InterDigital, Inc. ( IDCC Quick Quote IDCC - Free Report) has secured a multi-year, worldwide licensing deal with Seiko Solutions Inc. in a bid to incorporate its standard essential patents related to cellular wireless technologies in the latter’s range of phones. The agreement strengthens InterDigital’s long-term investment in research and innovation while underscoring the importance of its diverse patent portfolio across several key technologies in the global market. Seiko Solutions is a Japan-based tech company that is involved in the development of network solutions, system integration, payment solutions, and mobile solutions. Some of its affiliated companies are Seiko Watch Corporation, Seiko Instruments Inc., and Seiko NPC Corporation. These entities are either involved in the manufacturing of watches and precision components or marketing of integrated circuits. Seiko Solutions has been striving to establish itself as a leading mobile solutions vendor in the M2M market. The company delivers avant-garde products based on wireless and miniaturization technologies to its customers, thanks to its expertise in mobile technology. Some of the products related to its mobile solutions segment are wireless routers, mobile phones, smart healthcare products, and wireless sensor networks. Per the agreement, the non-exclusive, royalty bearing license will support Seiko Solutions’ phones. These phones will be equipped with InterDigital’s crucial patents related to 3G, 4G, and 5G cellular wireless technology. Thanks to their long-standing relationship and constructive bilateral negotiation, both the entities have renewed the licensing agreement. InterDigital’s commitment toward licensing its broad portfolio of technologies to wireless terminal equipment makers, which allows it to expand its core market capability, is praiseworthy. Nearly 80 companies across the globe licenses InterDigital’s patent technology, including leading firms like Apple Inc. ( AAPL Quick Quote AAPL - Free Report) , Huawei, Samsung, LG and Sony Group Corporation ( SONY Quick Quote SONY - Free Report) . InterDigital’s shares have gained 17.3% compared with the industry’s growth of 32.7% in the past year. Image Source: Zacks Investment Research
Its patented technologies are used in several products like mobile devices, wireless infrastructure equipment as well as IoT devices and software platforms. During second-quarter 2021, InterDigital inked an agreement with Xiaomi for licensing its patent portfolio. This underscores the strength of its portfolio across several key technologies related to cellular wireless, including 3G, 4G, and 5G, Wi-Fi, and HEVC video technology.
InterDigital’s global footprint, diversified product portfolio, and the ability to penetrate different markets are impressive. Apart from the Wilmington, DE-based company’s strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface, and video to its offerings is likely to drive significant value. Furthermore, the company remains committed to pursuing acquisitions in order to drive its product portfolio and boost organic growth. The stock currently carries a Zacks Rank #2 (Buy). Another top-ranked stock in the industry is Clearfield, Inc. ( CLFD Quick Quote CLFD - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Clearfield pulled off a trailing four-quarter earnings surprise of 49%, on average.