InterDigital, Inc. (NASDAQ:IDCC) filed a patent‑infringement lawsuit on November 10, 2025, accusing Amazon.com, Inc. of using the company’s video‑compression and high‑dynamic‑range (HDR) technology without a license. The suit targets Amazon’s FireTV and Kindle devices as well as its Prime Video streaming service, alleging infringement of patents that cover HEVC, VVC, AV1, and VP9 encoding and HDR processing.
The lawsuit is being pursued in four key jurisdictions: the U.S. Federal District Court in the District of Delaware, the Rio de Janeiro State Court in Brazil, the Munich Regional Court in Germany, and the Mannheim division of the Unified Patent Court. These venues are chosen for their strong patent‑litigation track records and the ability to enforce cross‑border judgments, giving InterDigital a broad legal shield over its worldwide portfolio of more than 30,000 granted patents and pending applications.
InterDigital’s strategy has long been to monetize its foundational video and wireless technologies through licensing. The company has previously sued Disney, Microsoft, and ZTE for similar infringements, and the Amazon case represents a high‑profile extension of that strategy. A favorable ruling could generate substantial licensing revenue and reinforce InterDigital’s position as a key supplier of video‑compression standards to the streaming and consumer‑electronics markets.
Chief Legal Officer Josh Schmidt said InterDigital prefers to resolve disputes through negotiation, but Amazon’s decision to file suit earlier in 2025—over patents related to streaming delivery—demonstrates the company’s willingness to litigate. Schmidt emphasized that fair compensation is essential for continued investment in next‑generation video and AI technologies, underscoring the company’s long‑term growth plan.
Amazon’s earlier lawsuit, filed in March 2025, alleged that InterDigital’s patents were infringed in Amazon’s cloud‑based media services. While Amazon has not yet secured a judgment, the two parties have been in a protracted legal battle that has now escalated to a broader set of jurisdictions.
The choice of courts reflects strategic considerations: Delaware is a premier venue for U.S. patent litigation; Rio de Janeiro is known for granting preliminary injunctions in favor of patent holders; Munich and the UPC provide a unified European forum that can streamline enforcement across multiple EU member states. By filing in these courts, InterDigital seeks to maximize the likelihood of a favorable outcome and to deter future infringement by other tech firms.
If the lawsuit succeeds, InterDigital could secure a significant licensing stream from Amazon, a company that streams billions of hours of video annually. The case also signals to other technology companies that InterDigital’s patents are enforceable worldwide, potentially increasing the company’s bargaining power in future licensing negotiations. However, the litigation will incur substantial legal costs and the outcome remains uncertain, presenting both a headwind and an opportunity for the company’s long‑term revenue strategy.
No immediate market reaction data are available, but analysts will likely monitor the case for its implications on InterDigital’s licensing revenue and on the broader patent‑licensing landscape in the video‑streaming sector.
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