Xperi Holding Profile
Adeia Inc. operates as an intellectual property (IP) licensing platform.
The company has a diverse portfolio of media and semiconductor IP consisting of approximately 10,950 patents and patent applications worldwide.
The company is investing in advanced research and development to create market-leading technologies for the entertainment, media, consumer electronics, and semiconductor industries. The company’s innovative solutions touch practically every aspect of consumers' day-to-day interaction with media, consumer electronics and entertainment, enabling the company’s customers to build customized, next-generation solutions for users around the globe. The company’s commitment to innovation has resulted in a leading intellectual property (‘IP’) licensing platform in these industries, with a diverse portfolio of media and semiconductor IP. In order to serve an increasingly connected world, the company invents, develops, acquires and licenses fundamental innovations that enhance billions of devices and shape the way millions of people explore and experience entertainment across a variety of platforms.
The company’s IP licensing platform provides access to innovations that allow the company’s customers, who are some of the largest media, entertainment, consumer electronics, social media and semiconductor companies in the world, to create cutting-edge technology solutions and products. The company’s engineers and scientists are focused on innovating and creating the most advanced and forward-thinking solutions to help solve challenges facing the media and semiconductor industries. The company’s internal innovation engine accounts for approximately 85% of its combined patent portfolio and generates ideas that are converted into the company’s powerful IP, which enables fundamental technologies in its target markets.
The company has a long history of innovation across a diverse set of applications and technologies and has grown an IP portfolio of approximately 10,950 media and semiconductor patent assets, which are specifically designed to meet the evolving needs of businesses and consumers. The company’s media portfolio covers fundamental aspects of the entertainment experience across platforms, including how users search, save, stream, discover, consume, personalize and interact with content. Many of the company’s media solutions have become ubiquitous across the industry and are being incorporated into emerging solutions that span new and adjacent markets. The company’s semiconductor portfolio is consisted of patents and technology know-how that enable the new era in semiconductors, including the next generation of logic and memory semiconductors that are powering the increasing demand for generative artificial intelligence applications. The company’s semiconductor portfolio generally covers three fundamental technology areas, hybrid bonding (or Direct Bond Interconnect (DBI)), advanced processing nodes, and advanced packaging solutions. Specifically, the company’s portfolio enables the company to address the semiconductor market demands of higher bandwidth, improved compute performance and cost management in heterogeneous integration.
Strategy
The company has adopted a proactive strategy designed to protect and extend the company’s technology and IP. The company continues to grow its patent portfolios in size and relevance through ongoing investment in internal innovation, strategic management and targeted acquisitions within the company’s target markets.
The company conducts its business primarily by licensing the company’s innovations to leading companies in the broader media and semiconductor industries and companies adopting new technologies that will help drive these industries forward. License arrangements include access to one or more of the company’s foundational IP portfolios and may also include access to some of the company’s industry-leading technologies and proven know-how.
Media Strategy
The company invents, develops, and licenses fundamental innovations that shape the way millions of people explore and experience entertainment and enhance media services that span billions of devices in an increasingly connected world.
The company’s patented innovations broadly cover all aspects of the entertainment experience, including (i) guidance, (ii) discovery, (iii) search, (iv) recommendations, (v) multi-screen, (vi) personalization, (vii) data analytics, (viii) advertising, (ix) computer vision, (x) content storage and (xi) high-performance computing.
The company licenses its patented media innovations for use with traditional linear television, both in North America and internationally, as well as in connection with OTT and social media services that provide access to entertainment inside and outside the home on a broad array of devices. The continued growth of video consumption, the evolution of how consumers explore and experience video, and the need for content storage and high-performance computing present new opportunities for the company to continue to develop patentable innovations, expand the industries the company serves, and license additional patent rights.
Semiconductor Strategy
The company’s semiconductor business invents, develops, and licenses the fundamental technologies that enable the current and next generation devices that the company uses to watch and enjoy entertainment. The company is focused on two emerging technologies, hybrid bonding and advanced processing nodes, both of which address semiconductor market demands for higher bandwidth, improved compute performance and cost management with 2.5 and 3D heterogeneous integration. The company licenses its patented innovations to leading semiconductor companies, and partner with the industry to accelerate the adoption of these technologies.
Recently, the company has also launched a co-optimization effort that builds on the company’s core fundamental semiconductor IP.
