Microsoft Wins Patent Dispute with InterDigital, Saves Lumia Business

Strategic Insights -

A US International Trade Commission (ITC) ruling on August 28 has favored Microsoft in its long-running patent-infringement dispute with InterDigital, a company that had accused Nokia, now owned by Microsoft, of patent infringement. The dispute began in 2007 when InterDigital sued Nokia over two standard essential patents for 3G technology. A US trade judge had previously ruled in favor of InterDigital, but the ITC has now overturned that decision, finding that InterDigital's patents were not infringed upon by Microsoft. This ruling saves Microsoft from a potential US import ban on its Nokia Lumia handsets, which is significant given the company's plans to announce new Lumia handsets in October.

Key Takeaways:

  • The US International Trade Commission (ITC) has sided with Microsoft in a patent-infringement dispute with InterDigital, overturning a previous ruling by a US trade judge.
  • The dispute began in 2007 when InterDigital sued Nokia, now owned by Microsoft, over two standard essential patents for 3G technology.
  • InterDigital's patents were found not to have been infringed upon by Microsoft in the ITC's August 28 ruling.
  • The ruling saves Microsoft from a potential US import ban on its Nokia Lumia handsets, which would have been a significant setback to its mobile handset business.
  • InterDigital CEO William J. Merritt described the ITC's ruling as "disappointing" and stated that it will have a limited impact on the company's going-forward business.
  • The decline of the Nokia mobile device business under Microsoft's control and its limited market position were mentioned as factors in InterDigital's limited impact assessment.
  • Microsoft is expected to announce new Lumia handsets in October, and the company's plans for these handsets were not explicitly mentioned in the source.

Statistics:

  • The patent-infraction dispute began in 2007.
  • 2 standard essential patents for 3G technology were at the center of the dispute.
  • InterDigital's patents were found not to have been infringed upon by Microsoft in the ITC's August 28 ruling.
  • 0 - the potential US import ban on Lumia handsets that Microsoft avoided due to the ITC's ruling.
  • October - the expected month when Microsoft will announce new Lumia handsets.

Sources:

  • G. D. Technologies (2015)
  • Contify.com - Technology (http://uncovercalifornia.com/business/technology)