IDCC - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the InterDigital, Inc.

Second Quarter 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Patrick Van de Wille. Please go ahead sir.

Patrick Van de Wille

much. very Thanks and conference everyone InterDigital's quarter second Good welcome earnings call. XXXX morning to this Merritt, With CEO; are morning me Bill Brezski, CFO. and our our Rich and President the we'll Consistent quarter's up for then offer quarter call and some open with the the call, highlights last questions. and company, about

our are you future risks which that except from and These statements we XX-K and forward-looking uncertainties no current to regarding with in events to Before remind uncertainties events as beliefs, our performance are earnings such made as we statements our December in Annual call, plans them, I results subject year a only hereof, ended information, from Form law, result any Commission. remarks, otherwise. this begin of expectations, XXXX, not our of filings our guarantees to cause future other will whether or actual and to Report forth and Exchange obligation we the of as forward-looking and could on new by those risks of revise by required XX, and and differ results need during for and or statements. update events set time-to-time the are include make Securities date release materially hese forward-looking contemplated and the undertake and

on be side these Reconciliations for second accessed GAAP homepage can addition, says left www.interdigital.com, financial references financial In measure. our metrics included non-GAAP to of the are clicking in Financial on homepage financial our the quarter tracker, non-GAAP contain the today's XXXX. presentation Tracker link QX by directly measures may the measures on financial that of XXXX Metrics most which comparable to

all locations patient of, to I’ll with over during there exercise events. I'll turn while Finally, related different the with call pull of this ask a taken experiencing are And everyone weather be back Bill. is just the participants issue care the in some call, If which significant option. call are weather to the on COVID-XX technical we that

Bill Merritt

Patrick, operations that going I the Thanks, remarks on joining be crazy fairly today and touching With well morning, morning. the world through period to and for closing to remarks our you time thank continuing all I and and a my us appreciate the of the of continuous you to business and then call company’s or some and good am some on hope the on status finding relax I are something. light in mind, pandemic. this quick and with keep in going licensing update of litigations the on brief everyone,

period the As how by resilient part revenues recent global was revenue. we of half new business increase for the renewed quarters our in the during one in to with once more growing business agreements difficult also contributed by all arguably revenue while Huawei, dozen three which model – memory, that is XX% again agreement our we’ve of driven signed proven is over last

that will quarter the and now. Licensing of We momentum also also is contribute a that about amount have this CE certainly agreement quarter new signed third small good early a revenue. we

both we with also move licensees side. continue to potential other and can success that addition to on CE In licensing [indiscernible] mobile the

operating. larger the can for articulated All revenue goals, well deliver licensing It we and us the more are now licensee programs. on of that that to speaks is confident diverse gives how different business we

we of license brand do And is the negotiate to of for despite in the Xiaomi we with to made customer been of quickly fair dollars type new technology The in [indiscernible] force. the filed Of initiatives to them that seen research simply access. behavior did. last Xiaomi asked by has patent have InterDigital case take. dollars made success essentially This has week. and course, years allowing do failed to effort failed occasionally manufacturers never which price wireless profited the . a refuses of is Xiaomi production entry that have Xiaomi all incredible which lawsuit have competition the them have seriosuly. to And technology. There barriers the process is product furthermore entrants but to and available exactly a developed provided that standard are infringement for enhance process benefiting to them happened to decision a market in like they we alike upfront scale bring become to an never thing billions And they of handset market standards. we’ve and cellular this and eliminates so. that wide investment cellular of Xiaomi and no take that pay against And only India, what provided consumers Xiaomi billions market up Hence enormously. cellular

based actually in created India, on we cellular two actions by inventions is Although, filed InterDigital. the first patent

which the we the for inventions. are on our of a is due video we lawsuit coding R&I the the the for Among use other against significant second seeks transactions. sales things, demonstrates market the developed team, part handsets in based of lawsuit reach our of believe The value Xiaomi innovations is injunctions them. India, the that technologies company’s as acquired broader we suit which by technical The of and

a course, agreement to enter to Xiaomi non license be terms. reasonable we into Of willing on and continue discriminatory with fair,

