In a significant legal development, InterDigital Inc. (Nasdaq: IDCC), a prominent player in wireless and video technology innovation, has been awarded an injunction against Disney by the Unified Patent Court (UPC) as of July 23, 2026. This ruling marks a pivotal moment in the ongoing patent disputes between the two companies, particularly concerning video encoding technologies.

1. Details of the Court Ruling

The Düsseldorf Local Division of the UPC ruled in favor of InterDigital, confirming the validity of its patent related to High Efficiency Video Coding (HEVC) techniques. This injunction is not just a legal victory but also extends across 11 countries in the European Union, including major markets such as France, Germany, and Italy. Disney has the option to appeal this decision, which could prolong the legal battle.

This ruling represents the second injunction against Disney for similar HEVC encoding infringements, signaling a pattern of judicial support for InterDigital's claims. The UPC's decision is particularly notable as it reinforces the strength of InterDigital's intellectual property rights in the competitive landscape of video streaming technologies.

2. Broader Context of Legal Disputes

InterDigital's legal actions against Disney are not limited to this recent ruling. The company has previously secured injunctions from national courts in Germany and Brazil, targeting Disney's infringement of its intellectual property in several areas. These include high dynamic range (HDR) technology, the dynamic overlaying of multiple video streams, and various compression technologies related to both HEVC and Advanced Video Coding (AVC).

These ongoing legal disputes underscore the fierce competition in the streaming industry, where companies like Disney rely heavily on advanced technology to enhance user experience and maintain premium pricing strategies.

3. Statements from InterDigital Leadership

Josh Schmidt, Chief Legal Officer at InterDigital, commented on the significance of the ruling, stating, “Encoding for HEVC is a key component of the high-quality, premium viewing experience that streaming companies like Disney use to justify higher subscription prices.” Schmidt emphasized InterDigital's commitment to innovation, noting that the company has made substantial investments in developing advanced video encoding technologies. He reiterated the importance of securing a fair return for Disney's use of their patented innovations.

4. About InterDigital

Founded in 1972, InterDigital is a global research and development firm focused on wireless, video, and artificial intelligence technologies. The company designs foundational technologies that enable connected and immersive experiences across a variety of communications and entertainment platforms. InterDigital’s innovations are licensed worldwide to manufacturers of wireless devices, consumer electronics, Internet of Things (IoT) devices, and cloud-based service providers, including video streaming companies.

With a strong foothold in the wireless technology sector, InterDigital has a rich history of developing influential technologies that have shaped the landscape of digital communications, from early cellular systems to the latest advancements in 5G and Wi-Fi.

As the legal landscape continues to evolve, InterDigital remains vigilant in protecting its innovations, ensuring that its contributions to technology are recognized and compensated appropriately.

This ruling not only reflects InterDigital's dedication to innovation but also highlights the critical nature of protecting intellectual property in today’s rapidly evolving technological ecosystem. As the appeal process unfolds, the industry will be watching closely for further developments in this high-stakes legal battle.

Original press release