IP Portfolio Licensing Markets
The company’s business has a strong foundation of recurring, annual revenue. That revenue is derived from licensing the company’s patent portfolios across multiple markets, including:
Multichannel Video Programming Distributors (‘MVPD’): Includes cable, satellite and telecommunications television providers that aggregate and distribute linear content over their own networks (MVPDs), as well as television providers that aggregate and stream linear content over broadband networks (virtual MVPDs). Customers typically pay the company a monthly per-subscriber fee and include many of the leading MVPDs and virtual MVPDs such as Altice USA (including Optimum), AT&T (including DirecTV and DirecTV Stream), Charter, Comcast (including Sky), Cox, DISH Network (including Sling TV), Google (including YouTube TV), Verizon and Vodafone.
OTT Video Service Providers: Includes subscription video-on-demand (‘SVOD’) and free advertising-supported streaming service (FAST) providers that offer online services and devices that enable internet streaming and downloading of movies, television shows, music and other types of media content, as well as content providers, networks and media companies that provide content directly to consumers through a variety of business models. Customers have typically paid the company fixed fees for specified periods of time and include some of the leading media companies and services including DAZN, Google (including YouTube), Starz and Peacock.
Consumer Electronics (‘CE’) Manufacturers: Includes producers of content access points such as smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices and other connected media devices. The company’s CE licenses are typically structured as license fees based on the number of units licensed, for specified products, in defined territories. The company’s agreements with some of the larger CE manufacturers generally allow customers to ship an unlimited number of units, provided they pay the company fixed fees for specified periods of time. Select customers include Panasonic, Roku, Samsung and TCL.
Social Media Companies: Includes social media companies that allow users to stream and upload user-generated content, often leveraging a variety of computer vision technologies. Customers have typically paid the company fixed fees for specified periods of time and include several of the leading social media companies.
Semiconductors: Includes providers of memory, logic, sensors, and radio frequency (‘RF’) devices commonly used in electronic products such as mobile phones, laptops, PCs, game consoles and servers. The company’s agreements with its semiconductor customers can include fixed fees, per-unit fees, milestone based fees, or a combination of these fees. These agreements are typically for specified periods of time, and the company’s customers include Kioxia, Micron, OmniVision, Samsung, SK hynix, Sony, UMC and Western Digital.
The company continues to grow its business with several specific opportunities, including:
Greater Penetration in OTT: The OTT market is experiencing explosive growth. For example, the leading provider of SVOD now has worldwide subscribers in excess of 200 million. While these services have significantly lower ARPUs as compared to traditional Pay-TV, the scale of the overall OTT video market continues to grow and presents an increasingly important licensing opportunity for the company’s business. While the company is at a comparatively earlier stage of licensing the key providers in this market, the company is confident that the fundamental innovations from the company’s patent portfolios will be similarly relevant to these new and widely-adopted OTT video services.
Accelerate the Semiconductor Licensing Business: With the rising cost and complexity of developing cutting-edge semiconductor manufacturing processes, the industry is increasingly looking beyond Moore’s Law towards advanced packaging and 3D integration technologies. Leveraging the combination of the company’s highly-experienced technologists, scientists and engineers and the company’s advanced research and development (‘R&D’) labs, the company continues to develop industry-leading 3D integration solutions such as hybrid bonding that meet the demand for greater functionality, higher performance and smaller size for the next generation of electronics.
Expand into New and Adjacent Markets: With the proliferation of media discovery and distribution and computer vision technologies into new and adjacent markets outside of the company’s MVPD, OTT, and social media markets, new opportunities have emerged for the company to leverage its existing IP portfolios to seek license arrangements with many new companies. Some of these new markets include companies that provide advertising technology, automotive, e-commerce, gaming, and music streaming products and services.
Expansion of MVPD Licensing Internationally: The company continues to license MVPDs internationally and have already successfully licensed several leading providers. Licensing unlicensed international MVPD providers presents a significant opportunity for expanding the company’s business.
Intellectual Property
As of December 31, 2023, the company held approximately 10,950 patent and patent applications worldwide, including approximately 4,800 United States issued patents and 1,600 patent applications, as well as approximately 3,500 foreign issued patents and 1,050 patent applications. The last of the company’s issued patents are set to expire in 2042.
History
Adeia Inc. was incorporated in 2019.
