InterDigital secured a second pan-European injunction against Disney for infringing HEVC video encoding patents, strengthening its hand in licensing negotiations with the streaming giant.
"Encoding for HEVC is a key component of the high-quality, premium viewing experience that streaming companies like Disney use to justify higher subscription prices," Josh Schmidt, chief legal officer at InterDigital, said.
The Düsseldorf Local Division of the Unified Patent Court ruled the patent valid and infringed, issuing an injunction spanning 11 EU countries including France, Germany and Italy. Disney can appeal. The ruling follows a prior UPC injunction on a separate HEVC encoding patent and additional injunctions from courts in Germany and Brazil covering HDR technology, video casting and compression technologies related to HEVC and AVC.
The multi-country injunctions threaten Disney's European streaming operations, potentially disrupting Disney+ and other services that rely on HEVC encoding. For InterDigital, the rulings reinforce its ability to enforce patent rights across multiple jurisdictions and could accelerate a licensing agreement with Disney.
InterDigital, founded in 1972 and listed on Nasdaq, is a research and development company focused on wireless, video and artificial intelligence technologies. It generates revenue primarily through licensing its patent portfolio to companies across wireless communications, consumer electronics, IoT devices and video streaming services. The company has invested heavily in advanced video encoding technologies and has pursued multiple legal actions against Disney across European and Brazilian courts.
The UPC, a pan-European patent court established to streamline patent litigation across the EU, has emerged as a potent forum for patent holders seeking multi-country injunctions. Its decisions apply automatically across participating member states, giving patentees like InterDigital a powerful enforcement tool that national courts cannot match individually. Disney's ability to appeal leaves the final outcome uncertain, but the accumulating injunctions increase pressure on the company to reach a licensing settlement.
This article is for informational purposes only and does not constitute investment advice.