The patents Intel purchased are chiefly related to 3G, LTE and 802.11 technologies. LTE and 802.11 are each standards for wireless communications, while 3G refers to the third generation of mobile telephony standards.
The purchase “will support Intel''s strategic investments in the mobile segment”, said the company’s senior vice president and general counsel Doug Melamed.
InterDigital senior executive vice president of strategy and finance, Scott McQuilkin, said that although the sale “involves a small portion of our overall patent portfolio”, it “marks an important milestone of InterDigital''s stated strategy of expanding the monetization of its large and growing intellectual property portfolio”.
“By executing on our business plan, which has been broadened to include patent sales, licensing partnerships and other possibilities, we see tremendous potential to expand revenue and build shareholder value," he added.
In January, InterDigital closed a six month review period during which it sought to sell its portfolio of 20,000 patents with no takers. The company said at the time that it would focus instead developing wireless technologies “and the monetization of those assets through vigorous and comprehensive patent licensing and sales efforts”.
InterDigital expects to be able to generate “sustainable annual revenue of at least $800 million in three to five years”.
Morrison & Foerster represented Intel in the deal.