InterDigital rallies after reaching patent, settlement agreement with ZTE

InterDigital (IDCC) disclosed earlier in a regulatory filing that on October 18, it entered into a "multi-year, worldwide, non-exclusive, royalty-bearing" patent license and settlement agreement with ZTE Corporation (ZTCOY) and agreed to resolve virtually all of their existing disputes. The agreement covers the sale of ZTE's 3G, 4G and 5G handset and tablet products, as well as 802.11 and HEVC technologies incorporated in such products, and includes a partial release by InterDigital of claims of past infringement by ZTE, the company said. InterDigital and ZTE have agreed to terms for dismissal of all outstanding litigation and other proceedings among them and their affiliates. ZTE has also agreed to withdraw from all proceedings related to the Inter Partes Review of U.S. Patent No. 8,380,244, including the pending appeal before the U.S. Court of Appeals for the Federal Circuit, and to request the termination of or withdraw from any other invalidation or opposition proceedings it has initiated against InterDigital. InterDigital added that it has retained the right to continue to participate in any such IPR, invalidation or opposition proceedings, including any appeals. Shares of InterDigital are up 4%, or $2.04, to $55.15 in morning trading.