InterDigital Inc (IDCC)

[rmarchma]

Beamer re arbitration panel looking at patent validity

I do not think that patent validity was an issue that the arbitration panel considered. An excerpt from IDCC's 8-k filing on June 10, 2004 stated the following:

Item 5. Other Events and Required FD Disclosure.

Nokia originally made claims in the Nokia arbitration requesting that the arbitration panel make specific findings of invalidity and/or non-infringement of ITC patents (some of which were involved in the Ericsson litigation). Nokia subsequently withdrew such claims. Nokia continues to maintain in the Nokia arbitration, however, that both the validity and Nokia’s infringement of the ITC patents (including patents involved in the Ericsson litigation) are factors the arbitration panel should consider in determining Nokia’s royalty liability under the patent license agreement. The Company continues to assert in the Nokia arbitration that issues of patent validity and infringement are not relevant to the arbitrable royalty dispute. The Company intends to vigorously contest any Nokia position to the contrary in the arbitration.

(Additional Note: Several days after this particular 8-K filing, Nokia filed its lawsuit in the UK re patent validity on three of IDCC's 2G patents. I think Nokia was mad that the arbitration panel evidently decided not consider patent validity in its deliberations, and filed the UK lawsuit).