InterDigital Inc. (NASDAQ: IDCC) received a preliminary injunction against Transsion from a Brazilian court, preventing the smartphone maker from selling 5G-compliant devices in Brazil.

The 3rd Regional Business Court of Rio de Janeiro ruled that Transsion infringed two InterDigital 5G patents and found InterDigital's licensing offer to be fair, reasonable and non-discriminatory. The decision followed an independent expert report commissioned by the court that supported InterDigital's position on patent infringement and determined the patents are essential to 5G technology.

"Transsion should pay fair value for technology that it uses every day and cannot be allowed to gain an unfair advantage over so many of its competitors who have paid for a license to our portfolio," said Josh Schmidt, Chief Legal Officer at InterDigital.

InterDigital is a wireless, video and AI technology research and development company that licenses its innovations to device manufacturers and service providers. The company was founded in 1972 and focuses on foundational technologies for connected devices and communications systems.

The information is based on a press release statement from InterDigital.