Tuesday, 1 September 2015

InterDigital stock dropped 3% has Microsoft wins

The International Trade Commission has ruled that Microsoft did not
infringe on patents by InterDigital. The case is almost eight years old, and is
interesting considering the fact that the patents in question are considered
important to how a smartphone functions.
US ITC Ruling Against InterDigital In 8-Year-Old Microsoft/
Nokia Patent Infringement Case.
Microsoft has now avoided a potentially huge setback to its mobile handset
busines expansion, after the International Trade Commission decided not to block
imports of its devices as part of a long-running patent dispute with
InterDigital.
The decision on Aug. 28 turned back a ruling in April that deemed that
Microsoft had in fact infringed upon two InterDigital patents, a ruling that
would have resulted in a U.S. import ban on Microsoft-made Nokia phones.
The decision is certainly good news for Microsoft, which has been
struggling in its mobile business against the likes of Apple and Google for a
number of years. Of course, the decision isn't so good for InterDigital.
"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. Merritt, CEO of InterDigital, in a statement. "InterDigital will
continue to seek compensation for past infringement and the further
unlicensed use of our contributions to wireless mobile communication
standards."
Following the decision, InterDigital's stock was down 3 percent. The issue
is amplified because of the fact that the patents owned by InterDigital are
considered essential to how smartphones work. InterDigital says that it will
continue to seek compensation for past infringements.

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