same. as filed, exhausted. a the do us. The our options Lenovo arbitrate a that for us said, And the litigation tends can the company signed something with will which licensees. and last to prospective the are appropriate technology also recent be of Xiaomi – effective willing every ever all we is used without we we're pursue be when not to to we That against And compensation. litigation only litigation. and we had filing option terms do as before, other litigated is which license Huawei how have agreements license, What willing ZTE ultimately Xiaomi said will be to our the offer We with

me let the company quickly overall the period. operations Next in on touch of this

at The continue work from evident remains is the practices the that financial our depending but the for will of a mode until future. for As at company in well. reopen doing all offices status so and we remote the safety results employees of remote remain the point operate maintain consistent option so, the with all best the we'll least fall, upon will pandemic to we work for foreseeable

from also and Our weaving home. new populations. been working very highly the into employees at have have effective we employee been talent recruiting And productive them

rush environment, for so office. preferred different set way interests. the that to office we're don't the employees balance to our we see have best That a looking need the back to So said, of these we

half first to turn the I looking year CFO the that discussion the With thought that, as said, over we're success We've the for the second in or I call So to let keep had a it repeat short. year. Rich part with me I'd of great results. of our financial

Rich Brezski

Bill. growth line agreements, license us top both We the our ranges Thanks QX, at top patent agreement end recent with new revenue. was for including our in strong delivered Huawei. driven total of in This recurring by bringing growth and

bearing for website well royalties estimate The contributions as this non-recurring on customers’ QX our contributions about in represents in agreements both best the these were per noted published our the to products. including in as financial from new by total of our offset to QX. As revenue. from our XX% current of royalty estimates the sequential QX XX% up our a decline morning, sales revenue approximately recurring XX-Q, climate impact Huawei made of unit metrics health and QX our in for economic This of partly on and

always received all related is the will the when royalty quarter As the next reports. true case up estimates we

series in by expected could up increased XXXX. in the increase our increase again to compensation newly $X patent million which litigation was anticipate reductions were filed and range offset reflected $X infringement million revenue million agreements expense recently QX. in expenses litigation currently from our We litigation of CE by and and sharing increase both based portfolio. QX $X signed in by driven our Lenovo a Increasing and Our our additional patent operating with accruals expense an operating other QX, driven step case charge expense Xiaomi India. $X in QX activities within million one-time expenses $X cost license on This million to increase

Recently, Let take $XX a I'll agreements typically received our flow is cash a $XX me a detail. follow quarter-to-quarter Over increase XX% QX, to our of free prescribed QX, in in schedules. such $XX fixed payment the many million you about revenue flow we -- revenue to that I've of outflow of from period. number cash reported million recognize moment unusual. questions it some this our variation given discuss relates cash of We reported over Such not that agreements. flow in the comes price you how is us cash in have our million and

when Some or from QX timing by payment the customers an collect spread agreements to agreement these flow between might why example agreement. liability terms these Ultimately, of a revenue partial degree. payments of these is payments cash of uneven increased Others that the due for to million be include as front-loaded in deferred was liability. million extent we over the agreements. The collectively long-term are collection related This $XX deferred over we the we payments. approximately recognize $XX the signed also represents from revenue from revenue recognize recognized of payments increase also revenue recognize royalties the payment be schedules part difference call an covered $XXX payment three reason balance quarterly remaining is big in revenue evenly revenue schedule may as a agreement. we see driven well over and reduced That and recurring as over deferred revenue under in XQ. for a front-loaded sequential we the then the we in when It to annual the QX. last the from for quarters. These result million cash QX non-recurring the a of term To

the to-date [$XXX] of revenue signed amount to related you at future agreements. have In fact, million look can periods total we total cash collected balance the under deferred of as

percentage, total three this a non-financial patent comment on license final Overall, our topic, is small revenue just due to the very a X% As the consideration under of us component years. of sometimes accept as last consideration over we this averaging agreements. a

