InterDigital (IDCC) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Our plans to expand our revenue opportunities may not be successful32% rewritten
2. 02Challenges relating to our ability to enter into new license agreements and renew existing license agreements could cause our revenue and cash flow to decline
3. 03Royalties or other terms under our patent license agreements could be subject to determination through arbitration or other third-party adjudications or regulatory or court proceedings, and arbitrators, judges or other third-party adjudicators or regulators could make unfavorable determinations
4. 04We could continue to be involved in a number of costly litigation, arbitration and administrative proceedings to enforce or defend our intellectual property rights and to defend our licensing practices22% rewritten
5. 05Our business and operations may be adversely affected by a deterioration in United States-China relations or broader trade and geopolitical conditionsNew
6. 06We may face setbacks in defending our patent licensing practices
7. 07We face competition from companies developing other or similar technologies
8. 08Royalties could decrease for future license agreements due to downward product pricing pressures and competition over patent royalties
9. 09Our technologies may not become patented, adopted by wireless or video standards or widely deployed
10. 10Setbacks in defending and enforcing our patent rights could cause our revenue and cash flow to decline
11. 11Scrutiny by antitrust authorities may affect our strategies for patent prosecution, licensing and enforcement and may increase our costs of doing business and/or lead to monetary fines, penalties or other remedies or sanctions
12. 12We are subject to risks resulting from customer concentration20% rewritten
13. 13We may not be successful in growing our business inorganically, and any acquisitions or strategic reactions could create risk and/or fail to yield the anticipated benefits
14. 14Our revenue may be affected by the deployment of future-generation wireless standards in place of 3G, 4G and 5G technologies or future-generation video standards, by the timing of such deployment, or by the need to extend or modify certain existing license agreements to cover subsequently issued patents32% rewritten
15. 15Our business and operations could suffer in the event of security breaches
16. 16We face risks from doing business and maintaining offices in international markets
17. 17Our business is subject to evolving corporate governance and public disclosure regulations and expectations that could expose us to reputational risks and legal liability
18. 18Our industry is subject to rapid technological change, uncertainty and shifting market opportunities24% rewritten
19. 19Our commercialization, licensing and/or M&A activities could lead to patent exhaustion or implied license issues that could materially adversely affect our business
20. 20Our use of open source software could materially adversely affect our business, financial condition, operating results and cash flow
21. 21We may have exposure to additional tax liabilities45% rewritten
22. 22Market projections and data are forward-looking in nature
23. 23Our strategic decisions about our patent portfolio involve risks, and the anticipated benefits of such actions may not be realized21% rewritten
24. 24Our business is subject to a variety of domestic and international laws, rules and policies and other obligations regarding data protection34% rewritten

Risks Relating to Our Common Stock and our Convertible Notes

1. 25Our operating results may fluctuate significantly, which could make our future results difficult to predict and could cause our operating results to fall below expectations
2. 26Our stock repurchase program may not result in a positive return of capital to shareholders
3. 27Our shareholders may not receive the level of dividends provided for in our dividend policy or any dividend at all, and any decrease in or suspension of the dividend could cause our stock price to decline
4. 28Securities analyst coverage or lack of coverage may have a negative impact on our common stock’s market price
5. 29Our indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under such indebtedness
6. 30The convertible note hedge transactions and warrant transactions that we entered into in connection with the offering of the 2027 Notes may affect the value of the such notes, and the market price of our common stock
7. 31We are subject to counterparty risk with respect to the convertible note hedge transactions
8. 32Provisions of the 2027 Notes could discourage an acquisition of us by a third party
9. 33Anti-takeover provisions could delay and discourage takeover attempts that shareholders may consider to be favorableNew

General Risk Factors

1. 34We may not be able to attract and retain qualified employees33% rewritten
2. 35Macroeconomic conditions may harm our business22% rewritten