Patent licensing
InterDigital develops wireless, video, and related communication technology and licenses its patent rights to other companies that use those technologies in their products and networks.
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InterDigital is a research and licensing company that develops technology used in wireless communications, video, and connected devices. It does not mainly sell physical products; instead, it creates inventions and patents that help devices and networks work better, especially in areas like mobile phones, Wi‑Fi, and video compression.
Its main customers are companies that make smartphones, tablets, network equipment, consumer electronics, and other products that use these technologies. InterDigital makes money mostly by licensing its patent portfolio, so these companies pay for the right to use its intellectual property in their products.
What makes its business different is that it sits earlier in the technology chain than most hardware makers. It focuses on technical research and owns intellectual property that others need to build into products, which gives it a royalty-style business model instead of one based on manufacturing or retail sales.
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