All of in must such quarter cash generated used is the our in any while taken measure to context. an this flow business and illustrates be while free revenue or important given recurring

to Finally, and moving coming our year-to-date. about our to profitability [XX%] agreements revenue rate still XXXX. of drive on now sufficient on in expanding about to With taxes, and normalize long-term somewhat platform, I’ll quarter effective about to helped And our back prescribed our until a XX% tax success Patrick. XX% we the changes we based XX% for in [outlook]. it recent rate increase expect level turn roughly over it expect the to tax be to continued

Patrick Van de Wille

we you, will for Thank you, open Thank now the Bill questions. Rich. and call

Operator

Thank opportunity you. for moment We'll a to Instructions]. pause just for to questions. allow signal everyone an [Operator

Zaffino, Our Ian first Oppenheimer. question comes from

Ian Zaffino

very you not as on what see I'm after are or far of the kind in pretty much. ones? you as us to and you give thank Are close -- to some that aggressively. are remaining Thanks. negotiations of expect now? enforcement are Can just the litigation Hi, you'd presently color glad guys paying the patent right maybe those you going ones other

Bill Merritt

get So I where Ian to question. -- your is this

we company, we call so. company thank initiating a And you first me that. analyst the on appreciate for an Let just and the obviously you welcome as for to coverage

Ian Zaffino

Thank you.

Bill Merritt

options. in just enforcement move we that wondering, we Xiaomi. ahead I'm guess patent did to And say as point that a there Yes, I customers with of we we've it, breaking all in exhausted sometimes with terms litigation is

litigation with reasons obviously why The strategic times related lot could other seek no into -- engagements is particular reasonable have the be to there's they that’s whom bring of thoughts customers, at against well. between other litigation, customers, that company we as goes a we a dominancy vary there we but

account making that litigation, either additional in the with that current whom or we folks commence lot into litigation decision. litigations would factors of a in take we whether we're with against new So

of not also, cost can lightly. any to secure do some agreements get it's on good the thing. fact, if there's litigation. side that that In have a something make I And always that's you you a without we But resorting people can letter. hope to at point, that of we because cost, sure you avoid paying litigation, the

forward will on. see The how of with have all well schedules think move good litigations we'll current just larger any think it established we've part patents in these They're to licensee. are I got think So they're, plays they're I meaning they’re -- good out. also cases, I – discussion a

continue going we [indiscernible] to result with Xiaomi, an obviously reach it's all other litigation, them if seek about ways in amicable engage with would in to be just and not So that's desire. to

Ian Zaffino

for net cash Thanks, the just what And as a above Bill. guys of to even of -- beyond follow up, are you Thanks even need kind with business. and a sitting color. that you run lot after

as a past. of thinking buybacks Where typically Thanks. specifically lot far far heads buybacks? but what you as What are in returns bought So as you you've the back here on are are dividends, as stock your now? thinking and -- capital

Bill Merritt

and take to Yes, happy that. I'll be

especially on buybacks. to So, have yes strong we through through returning you're very a exactly right history dividends, that capital and shareholders

in lot including given almost we us a million of drive in shareholder, it's really But value more way potential a million to the think right market. year. the environment, that for current most than for like five over broader also cash companies now, so I the value for the the or invest And $XXX last uncertainty that exists our opportunities last the shareholders. in years utmost overall could $XXX

to current of together posture this time Every I But say it always topic kind our as that's a is. now. get Board. be So, we right the with continues

Ian Zaffino

Thank very great. you Okay, much.

Bill Merritt

Thank you.

Operator

from question Wold, Riley. comes Eric next Our B.

Eric Wold

of benefit too? market it's for guys. to the the versus go towards India, global licenses that mentioned Thank the U.K. the maybe to a morning, share you. in against just Indian market questions, U.S. The them couple know of can suit Xiaomi rationale of guess, sense licenses. one of stance A I Bill courts the global a big just the get to Good and about courts obviously talk trying towards going you like a I you a U.K. same filing

