Administrative Law Judge in ITC Investigation Issues Initial Determination Granting LG's Motion to Terminate Investigation as to LG
Decision Based on Potential Arbitrability of Alleged License
Defense Limited to LG And Does Not Affect Other Respondents
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--
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.
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements include information regarding InterDigital's
current beliefs, plans and expectations, including with respect to
InterDigital's plans to petition the Commission to review and reverse
the decision, the belief that LG's claim is without any merit and it is
contrary to their actions to date and the belief that InterDigital
eventually will obtain a favorable outcome in its dispute with LG.
Forward-looking statements are subject to risks and uncertainties.
Actual outcomes could differ materially from those expressed in or
anticipated by such forward-looking statements due to a variety of
factors, including, without limitation, changes in the company's
litigation strategy and the final outcome of any litigation or other
proceedings. We undertake no duty to update publicly any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as may be required by applicable law, regulation or
other competent legal authority.
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
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
Patrick Van de Wille,
Janet Point, +1 610-878-7866
Source: InterDigital, Inc.
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