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Liberty Media (LMCA) received good news today relating to its ongoing legal battle with Qualcomm (QCOM), Ericsson (ERICB), and Alcatel Lucent (ALUA) regarding one of its companies, TruePosition. U.S. District Judge Robert Kelly ruled that the contention of a conspiracy to block TruePosition was plausible when viewed as a whole.

TruePosition has technology that helps authorities locate cell phone users who dial 911 in the event of an emergency, and the promising technology is vying for inclusion into the 4GLTE networks that more and more cell phones are utilizing. According to TruePosition, some of the big players in the cell phone market have hijacked the organizations that set mobile standards and have locked TruePosition out of the market.

The legal struggle has been going on for a year, and in January of this year TruePosition was dealt a loss when the judge dismissed the suit but allowed for an amended complaint to be filed. The amended complaint is what Judge Kelly has ruled can proceed. The judge stated that TruePosition had not shown direct evidence of an agreement between the companies accused of conspiring to exclude TruePosition, but that adequate circumstantial evidence existed.

The stakes are high for TruePosition, but the risk of not getting a favorable decision is also high. Proving a conspiracy on circumstantial evidence can be a daunting task, but Liberty has had some substantial legal victories in the past -- including winning nearly $1 billion against Vivendi in a decision earlier this year.

In the overall scheme of what Liberty Media is, TruePosition is a small part of the pie. The company has a massive stake in Sirius XM (SIRI) and has applied for de jure control of the satellite radio provider with the FCC.

Source: Liberty Media Lawsuit Can Proceed