InterDigital Inc (IDCC)

[spencer]

http://biz.yahoo.com/ap/080324/interdigital_nokia.html?.v=1

InterDigital, Nokia in Talks on Patent
Monday March 24, 10:46 am ET
By Adam Schreck, AP Business Writer
InterDigital and Nokia Say They Are in Talks Over Disputed 3G Cell Phone Technology Patent

NEW YORK (AP) -- Wireless technology developer InterDigital Inc. disclosed Monday that it is in talks with Nokia Corp. aimed at settling the companies' ongoing patent dispute over third-generation cell-phone technology.

Investors cheered the news. InterDigital shares jumped more than 15 percent in early trading.

"Yes, we are in indeed in talks," Nokia spokeswoman Laurie Armstrong said, when reached for comment. She declined to provide additional details on the negotiations.

The case centers on the question of whether Nokia has a license to use InterDigital's patented technology; Nokia contends that it does, but InterDigital believes otherwise.

On Friday, the U.S. District Court for the Southern District of New York ordered the two sides to begin arbitration over the issue, according to a filing with the Securities and Exchange Commission by InterDigital.

The companies "have made substantial progress towards resolution of all disputes between them," King of Prussia, Pa.-based InterDigital added in the filing.

InterDigital filed complaints with the U.S. International Trade Commission and the U.S. District Court for the District of Delaware last year alleging that the Finnish cell-phone maker engaged in unfair trade practices by infringing on two InterDigital patents. The complaint sought to bar entry into the U.S. of the Nokia phones in question.

In December, the district court in New York confirmed an earlier arbitration award between InterDigital and Samsung Electronics Co. in a separate licensing case. Samsung had challenged a ruling requiring it to pay $134 million plus interest in past royalties, prompting InterDigital to ask the court to enforce the payments.

InterDigital said Monday the court order involving Nokia has no effect on its dispute with Samsung. A hearing involving that company is scheduled for April 21.

InterDigital shares rose $3.41, or 17.5 percent, to $22.87 in morning trading.