InterDigital Inc (IDCC)

[Gamco]

ITC: Microsoft Did Not Infringe on InterDigital Patents
Microsoft will continue to pursue an antitrust lawsuit against InterDigital

Sep 1, 2015 Dan Kobialka | TelcoHub

InterDigital CEO William J. Merritt.

The U.S. International Trade Commission (ITC) will not block imports of Microsoft (MSFT) devices as part of Microsoft's ongoing dispute with InterDigital (IDCC). ITC officials last week ruled that Nokia (NOK) phones do not infringe on patents held by InterDigital. Here's everything you need to know.

The U.S. International Trade Commission (ITC) will not block imports of Microsoft (MSFT) devices as part of Microsoft's ongoing dispute with InterDigital (IDCC).

ITC officials last week ruled that Nokia (NOK) phones do not infringe on patents held by InterDigital.

"[This] decision is disappointing but is expected to have a limited impact on our going-forward business, given the decline of the Nokia mobile device business under Microsoft's control and its limited market position," InterDigital CEO William J. Merritt said in a prepared statement. "InterDigital will continue to seek compensation for past infringement and the further unlicensed use of our contributions to wireless mobile communication standards."

The case was first filed against Nokia in 2007, but in April 2014, Microsoft acquired Nokia's Devices and Services business for approximately $7.9 billion.

PCWorld noted that the ITC's most recent decision overturns an April ruling that stated Nokia and Microsoft Mobile products infringed on two InterDigital patents.

In addition, Microsoft will continue to pursue an antitrust lawsuit against InterDigital that was filed last week.

"We're grateful the Commission stopped InterDigital from trying to block our products," a Microsoft spokesperson told Bloomberg. "We'll continue to pursue our separate suit addressing InterDigital's unlawful conduct and abusive patent licensing scheme."

Microsoft recorded $22.2 billion in total revenues in FY15 Q4. However, Microsoft also wrote off the Nokia acquisition in its FY15 Q4 earnings report, recording a $7.6 billion "impairment charge" associated with the transaction.

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