Bill Merritt

side And you as seriously. take purpose big them. think Yes, obviously be courts, litigation it's for other is to the Indian it's of this market really issue a the I mentioned, for to the

which other other result, patents bonding requirements And seriously so early cases opportunity preliminary achieve the well also same sort some respect very there's is escrowing would Indian achieves the for to bringing injunctions, venue just infringe think the as important on think courts I and that that as of litigation about -- side with to the The have. Xiaomi willfully that result. in in have to at and continuing make we on

far our of And in with over courts many Indian and court the the to think matters don't speed. these just them field there. in doing new. But the Indian need have reasonable seem at it's are really despite friend the We field We at world, issues pandemic lot moved matters around I And law need these job tilted be a courts so has favor. in the way. courts fair related been the so courts a particular along the on all them a good we -- playing far playing Indian want. that's deal seem a know to

really I bring the choice. all was also And diverse, for that fact is be but those the so. in technologically different think, can important. need the that countries -- are only a reasons, those we And it as shows not think like other good it I actions factors seemed it So geographically in portfolio

Eric Wold

you know actually I litigation a and is Now, going country whatnot? you'd like if stray and global single say to the there's once did enough ever a call wrench of that license license, market get on large a have does global strategy in that your there public licenses on – this, are kind hurts always you is your you for if of a into but a let’s as is or you from focus throw pricing single they the be entity, other works getting them it that, okay would

Bill Merritt

slope. slippery Yes. Yes, I think a it's

If third you countries. they manufactured country. the nature in are designed right? of a in country, device, a sold It's think the country about one used XX devices, another mobile in parts It's in mobile fourth It's from sourced other country. what's

impossible, that So makes saying And rationale for the strong we've other is sense here. the country, just a worldwide a most a whole don't really have view that concept. the always approach the not it's of concept difficult I license absolute that. it's but I'm license one think covers taken

I and all slippery as holders So adamant all why very think been about of always slope [indiscernible] a that's it's a other license. patent there, worldwide it's we've the out

If The that standard enables country. you sales of nature the think themselves, is standards enable a about the in standards it worldwide. sales don't the whole

So having the enabled sales fall. license worldwide should

Eric Wold

are license end-market I first about license think me boxes should providing And talk side, pricing do licenses? larger -- about we license, what, mentioned That and the more of CE smaller TV in QX will to of a for the previously think makes of entity the providing irrelevant framework entities? you sense. towards it’s question question needed? the framework and tailwind setup a or deals you then licensees deals last bigger CE bigger in guess, framework kind talking sign signed they these on providing And Do as you the was larger consider these relatable entities smaller how the provide is, more some level as a smaller you

Bill Merritt

Yes, question so with last go the first. I'll

deal becomes reasons, which revenue, right. great. to They two important every contribute is for think I

and those an right. significant though the deals Second, unlicensed for in is sometimes customer sums therefore deal with people. may negotiations don't money they of away to when the because I can that other use signed go big reason, benchmarks provide smaller, they And you be as validation companies give customer, a do even are no

all of of you're very litigation, discounts, important, some The It in on litigation those that. volume third because you piece there's because think significant actually limits is when idea too, I agreements very right. to this go become important

for give they're validation, validation, in patent think important material give that us litigation. they so those And reasons. all us I usable They price

And as is see get so your I've then context we this, signing doing momentum back think it's it's mentioned, I in others I that at licensing, our been think for win important. And, really in -- -- really I this people because and it and helpful.

So, -- contributions handle terms in strategic that the that, I'll revenue [indiscernible] and but asked like other change that point. questions things to of you let

Unidentified Company Representative

that of side. Bill I contributions the non-recurring sorry, recurring the for from the top -- kind on $XXX framed it question. for Eric, some nature. had of with that some a distraction on are the business. a licensees just has basis, they a was But think in of in But is traction there Generally you of fashion. we it moved -- terms it's in of the And, We've your roughly provide, anyway, kind ebbs it discuss smaller business. so unit hasn't basis it's CE line what kind saying of this goal good because the flows success Yes. quarter-to-quarter some needle correctly more smaller recurring they on that the have new nice per a deals. that million and current dramatic It's XX% I'm in way We're

had So of estimating through We're into lower -- XX% actually to of that line. level sales quarter. when in unit underlying also we for that it's revenue current put turning per more a are that the our current going the reduced come perspective that on true-ups customer depend royalty some to quarter

for changed deals move more pile but further to it's eventually around. day, that the and like going and set traction begins us haven't to So do These up. up they

Eric Wold

for it’s the one. market [indiscernible] And newest

Bill Merritt

most it was the believe televisions. recent deals, I For

Eric Wold

you, Thank Great. guys.

