InterDigital Inc. (IDCC), the mobile technology licensing and research and development company run by CEO Bill Merritt, said it signed a multi-year, worldwide, non exclusive royalty bearing patent licensing agreement with Huawei Investment and Holding Co. Ltd.
Wilmington, Delaware based InterDigital said the licensing agreement also was signed by its patent holding subsidiaries. The company didn't disclose the terms of the agreement.
InterDigital said the agreement covers Huawei's and its affiliates' sales of their 3G and 4G terminal unit products and sets forth cash payments to InterDigital and a process for transfer of patents from Huawei to InterDigital.
In addition, the companies have agreed to a framework for discussions regarding joint research and development efforts. The companies have settled all proceedings related to the arbitration initiated in December 2013.
“We're pleased to conclude an agreement with Huawei that reflects the strength of InterDigital's research and contributions to global wireless standards and Huawei's success in the global wireless device market,” Merritt said in a statement.
Merritt added that InterDigital looks “forward to the opportunity to broaden our relationship through possible collaboration in advanced technologies areas.”
Officials of InterDigital declined to comment on the terms of the agreement, the amount of the royalty payment or the patents being sent to InterDigital from Huawei.
In April, InterDigital announced that Chinese telecommunications giant Huawei had finally agreed to begin making royalty payments under a licensing agreement, which had been in arbitration in Paris.
An arbitration panel had ruled in InterDigital’s favor on the royalty amount and a Paris court had upheld the award.
InterDigital has said it is hoping that Huawei’s decision to begin paying the royalty will help it with discussions with other Chinese telecommunications companies, as well as LG Electronics and other unlicensed companies.
Merritt has said the the company expects to double its profit within a reasonable period of time by using agreements such as the one with Huawei to convince other alleged infringers of its patented technology to reach similar settlements.
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