InterDigital Case Against ZTE, Huawei Gets Trade Agency Review
InterDigital Inc.’s patent- infringement complaint seeking to block imports of phones made by Nokia Oyj (NOK1V), ZTE Corp. (000063) and Huawei Technologies Co. will be investigated by the U.S. International Trade Commission.
InterDigital, owner of about 1,300 U.S. patents related to mobile phones, claims the companies are infringing seven patents related to so-called third-generation wireless technology. The ITC, which announced the investigation on its website today, typically takes 15 to 18 months to complete a review and can ban imports of products that it finds violate U.S. patents.
Huawei had challenged the July 26 complaint in an Aug. 5 filing, accusing InterDigital of bringing the case “purely for the purpose of inflating its value as it prepares to sell its IP assets.” King of Prussia, Pennsylvania-based InterDigital hired Evercore Partners Inc. and Barclays Capital in July to help explore a potential sale of its intellectual property to take advantage of increased demand for wireless patents.
InterDigital has said it filed the ITC complaint because Nokia, ZTE and Huawei refused to pay licensing fees. InterDigital already had a case against Espoo, Finland-based Nokia at the ITC that it lost, and is awaiting an appeals court ruling in that dispute.
A victory in the new case could result in a ban of phones, USB sticks, mobile hot spots and tablets made by the three companies. Huawei and ZTE are China’s two largest makers of phone equipment. Both are based in Shenzhen, China.
The case is In the Matter of Certain Wireless Devices with 3G Capabilities and Components Thereof, 337-800, U.S. International Trade Commission.
To contact the reporter on this story: Susan Decker in Washington at sdecker1@bloomberg.net.
To contact the editor responsible for this story: Allan Holmes at aholmes25@bloomberg.net
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