Decision Based on Potential Arbitrability of Alleged License Defense Limited to LG And Does Not Affect Other Respondents
KING OF PRUSSIA, Pa.-- June 5, 2012-- InterDigital, Inc. (NASDAQ: IDCC) announced that the Administrative Law Judge ("ALJ") overseeing the U.S. International Trade Commission ("ITC") investigation initiated by certain of the Company's wholly owned subsidiaries against LG Electronics in 2011 issued an initial determination granting LG's motion to terminate the investigation as to LG. The determination is based on the potential arbitrability of a claim by LG that LG is licensed under its expired patent license agreement between InterDigital and LG. The decision, limited to LG, does not affect other respondents in the ITC investigation and is not a ruling in favor of LG on the merits of LG's allegation of an existing license.
The ALJ's initial determination is a preliminary decision that must be adopted by the full Commission before it takes effect. The Commission has up to 45 days to do so and may take longer if it chooses to review the decision. InterDigital intends to petition the Commission to review and reverse the decision.
"We believe that LG's claim that they are entitled to arbitration based on a long-expired license agreement is without any merit and it is contrary to their actions to date, and we will petition the Commission to review the determination," said Lawrence Shay, President of InterDigital's patent holding subsidiaries. "Although we're disappointed with the delay with regard to LG that comes as a result of this ruling, we remain very confident that we eventually will obtain a favorable outcome in our dispute with LG."
On December 5, 2011, the ALJ granted the motion filed by InterDigital's wholly owned subsidiaries InterDigital Communications, LLC, InterDigital Technology Corporation and IPR Licensing, Inc. requesting that the ITC add LG Electronics, Inc., LG Electronics U.S.A. Inc., and LG Electronics Mobilecomm U.S.A., Inc. (collectively, "LG") to a previous complaint with the ITC involving Nokia Corporation and Nokia Inc. (collectively, "Nokia"), Huawei Technologies Co., Ltd., Huawei Device USA, Inc., and FutureWei Technologies, Inc. d/b/a Huawei Technologies (USA) (collectively, "Huawei") and ZTE Corporation and ZTE (USA) Inc. (collectively, "ZTE"). The complaint, as amended, alleged that the companies have engaged in unfair trade practices by making for importation into the United States, importing into the United States, and/or selling after importation into the United States, certain 3G wireless devices, including WCDMA and cdma2000® capable mobile phones, USB sticks, mobile hotspots, and tablets, and components of such devices that infringe eight of InterDigital's U.S. patents. In conjunction with the ITC filing, InterDigital filed a complaint in the United States District Court for the District of Delaware alleging that the four companies' 3G wireless devices infringe these same InterDigital patents. This action has been stayed pending the parallel proceedings in the ITC. On January 20, 2012, LG filed its motion to terminate the ITC investigation alleging there is an arbitrable dispute.
InterDigital develops fundamental wireless technologies that are at the core of mobile devices, networks, and services worldwide. We solve many of the industry's most critical and complex technical challenges, inventing solutions for more efficient broadband networks and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world's leading wireless companies.
For more information, visit: www.interdigital.com.