InterDigital Inc (IDCC)

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U.S. ITC terminates Microsoft patent infringement case filed by InterDigital Inc.

August 31 7:43 AM 2015 by MoneyTimes

U.S. International Trade Commission terminates the patent infringement case filed by the InterDigital Inc. against Microsoft Corporation. ITC is breaking off the import ban of Microsoft handsets.

The trade commission had deliberated that Microsoft did not infringe patents, this time, permitting importation of Microsoft devices. Apparently, InterDigital stock dropped by 3% after hours it was announced on Friday, cited on Reuters.


In 2007, InterDigital Inc. filed charges against Nokia with ITC case No. 337-613 for breaching patents over how Nokia connects to a network in making phone calls.


Considering as one of the directives in the industry, the U.S. trade judge, in April, ruled that Microsoft uses InterDigital's patents without paying a license fee to the company, halting imports of all Microsoft phones with 3G cellular technology.


For eight years, InterDigital Inc. battled in court, claiming royalties on Nokia which is now passed on to Microsoft when the software company acquired the Finnish multinational phone this year.


"[The] 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 reacted to a news report from Beta News.


Microsoft had lost about $7.5B last month, taking into account its venture of Nokia. Furthermore, Microsoft banks only 3% of the mobile phone sales in the local and international market, NDTV Gadgets disclosed the estimates.


On the contrary, Microsoft applauded the ITC's resolution. In a statement, Microsoft said, "We're grateful the Commission stopped InterDigital from trying to block our products. We'll continue to pursue our separate suit addressing InterDigital's unlawful conduct and abusive patent licensing scheme."


In line with the issue, Microsoft charged InterDigital in federal court this month for violating U.S. antitrust law. Microsoft argues about InterDigital's rate for charging license to its patents. The company from Delaware allegedly did not adhere to the reasonable terms implied in the licensing agreement.

http://www.vcpost.com/articles/87884/20150831/u-s-itc-terminates-microsoft-patent-infringement-case-filed-interdigital.htm