U.S. Court of Appeals Remands Action for Further Proceedings Before the Commission

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)-- InterDigital, Inc. (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 Commissions (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 InterDigitals patents. Those erroneous interpretations, which had led to the Commissions 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 InterDigitals interpretation of the claim terms at issue and remanded the case back to the Commission for further proceedings. In addition, the Federal Circuit rejected Nokias argument that InterDigital did not satisfy the domestic industry requirement, which is required to obtain relief from the Commission.

We are pleased with the Courts decision, which we believe confirms the strength of InterDigitals 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 InterDigitals 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. Todays 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 Circuits 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 ALJs enforceability determination and reserved final judgment on patent validity. InterDigital believes that the Federal Circuits action should not substantively affect the Chief ALJs 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 Nokias 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 Nokias 3G WCDMA handsets and components that infringe InterDigitals patents, and also barring Nokia from selling such devices already in the United States.

About InterDigital^®

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.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit: www.interdigital.com.

Forward-Looking Statements

This press release contains forward-looking statements regarding our current beliefs, plans and expectations with respect to, among other things, (i) our belief that the Federal Circuits decision confirms the strength of InterDigitals wireless research contributions and the applicability of our patents to 3G technology; (ii) our stated goal of achieving $800 million in sustainable annual revenue from licensing in the next three to five years; (iii) our plans upon any remand to the Commission; (iv) our belief that the Federal Circuits action should not substantively affect the Chief ALJs finding that the patents are valid; (v) our beliefs regarding Nokias arguments during any remand proceeding; and (iv) our beliefs regarding the outcome of, and any relief to be granted during, any remand proceeding. Words such as believes, will, goal, should or similar expressions are intended to identify such forward-looking statements.

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, but not limited to, those identified in this press release as well as (i) the actual outcome of any future related rehearing, remand or appeal proceeding; (ii) unanticipated delays, difficulties or acceleration in the execution of patent license agreements; (iii) our ability to leverage our strategic relationships and secure new patent license agreements on acceptable terms; (iv) the failure of the markets for our technologies to materialize to the extent or at the rate that we expect; and (v) changes in the companys business or litigation strategy. We undertake no duty to update publicly any forward-looking statements, 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, Inc.
Media Contact:
Patrick Van de Wille, +1 858-210-4814
patrick.vandewille@interdigital.com
or
Investor Contact:
Janet Point, +1 610-878-7800
janet.point@interdigital.com

Source: InterDigital, Inc.

Copyright Business Wire 2012