InterDigital Inc (IDCC)

[jeffree]

DJ newswire...


NEW YORK (Dow Jones)--Shares of InterDigital Inc. (IDCC) dropped as much as 29% earlier Monday after losing a key battle against Nokia Corp. (NOK) over mobile-phone technology patents. The wireless-technology developer filed a complaint with the International Trade Commission in August 2007, alleging Nokia engaged in unfair trade practices by selling certain 3G handsets and components that infringe four of InterDigital's U.S. patents. InterDigital said in a release late Friday that a chief administrative law judge found no violation of InterDigital's patents by Nokia, though the patents are "valid and enforceable." "We strongly disagree with the ALJ's determination with respect to infringement, and we will exercise our right to petition to the Commission for a review of the [initial determination]," said President and Chief Executive William J. Merritt. Nokia, meanwhile, said in a release it respects "valid and used" intellectual property rights. "We are willing to compensate other contributors with what is fair and reasonable for such IPR, however in the case of unrealistic and unwarranted demands, we are prepared to ensure through litigation that our rights are protected," said Ilkka Rahnasto, Nokia vice president of legal and intellectual property. "We believe this initial determination by the ITC combined with earlier U.K. court decisions provide a strong indication that the asserted value of InterDigital's 3G patent portfolio may have been over-estimated." A representative from InterDigital wasn't immediately available to comment further, but the company plans to hold a conference call at 2 p.m. EDT. In recent trading, InterDigital shares tumbled 25% to $22.24 after earlier falling as low as $20.86. Shares are down nearly 20% year-to-date. Nokia, meanwhile, slipped 3.9% to $12.52 amid broader market declines.