Trust will monetize InterDigital patents related to cellular infrastructure; Trust may expand licensing programs over time; trust structure may serve as model for additional InterDigital patent license program enhancements
WILMINGTON, Del., Oct. 17, 2013 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq:IDCC), a wireless research and development company, today announced the establishment of the Signal Trust for Wireless Innovation, which will monetize a large InterDigital patent portfolio related to cellular infrastructure.
The more than 500 patents and patent applications being transferred to the Trust focus primarily on 3G and LTE technologies, and were developed by InterDigital's engineers and researchers over more than a decade, with a number of the innovations contributed to the worldwide standards process. As a result, the patent portfolio includes patents for pioneering inventions that the Company believes are used pervasively in the cellular wireless industry. InterDigital will retain licensing and other monetization rights to the transferred patents for a limited period of time enabling companies to conclude agreements with InterDigital during a transition period.
InterDigital has committed funding to the Signal Trust to help ensure its successful launch. The Company will also be the primary beneficiary of the Trust. The distributions from the Trust will support continued research related to cellular wireless technologies. A small portion of the proceeds from the Trust will be used to fund scholarly analysis of intellectual property rights and the technological, commercial, and creative innovations they facilitate, through the newly-formed Signal Foundation for Wireless Innovation.
The Company has selected two industry veterans to lead the Trust:
- Roger E. Stricker, PhD will serve as Trust Advisor. Dr. Stricker's background includes more than 25 years of patent management and licensing experience at IPLM Associates as well as Lucent Technologies, building on a 15-year career in technology development at AT&T and RCA. He holds a PhD in Electrical Engineering from Purdue University.
- Bruce G. Bernstein, Esq. will drive the daily portfolio monetization efforts for the Trust. Mr. Bernstein contributes more than two decades of patent management and monetization experience, and from 2005 to 2008 was InterDigital's Chief IP and Licensing Officer. During his tenure, the company closed licensing deals having a cumulative value in excess of $700M.
"The creation of the Signal Trust is a further step in our successful strategy to expand the means by which we monetize our large and growing intellectual property portfolio developed over many years of market-leading research," commented William J. Merritt, President and Chief Executive Officer of InterDigital. "Using this portfolio of strong inventions, we expect the Signal Trust to derive significant value from licensing the large cellular infrastructure equipment market, a market that alone saw over $30 billion in sales in 2012. We also see the trust structure as a potential model for unlocking the value of various other patent portfolios for the Company," continued Mr. Merritt.
InterDigital develops fundamental wireless technologies that are at the core of mobile devices, networks, and services worldwide. We solve many of the industry's most critical and complex technical challenges, inventing solutions for more efficient broadband networks and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world's leading wireless companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400® index.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding our current beliefs, plans and expectations with respect to the Signal Trust, including, without limitation, (i) our expectation that the Trust will monetize the patent portfolio related to cellular infrastructure and (ii) our expectation that the Signal Trust will derive significant value from licensing the large cellular infrastructure market. Words such as "will," "expects," "projects," and variations of such words or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors, including, but not limited to: (i) the ability of the Signal Trust to enter into patent license agreements and the timing and terms of any such agreements and (ii) the exercise by the Company of any of its retained rights with respect to the patent assets transferred to the Signal Trust.
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