Operator

[indiscernible]. question next comes from Our

Unidentified Analyst

on questions. quarter. my Yes, Congrats thanks for a taking great

if little I a start can wanted here. Rich context maybe OpEx, with bit So extra provide to wonder just you

a $X I to million think bump. you to $X million alluded

based in a was I think heard so. I there embedded was right that sequentially. that $X know QX comp I or million increase performance

follow naturally So could million want directly of component went got my a revenue that, much you related thinking to up. of that this know the I maybe to to speak right, to was a there or is about a And lift that up. then I've move how actually it's terms in $X be I share

Rich Brezski

a up on I given runoff Yes, case we there's this we don't and of know, to as acquisitions not bit point, expense charge recently impact provide so course, more more now be and momentum new case, movement typically in kind the going there can a but definitely which a P&L. or as to has you add, of a have filed, prior a kind Charlie, mean, some anticipate the little provide terms case. too litigation than is that just having of we we’ll But, at obviously, on of that. the factor traditionally to I filing have picking a try a heads of well that lot to We was much a which up typically guidance, a little wearable Technicolor bit going again, There's the as so. with do

it's at as So we'd was be if not but QX to to not all, it in it QX. it's expect that in not the level

that's component some definitely that's a non-recurring So smaller as of one then component the And items it. probably well. biggest of things there's

Unidentified Analyst

thinking those over Okay, and to as just normal? -- there that could click I'm sort ability Thanks. of maybe of picture anything perspective. it’s rest China license, you with your see then the the Huawei Bill, of curious, maybe to Is base of obviously realms in about XG great. the from of next be under And get progress whether just an cause or but factor ZTE, phone the external some the year whatnot great course big launches negotiations

Bill Merritt

or mean that I I can litigation Yes. the things right, bringing we of is litigation right? threat do, that There's are the helpful. even factors, – think obviously there so is

one. Huawei, against is Xiaomi, pretty And company and that's a benefits so one a of and that willing that’s message able clear it's think, protect I that strong now IP. ready, is to having the the -- its having pretty number filed Lenovo, XX% lawsuits of now

industry side driver. development a that Germany, which a a -- for Second, development which on has for actually I'm that great the which not things sure has been external establishment in been that XG I if But and customer and see may make to patent you're and not you you're faith with infringing if good that more an then bad to may offer, for be to like using the that framework what a draconian is you driver holder, later the is that negotiate think, the fail is wait legal a what the be are actually it in penalty of able negotiated and the launch having innovation the basically, like until or a you there in faith. says remedy

there the Just that that penalties maybe patent be can they done. if with people to as guess what get negotiate like deals actually there's I draconian you impact are just on holder, could other significant reasonable. a do if And a side, you reasonable it. in say causing have

I really up thought with. that German out structure it a So have the come well was actually thought courts

I can an function. forcing external think So, that be

Lenovo I by think import before Xiaomi the to other assisted or than finish that, litigation. I with think if as line the I can mentioned a get we

And to think I be. as heightened our on to going and outliers. being respect the -- not an a of the on outlier people want frankly lot respect other with is then focus administration where we China's that to India's start customers become Trump IP for the by

get we we the reasonable do things it's end more also it's that our fair So negotiations hopefully a again, and can are. There's our influence. ability lot we I in in there's simply at like policies I that of that to means there's variety day, think should the about customers where drive And ourselves we could highlight our to and we few -- think to there's a fire, things have developed external I we continue and done, can offer irons other of structures whole. we policies so. [indiscernible]. that that do, feel the a get And good be of

Unidentified Analyst

you Okay, call. great. so the appreciate I for Thank much it.

