Microsoft Wins Patent Lawsuit Filed 8 Years Ago

31 Aug 2015 | Author: | No comments yet »

InterDigital Loses Trade Case Targeting Microsoft Phones.

Microsoft Corp avoided a potentially costly setback to its mobile phone business on Friday as the U.S. Wireless communications technology solutions provider InterDigital, Inc. (NASDAQ:IDCC) suffered a huge setback in its long drawn out patent battle with Microsoft Corporation (NASDAQ:MSFT). The decision rejected a ruling in April by a U.S. trade judge who found that Microsoft had infringed two InterDigital Inc wireless patents, and recommended an import ban. The Redmond, Washington-based company has captured just 3 percent of the smartphone market in the United States and globally, according to recent estimates.

In finding that there was no violation of InterDigital rights, the commission didn’t address the broader issue of whether InterDigital offered to license its patents on fair and reasonable terms. Wilmington, Delaware-based InterDigital first accused Nokia in 2007 of infringing its technology for optimizing a cellphone’s power to connect to a network. After reviewing that ruling, the commission said on Friday that Microsoft did not violate the patents, but it did not address the issue of fair licensing for essential patents. The shares ended at $49.46, down less than a percent, during regular trading hours. “Today’s 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,” said William J.

Earlier this month, Microsoft sued InterDigital in Delaware federal court, claiming InterDigital violated U.S. antitrust law by breaking promises to offer licenses on reasonable terms. Companies frequently sue both at the ITC, which has the authority to block the import of products that infringe a U.S. patent, and in district court to win monetary damages. It has split the technology industry, with InterDigital siding with Qualcomm Inc., which gets most of its revenue from licensing, as well as Nokia and Ericsson AB.

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