InterDigital: Setting Wireless Standards - [Business Breakdowns, EP.166]

11 snips

May 29, 2024

Jenny Wallace, Co-founder, and CIO of Summit, discuss InterDigital's history, patent portfolio, and role in mobile communication technology. Topics include patent enforcement, future prospects, strategic investments, and risks in the evolving mobile market.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Patents Enable Wireless Standards

InterDigital's patents enable wireless communication by efficiently transmitting data across electromagnetic spectrum.
Their technology standardizes data transmission so phones from different carriers can seamlessly connect and communicate.

ANECDOTE

Secure Comm at Crash Site

In 1990, InterDigital rapidly deployed a secure digital communication system for first responders at a remote crash site on Long Island.
This technology was already used by the White House for secure ranch communication during President Reagan's horseback rides.

INSIGHT

Leadership on Standards Committees

InterDigital engineers hold leadership on 100+ industry standards committees, influencing key wireless communication protocols.
Their status reflects top-tier expertise and strategic ability to advocate for their patented technology.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Today we are breaking down InterDigital, a really interesting business that sits completely under the radar for most investors.

InterDigital has the foundational patented technology that makes mobile phone communication and device-to-device communication possible. Everything revolving around 2G, 3G, 4G, 5G, the Internet of Things, and all of these devices in the world that communicate with one another is underpinned by InterDigital technology.

My guest is Jenny Wallace, co-founder and CIO of Summit Street Capital Management. We discuss InterDigital's five decades of history, what it takes to maintain its patent portfolio of 30,000 patents, and much more. Please enjoy this Breakdown on InterDigital.

Register for the Business Breakdowns x Founders Conference.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

-----

This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account.

-----

Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes

(00:00:00) Introduction to Business Breakdowns

(00:04:40) The History and Evolution of InterDigital

(00:05:49) InterDigital's Impact on Wireless Communication

(00:10:12) Exploring the Patent Portfolio and Business Model

(00:16:13) Technology as the DNA of the Company

(00:20:45) An Evolving Business Model and Maintaining 30,000 Patents

(00:25:00) InterDigital's Legal Battles and Financial Health

(00:31:12) Volatility in InterDigital’s Revenue Stream

(00:37:21) R&D Spend as a Key Focus

(00:41:13) The Future of InterDigital: Opportunities and Challenges

(00:48:57) Investment Perspectives and Valuation Insights

(00:53:46) Lessons Learned From InterDigital