InterDigital wins UPC injunction against Disney spanning 11 EU countries

InterDigital won a Unified Patent Court injunction against Disney over HEVC video encoding patents, with the ruling covering 11 EU countries and strengthening its licensing leverage against the streaming giant.

"Today's streaming industry could not function without the advanced video technologies that InterDigital researchers have pioneered," Josh Schmidt, Chief Legal Officer at InterDigital, said. "We remain committed to securing a long-term agreement with Disney, which reflects fair value for innovation that Disney uses every day."

The Mannheim Local Division of the UPC confirmed the validity of InterDigital's HEVC (High Efficiency Video Coding, also known as H.265) patent and issued the injunction, marking the first UPC ruling against Disney for the company. Previous injunctions were obtained in Germany and Brazil covering high dynamic range technology, dynamic video overlay, and additional HEVC and AVC compression techniques. Disney can appeal the decision.

The ruling adds to a string of recent positive catalysts for InterDigital. The company last week signed a new patent license with Amazon covering Prime Video and other services, sending shares up 9%. IDCC rose 1.81% on the news, trading at $288.87, though volume of 302,622 remained below the 20-day average of 366,902.

The UPC operates as a pan-European patent court whose decisions apply across multiple EU member states simultaneously, giving InterDigital a powerful enforcement tool across the region. For Disney, the injunction creates operational risk in European markets and increases pressure to reach a licensing agreement. InterDigital has said it remains committed to securing a long-term deal.

InterDigital, founded in 1972 and listed on Nasdaq, holds a portfolio of patents essential to modern video streaming. Its technologies underpin HEVC, which compresses high-quality video into smaller files to reduce bandwidth use, and HDR, which expands the contrast range between dark and bright areas in video imagery. These standards are used across streaming platforms, smart televisions, and mobile devices from companies including Apple, Samsung, and LG.

The company's enforcement strategy has yielded results beyond Disney. Earlier this month, InterDigital entered into a new video services and devices patent license with Amazon, covering Prime Video and other offerings. The company also declared a regular quarterly dividend of $0.70 per share on June 11 and has showcased 6G research and AI-enabled interactive augmented reality at recent industry conferences.

InterDigital shares trade below their 200-day moving average of $331.37, suggesting the market has not fully priced in the company's recent licensing momentum. The Amazon deal and the UPC injunction against Disney could narrow that gap if they lead to recurring revenue from new licensing agreements.

This article is for informational purposes only and does not constitute investment advice.