InterDigital eyes greater tech cooperation with Chinese firms

InterDigital, the United Statesbased mobile and video technology provider, remains confident about China’s 5G market and about greater technological cooperation between the two countries amid the global scramble to develop and deploy the superfast telecom technology, a top company official said.

William J Merritt, president and chief executive officer of the company, said: “More Chinese companies are taking part in the global 5G standard-setting process and playing a very important role. We are all committed to the advancement of 5G and beyond 5G technology through technological research and development.”

On the company’s relations with China, Merritt said it was more of a blend of competition and cooperation. “We compete to come up with the best solutions. But we also realize that we’re working together, as a group, to advance technology across the entire ecosystem,” he said.

In April, the company signed a multiyear, worldwide, nonexclusive patent license agreement with Chinese telecoms equipment manufacturer Huawei Technologies Co Ltd. The agreement covers certain Huawei products and certain InterDigital essential patents.

The agreement was reached amid challenging circumstances given the current economic downturn brought by the COVID-19 epidemic. The economic environment created by the global pandemic has helped make the economic gaps in the negotiations smaller and easier to navigate, said Merritt.

The company said that Chinese enterprises are playing an increasingly important role in the global communications industry, including 5G. More than half the smartphones shipped around the world are from Chinese companies — the effect is obvious.

The company is willing to work with other Chinese manufacturers in setting technology standards, including 5G standards, as the unification of standards translates innovation into revenue, it said.

The company, as a leading formulator of multiple standards in wireless and imaging technology research, including virtual reality and augmented reality technologies, has cooperated with many industry leaders, such as Samsung, Apple, Sony, Qualcomm, Nokia, Intel, China Mobile, MediaTek, ZTE, NTT, NEC, LG, and Microsoft. It listed on Nasdaq and was included in the S&P MidCap 400 index.

Xiang Yang, a 5G expert at CETC Fund and a former 5G analyst at the CCID Consulting research firm in Beijing, said that currently, the US government has not imposed curbs on virtual reality and augmented reality technologies, which opens doors for cooperation between Chinese and US companies.

From the US firm’s perspective, working with Chinese technology companies is a mutually beneficial process. Huawei is also willing to work with US companies, to grow its US market, like it did before the Sino-US trade dispute, he said.

“InterDigital’s cooperation with Chinese companies demonstrates its confidence in the Chinese market, including the 5G market,” he said.

According to Merritt, trade disputes between China and the US will not affect the company’s determination to cooperate with Chinese technology companies.

“Huawei’s situation with the US government is one that’s completely separate from our license with them and their implementation of global standards,” he said.

“It is true for all the companies that work on standards, regardless of nationality — in wireless standards we see contributions from US, Chinese, Japanese, South Korean and European companies,” he said.

The company said that China has a very large and strong wireless market, and has moved very quickly with 5G deployment. It will be interesting to see how that translates into value for individuals and industries, he said.

“5G will usher in new opportunities and use cases throughout our technology ecosystem and is very useful to support a smarter and increasingly connected future, in any country around the globe. China is no different. 4G is a fantastic technology and still is, and will continue to be for a long time. New digital infrastructure like 5G, artificial intelligence, and machine learning will expand the possibilities for immersive, interactive, and intuitive experiences,” Merritt said.

“We are looking forward to more cooperation with Chinese companies in building the technology ecosystem,” he said.