InterDigital (NASDAQ:IDCC) signed a new patent license agreement with LG Electronics, expanding the reach of its video and wireless research into one of the world's largest consumer electronics portfolios.
The deal, announced Tuesday, licenses LG’s digital televisions and computer display monitors under a joint licensing program InterDigital operates alongside Sony.
The agreement encompasses foundational technologies, including the ATSC 3.0 broadcast standard, Wi-Fi connectivity, and various video codecs essential for high-definition streaming and display.
The agreement was reached through "amicable negotiation," according to Julia Mattis, InterDigital’s Chief Licensing Officer.
The settlement reinforces InterDigital's strategy of monetizing its heavy investment in video compression and broadcast innovation across a global device market that is increasingly "video-first."
For InterDigital, the LG pact provides a steady stream of recurring revenue and validates its position in the next-generation broadcast space.
ATSC 3.0, also known as "NextGen TV," allows for 4K resolution and interactive features over-the-air, a sector where InterDigital and Sony have consolidated a significant portion of standard-essential patents (SEPs).
The announcement comes as the Wilmington, Delaware-based company continues to leverage its research in artificial intelligence and 5G to secure renewals with major global manufacturers.
With LG being a dominant player in the premium TV and monitor segments, the license ensures InterDigital’s technologies remain at the core of the home entertainment ecosystem.