InterDigital, Inc. (NASDAQ: IDCC)

InterDigital, Inc., often recognized by its ticker symbol IDCC, operates within the technology industry, specifically focusing on wireless, video, artificial intelligence (AI), and related technologies. The company is a renowned research and development entity, known for designing and developing fundamental technologies that enable immersive experiences in various communication and entertainment products and services.

InterDigital's primary business activities revolve around the development of cutting-edge technologies, particularly in the realms of wireless technology, video processing, and AI research. These technologies find their application in a broad spectrum of devices and services, ranging from wireless communications devices, consumer electronics, and Internet of Things (IoT) devices, to cars and other motor vehicles, and providers of cloud-based services such as video streaming. The company's operations span across multiple regions, making it a global player in its industry.

The company's revenue generation is primarily driven by licensing its patented innovations worldwide. InterDigital has a robust portfolio of over 30,000 patents and patent applications, covering cellular wireless standards, including 3G, 4G, and 5G technologies, as well as other wireless standards like Wi-Fi technology. The company's patent portfolio also extends to a variety of video technologies and standards, such as HEVC and VVC. These patents are licensed to companies providing a wide range of products and services, from wireless communications devices to video streaming providers.

InterDigital holds a competitive advantage in its industry due to its significant patent portfolio, expertise in wireless and video technologies, and its global reach in licensing its innovations. The company's customer base includes leading mobile communications and consumer electronics companies such as Amazon, Apple, Lenovo, Google, LG, Samsung, Sony, and Xiaomi, among others.

InterDigital's research and development operation, InterDigital Research & Innovation, has a strong track record of developing pioneering solutions for cellular and Wi-Fi technologies. The company's research efforts are focused on various areas related to future technology and devices, including cellular wireless technology, advanced video coding and transmission, and AI.

In terms of its revenue sources, InterDigital derives income from device-based licensing, service-based licensing opportunities, and licensing through platforms. The company has successfully entered into patent license agreements with many leading mobile communications and consumer electronics companies globally.

InterDigital's patent license agreements typically provide for the payment of royalties based on sales of licensed products, as opposed to the payment of royalties if the manufacture, sale, or use of the licensed product infringes one of its patents. This model ensures a stable revenue stream for the company, as it receives compensation regardless of any potential patent infringement lawsuits.