Bill Merritt

Charlie. Thanks

Operator

question next Scott comes ROTH Our Searle, Capital. from

Scott Searle

or in taking good did missed questions. Hey, for Thanks the and a Technicolor a Hey, have sure India if not ups But morning. number you the give I'm for quarter my video and this. afternoon. couple Rich, China? quickly, just follow Good on I I

Rich Brezski

number you a say We revenue? mean

Scott Searle

yep. Yes,

Rich Brezski

kind We Yes, quarter. And were that, that this [indiscernible] that Scott, even -- QX $XX that. really that's new annualized. then I things. in And based related to through at come yes. that had through actual with on a that operating couple and QX, QX. below little for million reports of mentioned we've came trending were deals, the We last true a booked our we're bit been two of roughly ups estimates in

So that’s at as And anticipating the we're estimate little in per per largely quarter. suppress and a numbers in for our addition, included royalties the then bit. I and an point things TV mentioned this unit businesses lower unit in

Scott Searle

of in litigation? of the Great, legal perfect. front, give us Indian India cadence idea could can the of terms And the the is terms the timing you on process of expect a otherwise in of better what injunction and we and what

Bill Merritt

I occur the decision things company on again, license maybe think the that moves has case. Yes, and Generally like the injunction that obviously. of the same requests around the on so think skilled it here very my self process little I our disclosure this -- think But sooner. in and a it’s that the somewhat folks up probably when predictability, that and eventual process of -- the sense counsel an internal hopefully front-end exists that a we're of in like purpose think think as extent area Xiaomi in money is to that after those happen it's get -- are at things other queue and you of also I company. it courts put senses, new have I the the do. that into the it's for the case and things, to the I niche level I are early on lack and the the for it's achieved seriously, front-end that My quicker I is their and think people Yes, the it's and think get to front-end is all obviously like statistic preliminary business that little

Scott Searle

that it's just to here up to a or point there and to point, the like this timeline table get engage. something with year? to injunction seems on associated decided Bill, trigger because would a be start is date So, the real them that follow Is that upon that the

Bill Merritt

don't -- and go at I developing speak. out back to look -- my as the it's and know put we be to disclosures of I we have that sort honesty So

an on. follow we so item that's And can up

year think -- that, I my important it's, I so is that's with quick understanding. that it's to thing. it think think And relatively I the That’s so said, through is, good halfway the part a [indiscernible]

Scott Searle

based enough. to And of more seen share features In to the get larger quarter. to quarter internationally. the within translated the transition using pretty I second China particular think in Oppo, given a of Huawei first limitations you've increase Android lot meaningful of from then It's Vivo and the market, OEMs. domestic over some certain the Fair aggressive

Huawei of tone front? combination and I'm So the and like the or pace how even it agreement Oppo engagement cadence in with litigation that Vivo attention it wondering the particularly of Xiaomi seems their if export and India licensing it, now of on more they're top the shifting is the with on with in changing given

Bill Merritt

reasons I Huawei has of so that pushed that right, getting focused and result Yes, little mean, is I that it the for are out gave others domestic on market you're you bit. think as the

the and to places their go. going which places grow cannot to got they're where to to, go where you'd decide expect, two we is they've to then So businesses,

and that companies they're we've in regions as IP. was jurisdictions ZTE there's court into ‘XX example, -- there provision just a the one, pressure things I'll they beyond to and once of the comes put predictable actually India specifically a that is into well where very U.S. was they're to the enforcement the seriously. have There's strong. to sort and in National Historically, and occur the year worked there of in more other can India, systems. Act dealing out they're brought some to take that more with U.S. been issues there Europe be extent XXXX a an give But, XXXX in never or do So regulatory stronger, Defense back need for those licensing provision IP while as moved within In can

that and ZTE. of -- on level some so pressure And created

regulatory these international And they're markets the that on subject way. know I helps. to that judicial things in more both So more, companies and significant focus a

of I has And we engagement about don't it’s feel good, losses. company feel is the like when the shy again, obviously, good. level been the appropriate So bringing not

