Here are 1-3 brief analogies to describe InterDigital (IDCC):

• Like Dolby Labs, but for fundamental wireless and video communication standards.

• The ARM Holdings for wireless communication and video coding patents.

• Patent Licensing: InterDigital licenses its extensive portfolio of essential wireless and video technology patents to device manufacturers and network providers globally.
• Wireless Technology Research & Development: The company develops foundational technologies for cellular (5G, 6G), Wi-Fi, and IoT communications, which contribute to global standards.
• Video Technology Research & Development: InterDigital innovates in advanced video coding, compression, and streaming technologies used in various multimedia applications.

InterDigital (symbol: IDCC) primarily sells its intellectual property and technologies to other companies, operating on a Business-to-Business (B2B) model. Its major customers are technology companies, particularly manufacturers of cellular-enabled products such as smartphones, tablets, and IoT devices, that license InterDigital's extensive patent portfolio.

Based on public announcements and its business model, some of InterDigital's major customer companies (licensees) include:

• Samsung Electronics Co., Ltd. (KRX: 005930) - A global leader in consumer electronics, including smartphones, televisions, and home appliances.
• LG Electronics Inc. (KRX: 066570) - A South Korean multinational electronics company that manufactures a wide range of products, including home appliances and mobile devices.
• Xiaomi Corporation (HKEX: 1810) - A prominent global smartphone and smart home device manufacturer, with whom InterDigital announced a global patent license agreement in August 2023.
• OPPO (private company) - A leading global smartphone brand, known for its mobile technology and devices, with whom InterDigital announced a global patent license agreement in November 2022.
• Sony Group Corporation (NYSE: SONY, TYO: 6758) - A global technology and entertainment conglomerate, covering areas from consumer electronics to professional solutions, with whom InterDigital announced a multi-year patent license agreement in April 2024.

Liren Chen, President and Chief Executive Officer

Liren Chen was appointed President and Chief Executive Officer of InterDigital in April 2021. Prior to joining InterDigital, Mr. Chen spent nearly 25 years at Qualcomm Inc. where he most recently served as Senior Vice President and Global Head of IP, Legal Counsel. In this role, he was responsible for overseeing Qualcomm's worldwide intellectual property portfolio and leading technology, business strategy, product management, and global eco-system development for Qualcomm Technology Licensing. He holds 28 granted patents in the U.S. and over 120 granted patents worldwide.

Richard J. Brezski, EVP, Chief Financial Officer and Treasurer

Richard J. Brezski is InterDigital's Chief Financial Officer and Treasurer, a role he assumed in May 2012. He is responsible for overseeing the company's finance, accounting, audit, tax, treasury, and facilities functions. Mr. Brezski joined InterDigital in May 2003 as Director and Controller. Before his tenure at InterDigital, he worked as an audit manager for PwC in their technology, information, communications, and entertainment practice.

Joshua D. Schmidt, EVP, Chief Legal Officer and Corporate Secretary

Joshua D. Schmidt is InterDigital's Chief Legal Officer and Corporate Secretary, responsible for managing the company's legal functions. He joined InterDigital in March 2015 and has served in various roles within the legal department, focusing on M&A, corporate governance, and commercial contracting. Before joining InterDigital, Mr. Schmidt was an associate at Dechert LLP, where his practice focused on private and public company M&A, securities offerings, venture capital transactions, and joint ventures.

Rajesh Pankaj, EVP, Chief Technology Officer

Rajesh Pankaj joined InterDigital in July 2022 as EVP, Chief Technology Officer. Prior to InterDigital, he spent 25 years at Qualcomm, where he oversaw research in 5G, 4G LTE, augmented reality, and other technologies. His most recent role at Qualcomm was Senior Vice President of Engineering and Head of Corporate R&D, where he managed a global team focused on artificial intelligence, edge computing, and new technologies.

Michael G. Cortino, EVP, Chief Information Officer

Michael G. Cortino has served as InterDigital's EVP, Chief Information Officer since 2020. Before joining InterDigital, he was the Vice President of IT at Tenneco, Inc. Mr. Cortino also held leadership positions at Mars Inc, VWR International, Avantor, and Johnson Controls (formerly Tyco International).

The European Commission's proposed regulation on Standard Essential Patents (SEPs) represents a clear emerging threat. This legislative initiative, which is currently under consideration, aims to introduce a central database for SEPs, mandatory essentiality checks, and a mechanism for offering opinions on aggregate royalty rates before litigation. If enacted in its current form or with similar provisions, it could fundamentally alter the economics of SEP licensing within the European Union by potentially reducing royalty rates, increasing administrative burdens and costs for licensors like InterDigital, and shifting negotiating leverage towards implementers. This systemic change in the regulatory landscape could directly impact InterDigital's core business model of patent licensing.

InterDigital (symbol: IDCC) operates primarily in the research, development, and licensing of foundational technologies across wireless, video, and Internet of Things (IoT) domains. The addressable markets for their main products and services, primarily patent licensing for these technologies, are substantial globally.

