A PYMNTS Company

Disney Unit Accuses InterDigital of Monopolizing Video Compression Patents

By  |  August 12, 2025

A subsidiary of the Walt Disney Co. has filed an antitrust lawsuit against InterDigital Inc., alleging the wireless technology company is abusing its control over key video-compression patents to demand inflated royalty payments.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to a statement in the complaint filed on August 8 in the US District Court for the District of Delaware, Disney Enterprises Inc. claims InterDigital has engaged in monopolistic conduct in both the US and international markets for technologies essential to streaming. The lawsuit centers on patents tied to the H.264 and H.265 video-encoding standards, which Disney says are crucial for delivering content seamlessly across devices for platforms such as Hulu, Disney+, and ESPN+.

    Read more: NFL-Disney Deal Expected to Face DOJ Scrutiny Over Antitrust Concerns

    Per the statement, Disney contends that existing agreements require InterDigital to offer “reasonable and non-discriminatory” licensing terms, but the company has allegedly failed to do so. The entertainment giant is seeking court intervention to halt the licensing practices it views as unlawful, in addition to pursuing damages that could be tripled under antitrust law.

    The complaint further accuses InterDigital of maintaining an unlawful monopoly over video compression and streaming technology worldwide, effectively limiting competition and inflating costs for essential technology.

    O’Melveny & Myers LLP and Morris, Nichols, Arsht & Tunnell LLP are representing Disney Enterprises in the case.

    Source: Bloomberg