Scott Searle

quick Great. environment, longer, and they connectivity, taking it I update you're it's stage, IoT in optimize on early the et what ability like bit COVID just seeing on know been thoughts like little a devices but wondering constant any a that updates that cetera front, And maybe seems auto -- are to the it's that does it's otherwise, little a become lastly more efficiently seems it's as results? terms gaining in connected Just more there the if so? or kind measurable of going are momentum, Thanks. XXXX, whether an and advance into of we're

Bill Merritt

I I was has think correct while I of accelerated connectivity, an So, sort and I the was obviously. that more need apparent for think in that have kind that constant important. always IoT way are hype, the seeing you're connectivity, thought you some this so pandemic a is that, what think people that would think even of is right the I direction it and making certainly is in think there's market of the -- There

I think in measure litigation through, platform. was nice onboard. it really a success, a it's working licensed the their had feel that Yes, and There’s they're position there. way been like getting Europe they're of good some in good [indiscernible] I

much that German don't their around a licensing environment ultimately, critical on think I it that filled people back I'll by continuing embraced one take think to And people decision. of technology. this because want very is such that German -- a I lot approach [indiscernible] is recent

I simply that at think cases that's lot place in should putting -- here a underlying is a of some be up to end these consuming in rational and not good structure important, it's reasonable. forces -- this a decision, resources, be ways be rational is there that result should people there result all which

think is it's [indiscernible] some are It Avanti just, slower. with roll happen. advancing do is. there part is how I And with that we the are very then constantly off, going licensing So to pieces off other one how a and where think know, see . little confident you here, the I we'll happened big is, the And to effective [indiscernible] extent two quickly lines settles, just

Scott Searle

Great, you. thank

Operator

from comes question next Our Financial MDC Research. Michael Cohen,

Michael Cohen

on I license you not Lenovo that fully than one like and thanks, are quarter. have share the Bill names Xiaomi? to you other Hi, would the under and congratulations Yes. could was wondering if some licensed that of parties

Bill Merritt

manufacturers. mostly is it the So Chinese

look -- Vivo, So Lenovo smattering. the it's, think they Oppo TCL, with were litigation ones or a Xiaomi, in I you and if at are there's that it's it’s

is major players But most I'm missing of relatively a think of the people cellular the I'd them Chinese players of market can major China, I of companies. say become relatively but There time. the outside cellular in standards in period are smaller beauty once short small. the and while, any is are of every

get the revenue I think to gave I us drivers you ones that to So our are the much that up desire platform. pretty --

Michael Cohen

of we it Department comments saw have your in Justice case filed in you Qualcomm's if statement we've U.S. the And, and Lenovo, a any seen them wondering in of now filed that? I on was government's and case interest

Bill Merritt

start to in it that, to stretch law making this think, original a taken not intended an Department that to effect. its you not starts sure are circumstances be has antitrust its they applied in. purpose, I applied that beyond sense of Yes, laws to Justice lose not in particularly particular extent the a in abused they're Because, interest were

why, founded. the that of the claims And there's a well that that's statement basically [indiscernible] use particular making advocate not the so, our are of claiming within antitrust antitrust, around And the discipline that division. case, -- antitrust sure claims, division they are been has [indiscernible] in the DOJ an filed

are we a sense. report. So happy lot make to see think that it We of

other kind side that -- it’s has the a if contract. an terms. it's non-discriminatory obligation at a disputes. there's on on look the breach negotiating they're to it's disputes and in of And good [indiscernible], dispute, essentially when actually make fair contract these faith very reasonable It's to a you get we've disagreement of undertaken to that – I And obligation straightforward it's, ultimately end on that, a a think as well.

of it's hopeful costly, And make to So, have things lot to make tried a more a the think lot a into issue, to or things been of other be it difficult. the I been complicated think is, right. it's applied I think it saying of licensing simplification I more what you're

very support We from to that DOJ. the are happy see

Operator

the are time. in at queue There questions further no this

Patrick Van de Wille

our Travis, very We forward call quarter. for Thanks, much, you you thank to quarter. giving you this everyone. and thank well the look joining update Okay, an next

Operator

Thank you, today's ladies and concludes gentlemen. teleconference. This

may You disconnect. now

InterDigital (IDCC) 6 Aug 202020 Q2 Earnings call transcript