Adeia Inc. (Nasdaq: ADEA) (“Adeia” or the “Company”), the company whose patented innovations shape the way the world explores and experiences entertainment, today announced that Samsung Electronics Co., Ltd., a global leader in the electronics industry, entered into a long-term agreement at the end of last year, renewing its license to Adeia’s media intellectual property (IP) portfolio for Samsung’s Smart TVs and related offerings.
Adeia
“This long-term renewal is a perfect illustration of how innovations emerging from Adeia support global industry players in the rapidly growing connected TV services market. It also demonstrates the strength of our current IP portfolio, which is constantly augmented through continuous innovation and development,” said Paul E. Davis, chief executive officer of Adeia.
Xperi, Adeia and the Patent Trap
This story wouldn’t be complete without acknowledging that last year Xperi was spun off from Adeia creating essentially a two-pronged attack by mutually beneficial parties to maximize a pretty broad range of patents including TiVo, DTS, HD Radio, and IMAX Enhanced. Essentially, Adeia is going after the Tier 1 manufacturers with its patent portfolio, and Xperi is leveraging that same portfolio to sell licensed products and services to Tier 2 and Tier 3 Smart TV companies. Adeia is a company that only a lawyer would love, and Xperi is an acknowledgement of the limitations of trying to kill-off Tier 2 and Tier 3 companies in litigation when you can make them customers.
I don’t know how much the Samsung license is worth to Adeia but judging by its own admission, it’s a lot:
We do know that Xperi claims that its version of an ARPU (average revenue per licensed installation per year) is about $25. We also know that Adeia is freed up to focus on realizing the full value of its patent portfolio for the benefits of its investors. It’s looking like the strategy is working out in so far as both companies are able to be fairly assessed by investors for their individual focuses.
