And as far as usefulness for this report, we do frankly demonstrate the overall value to our licensees during negotiation. And we do it in frankly a number of different ways. We demonstrate to them our pedigree research. We demonstrate the overall portfolio. We give them some third-party report, but also we frankly, if they wanted to get much deeper in terms of where’s proof of use type of report. And regarding litigations, and this is also one of the things people can point to, but frankly, we also bring much more in-depth evidence in those process.
Mark Lipacis : Very helpful. Thank you very much.
Liren Chen : Of course.
Operator: Thank you. And for your next question, it comes from the line of Anja Soderstrom from Sidoti. Anja, your line is open. Please ask your question.
Anja Soderstrom : Hi, and thank you for taking my questions. Most of them have been answered already, but I’m just curious in terms of the other opportunity. You noted that you’re a founding member now of Avanci. Where are you in terms of that opportunity and how do you expect that to build up?
Liren Chen : Okay. Hey Anja and good morning. So for the automobile, we are – by the way, we were a founding member for the 4G Avanci program, and we are quite excited to see how that program has developed over the years. And as we reported in the prior quarter, they have more than 80% of the kinetic car licensed under 4G. So now the 5G program has been launched and we are equally excited to be a founding member for 5G program. So as I said in my prepared remark, the 5G value for kinetic cars is significantly higher than 4G. So therefore the overall rate is about doubling the 4G rate. So we benefit from essentially a higher value per device regarding that dynamic. But keep in mind that as of now, about half the cars sold every year are connected, but that’s scheduled to increase as more and more new cars will be all connected.
So therefore that – I believe the connectivity portion of the 4G is growing roughly 15% year-over-year. And then the 5G adoption of the kinetic car will also increase. So compounding those two parameters, we feel that give us a very good driving factor over probably the next five to 10 years.
Anja Soderstrom : Okay, thank you. That was all for me.
Liren Chen : Thank you.
Operator: All right, thank you. And for your next question, it comes from the line of Arjun Bhatia from William Blair. Arjun, your line is open. Please ask your question.
Arjun Bhatia : Yep. Hey, thanks guys. Liren, maybe for you, the Lenovo deal is interesting, because you have video for both smartphone and CE. When you look at your smartphone contracts, what kind of room is there to do a cross sell per se to get some of those smartphone agreements to sign on for CE, IoT as well? I imagine a lot of those customers have both in their portfolio, but where are you in discussions of that and getting those potential licensing agreements signed?
Liren Chen : Yeah, so Arjun, yeah, let me comment on what you said the first part. Yeah, so we signed the Lenovo deal for the HEVC technology that apply both to their CE, which is primarily their PC, as well as the smartphone. So regarding other vendors here, it’s somewhat a case-by-case space because some of the vendors, frankly, have primarily smartphone devices. Then in those contexts here, we will try to get valuation both for our cellular technology as well as our HEVC technology on the smartphone. But there may be other vendors who have a mix of different products, and some of them may be cellular-based, some of them may be frankly video without cellular, and some of them may be Wi-Fi connected for IoT. So when we negotiate, we have to try to bring all those assets and highlight how they are benefiting from all of them and try to get paid, frankly, most of our technology.
Arjun Bhatia : Okay, got it. And the settlement with Lenovo this quarter, for the HEVC, does that have any impact on the other outstanding litigation that you have going with them?
