InterDigital Inc (IDCC)

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American Arbitration results Arima Interdigital patent royalties to be paid 19 million dollars
Technology Industry Information Office - May Posted May 20, 2014
Interdigital standard patent manufacturers and Arima standards essential patents for wireless communication between mobile phones (Arima) (SEPs) royalties dispute, the parties agree not to go the Court of mutual control and selected by the American Arbitration Association (the American Arbitration Association's International Centre for Dispute Resolution ; AAA / ICDR) for arbitration hearing, May 13, 2014 AAA / ICDR issued a ruling Arima pay royalties payable Interdigital Interdigital 14.5 million during the arbitration and attorneys' fees, $ 4.5 million related to interest, totaling 19 million U.S. dollars (NT about 573 million yuan).

Taiwan mobile phone industry from the traditional phone starts after an ODM model for the brand mobile phone manufacturers design phones prevalent communications standards on pay patent royalties, in order to save costs, ODM industry usually negotiated paid by the customer with the customer. However, with those who enter the smart phone era, the domestic mobile phone industry operators countries in order to fight the order, they must come forward to solve their own manufacturers such as authorization standard patent holder of several key patents and royalties paid Interdigital issues; or Taiwanese ODM industry in the scope of the license agreement the customer finds appear divergent, the Taiwanese ODM industry must bear the aftermath of these royalties, Arima is an example.

Both sides raised the patent license agreement, InterDigital and Arima signed contract wireless communications technology patents, InterDigital explain differences due to contractual issues, the United States filed for arbitration and request Arima licensing fees paid by the American Arbitration Association arbitration tribunal. According to electronic media reports Interdigital Arima in 2011 to design and semi-finished products for Motorola way exports to Brazil, to complete the final assembly of a number of models in Brazil plant, unpaid royalties, citing requirements to pay Arima Arima in arbitration While seeking assistance during Motorola, Motorola believes that the rights of semi-finished gold should be paid by Motorola, Arima and thus lose the arbitration. Arima said, will be recognized as expenses in the second quarter. (520 words)

References:

InterDigital, Inc.. (IDCC) Updates on Arima Communications Arbitration (2014/5/19) , StreetInsider

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