Wireless Technologies (5G)

InterDigital is a pioneer in wireless communication technologies, including 5G solutions, and holds an extensive patent portfolio in this area. The global 5G technology market is projected to reach significant figures:

• The global 5G technology market size is estimated at USD 195.43 billion in 2025 and is expected to reach USD 457.95 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 18.57% during this period.
• Another estimate places the global 5G technology market size at USD 42.45 billion in 2025, expanding to USD 2,187.85 billion in 2035, with an incredibly high CAGR of 48.33%.
• The 5G infrastructure market, a component of the broader 5G market, was estimated at USD 16.72 billion in 2024 and is anticipated to reach approximately USD 131.77 billion by 2034, with a CAGR of 22.93% from 2025 to 2034.

Regionally, North America is expected to dominate the 5G market, holding approximately 40% of the global share, driven by strong demand and investments. Asia-Pacific is also a major and fast-growing market, propelled by urbanization and technological adoption.

Video Technologies (Video Coding/Compression)

InterDigital is a leader in video compression and delivery technologies, including advanced video codec technologies. These technologies are crucial for high-quality video streaming and efficient content delivery.

• The global advanced video coding market is expected to reach an estimated USD 4.8 billion by 2030, with a CAGR of 4.3% from 2024 to 2030.
• Within the media and entertainment sector, the market for advanced video codecs is predicted to reach USD 2.4 billion by 2030, driven by royalties from patent pools.
• The global next-generation video codec market is expected to reach an estimated USD 12.1 billion by 2031, growing at a CAGR of 28.9% from 2025 to 2031.
• The AI Audio and Video System-on-Chip (SoC) market, which includes AI-powered video compression technologies that InterDigital works on, was valued at USD 17.05 billion in 2024 and is projected to grow from USD 25.49 billion in 2025 to USD 952.07 billion by 2034, at a staggering CAGR of 49.5%.

North America is expected to witness the highest growth in the advanced video coding market due to the rising popularity of video streaming services and the presence of key players.

Internet of Things (IoT) Connectivity

InterDigital develops solutions for connecting devices in the IoT ecosystem and has been expanding its presence in this space. The IoT market encompasses a vast array of connected devices and systems.

• The global Internet of Things (IoT) market size is estimated at USD 1.35 trillion in 2025 and is expected to reach USD 2.72 trillion by 2030, with a CAGR of 15.04%.
• Another report values the global IoT market at USD 1,425.58 billion in 2024, with projections to reach USD 5,372.46 billion by 2034, demonstrating a CAGR of 14.1%.
• The IoT market is also expected to reach approximately USD 3,454.2 billion by 2033, growing from USD 492.7 billion in 2023 at a CAGR of 21.5%.

North America consistently holds the largest market share in the global IoT market, driven by a strong technology infrastructure, high internet penetration, and early adoption of IoT solutions. The Asia-Pacific region is projected to be the fastest-growing market for IoT.

• Expansion of Smartphone Licensing Agreements: InterDigital has significantly increased its market penetration in smartphone licensing, now covering approximately 85% of the global smartphone market with agreements including major players like Samsung, OPPO, Vivo, Lenovo, and Honor. The company's successful Samsung arbitration and new licensing deals have substantially boosted its Annualized Recurring Revenue (ARR) from the smartphone program, nearing its midterm goal of $500 million in recurring smartphone revenue by 2027.
• Growth in Annualized Recurring Revenue (ARR): A strategic shift towards a more predictable, fixed-fee licensing model has resulted in robust growth in Annualized Recurring Revenue. The company reported a 49% year-over-year increase in ARR, reaching an all-time high of $588 million in Q3 2025, providing a stable and growing foundation for future revenues.
• Penetration into New Markets: Beyond smartphones, InterDigital is actively expanding its licensing efforts into other high-growth verticals, including Consumer Electronics (CE), Internet of Things (IoT), and the Automotive sector. The company aims to more than double its ARR from CE and IoT by 2030, indicating a clear focus on diversifying its revenue streams.
• Leadership in Next-Generation Wireless Technology (6G) and AI Integration: InterDigital is making significant investments in research and development for next-generation wireless technologies, particularly 6G, and is emphasizing the integration of artificial intelligence (AI) into its wireless and video technology. This proactive R&D ensures the company remains at the forefront of innovation, positioning it for future licensing opportunities as new standards and technologies emerge.

Share Repurchases

• InterDigital returned $53.3 million to shareholders in Q3 2025, with $35.3 million allocated to share repurchases. In October 2025, an additional $15 million in stock was bought back, bringing the year-to-date total capital returned to more than $130 million.
• In Q2 2025, share buybacks amounted to $26.2 million.
• Over the last three-plus years, the company has repurchased more than half a billion dollars in stock and anticipates continuing share buybacks through the remainder of the year.

Share Issuance

• InterDigital's 3.50% Senior Convertible Notes due 2027 are convertible during the calendar quarter ending December 31, 2025, at a current conversion rate of 12.9041 shares per $1,000 principal amount of the Notes.
• The company entered into call spread transactions at the time of issuing the 2027 Notes, designed to economically reduce the net number of shares issued upon conversion by increasing the effective conversion price from $77.49 to $106.06.
• The number of outstanding shares was 25,917,000 as of November 2025.

Outbound Investments

• InterDigital acquired the AI startup Deep Render on October 30, 2025.

Capital Expenditures

• InterDigital operates with minimal capital intensity, with capital expenditures under $5 million for the first quarter of 2025, allowing most of its cash flow to support shareholder returns or research and development.
• The company's capital allocation priorities include investing organically in research and IP portfolio development.