Evidentiary Hearing Commences In ITC Investigation Of InterDigital Complaint Against Huawei, Nokia And ZTE

InterDigital, Inc. (NASDAQ: IDCC), a wireless research and development company, announced today that the evidentiary hearing in the United States International Trade Commission (“ITC” or the “Commission”) investigation of the company’s complaint against Huawei Technologies Co., Ltd., FutureWei Technologies, Inc. d/b/a Huawei Technologies (USA) and Huawei Device USA, Inc., Nokia Corporation and Nokia Inc. and ZTE Corporation and ZTE (USA) Inc. (collectively, "Respondents") involving certain 3G wireless devices has commenced.

Unlike prior cases involving InterDigital, the Office of Unfair Import Investigations Staff (the “Staff”) is not participating on all issues in the case, limiting its involvement to two patents from one patent family. On infringement and validity, in its pre-trial position the Staff did not support the company’s position on those two patents. Regarding domestic industry issues, the Staff raised questions as to whether the company had demonstrated an adequate connection between its licensing expenditures and these two patents to support the Commission’s domestic industry requirement. The Staff is not participating in the investigation as to the other five of the seven patents at issue and therefore has expressed no views at to those patents. As to the requirement that companies license standards-essential patents on a Fair, Reasonable and Non-Discriminatory (“FRAND”) basis, the Staff believes Respondents have not demonstrated that the company violated any of its FRAND commitments. The Staff’s recommendations are not binding on either the Administrative Law Judge overseeing the proceeding or the Commission. Typically, the Commission’s final determination does not fully align with the Staff’s pre-trial position.

“We look forward to the ITC’s examination of our complaint and are confident that the patents in this investigation give us a very strong case, including patents related to those in the company’s recent successful Federal Circuit appeal involving Nokia Corporation and Nokia Inc.,” said Lawrence F. Shay, President of InterDigital’s patent holding subsidiaries. “Also, our company has twice satisfied the domestic industry requirement in prior ITC cases involving some of the same patent families that are involved in this case. Overall, we believe our case is very strong and that we should prevail against the Respondents.”

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