U.S. Court of Appeals Remands Action for Further Proceedings Before the Commission
KING OF PRUSSIA, Pa.--August 1st, 2012-- InterDigital, Inc. (NASDAQ: IDCC) today announced that it has prevailed in a key appeal against Nokia in the U.S. Court of Appeals for the Federal Circuit. The appeal related to the U.S. International Trade Commission's ("Commission") 2009 decision in Investigation No. 337-TA-613 initiated by InterDigital involving Nokia 3G WCDMA handsets and other products. The Federal Circuit held that the Commission had erred in interpreting certain claim terms in InterDigital's patents. Those erroneous interpretations, which had led to the Commission's finding of no infringement and therefore no violation as to the two patents that were the subject of the appeal, were reversed. The Federal Circuit adopted InterDigital's interpretation of the claim terms at issue and remanded the case back to the Commission for further proceedings. In addition, the Federal Circuit rejected Nokia's argument that InterDigital did not satisfy the domestic industry requirement, which is required to obtain relief from the Commission.
"We are pleased with the Court's decision, which we believe confirms the strength of InterDigital's wireless research contributions and the applicability of our patents to 3G technology," said William J. Merritt, President and Chief Executive Officer of InterDigital. "This ruling represents a significant step towards our stated goal of achieving $800 million in sustainable annual revenue from licensing in the next three to five years. Technologically, it validates InterDigital's role at the heart of the future of wireless technology. From a business perspective, it underscores the strength of our licensing model and practices, and our continued focus on creating shareholder value as the market transitions to LTE and beyond. Through the efforts of our wireless research staff and our work with standards bodies and various industry partners, InterDigital has long been a key player in helping to drive future wireless innovation on an industry-wide basis. Today's decision is a continued validation of our research effort."
By rule, Nokia and the Commission have 45 days to petition for rehearing of the Federal Circuit's decision and may petition the U.S. Supreme Court for a writ of certiorari within 90 days after entry of the judgment or a request for rehearing is denied, whichever is later. After the time period for petitioning for rehearing passes or the Federal Circuit denies any such petition, the Federal Circuit will issue its mandate remanding the case for further proceedings by the Commission.
On remand to the Commission, InterDigital will seek an exclusion order barring entry into the United States of all infringing Nokia products employing 3G WCDMA technology. The former Chief Administrative Law Judge ("Chief ALJ") previously found that the two InterDigital patents at issue in the appeal were valid and enforceable. The Commission adopted the Chief ALJ's enforceability determination and reserved final judgment on patent validity. InterDigital believes that the Federal Circuit's action should not substantively affect the Chief ALJ's finding that the patents are valid. Although Nokia may attempt to pursue both invalidity and noninfringement arguments before the Commission during a remand proceeding, InterDigital believes that those arguments lack merit and that the Commission should confirm infringement by Nokia's 3G WCDMA products.
While the exact timeline and procedure for the remand proceedings have not yet been set by the Commission, InterDigital believes that the remand will lead to an exclusion order barring Nokia from selling for importation, importing, or selling after importation Nokia's 3G WCDMA handsets and components that infringe InterDigital's patents, and also barring Nokia from selling such devices already in the United States.
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.