IDCC

InterDigital manufactures nothing. It does research, patents the technologies that become standards — 5G, Wi-Fi, the HEVC and VVC video codecs — and then bills whoever builds phones, televisions, cars and streaming services. More than 38,000 patents and applications as of 31 December 2025.

What makes the model unusual: 93% of 2025 revenue came from fixed-fee licences that are independent of the licensee's unit sales. If Samsung ships fewer handsets, InterDigital collects the same. Operating margin was 55% in 2025 on $834M of revenue, with all of $23.7M of net property and equipment against $1.3B of cash. This is a company whose principal asset is a law library.

Eight new agreements signed in 2025 — vivo, Honor, HP — and the Samsung arbitration set the recurring royalty at roughly $131M a year, 67% above the prior licence. Issued patents run to 2045.

The danger is entirely legal. Chinese courts can set worldwide rates; Amazon and Tesla have already demanded judicial rate-setting. A ruling that establishes a low rate for one large licensee becomes the reference for every other. Five licences expired in 2025 without renewal. We hold this knowing the thesis will be decided by a judge, not by a market.