toward their target of 800 million in revenues (3 to 5 year time frame).

  • Report this Comment On August 06, 2012, at 9:33 AM, venicestate wrote:

    Patent troll? I am a foolish Motley Fool subscriber and have owned IDCC for over a decade. These two young "experts" have obviously not done very much research before jumping to their "troll" conclusion. Do they realize how many engineers and PhD's have worked researching the technology that makes their daily electronic consummations possible? IDCC has been developing these technologies before they were born! If putting these two "Subcriber Trolls" online is the best Motley Fool then all we subscribers must reconsider.

  • Report this Comment On August 06, 2012, at 11:47 AM, zack777 wrote:

    Bozo the clown could have written a more thoughtful commentary.

    "Patent wins obviously don't translate into long-term growth" - tell that to IBM, which year after year is granted more patents than any other company.

    And the author, who obviously saw the term "patent troll" while trolling internet investment boards, apparently didn't quite pick up the meaning. A patent troll is an aggregator of patents, an entity that goes out and buys intellectual property that others have invented, and once they own it, take to suing all the companies they think are infringing it. Interdigital invented technology that is so groundbreaking that some of its tens of thousands of Interdigital-invented IP is deemed essential to practicing various wireless standards. That means that if you don't use Interdigital's tech, your device won't be compliant with the wireless standards and its a coin toss whether they will work on a network or not.

    You either have a patent system where those that invent superior tech are rewarded for the time, money and effort they spent to develop the tech, or you have a landscape where innovation stops, because as soon as you invent groundbreaking tech, a company would be able to just come forward and take it, using it royalty free.

  • Report this Comment On August 07, 2012, at 11:09 AM, jonluxy wrote:

    insulting to call IDCC a patent troll - and a little misleading

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