Nokia Files Suit Vs InterDigital Communications, Unit Over Patent"

WASHINGTON -(Dow Jones)- InterDigital Communications Corp. (IDCC) said Thursday that Nokia Corp. (NOK) recently filed a complaint in the U.S. District Court for the District of Delaware against it and its InterDigital Technology unit over a patent related to third-generation, or 3G, mobile-phone technology.

The wireless technology developer said in a document filed with the Securities and Exchange Commission that Nokia is seeking declaratory judgments of patent invalidity and noninfringement and violations of the Lanham Act relating to the technology.

As reported, the parties have been involved in ongoing arbitration over royalty obligations that are part of a patent license agreement that InterDigital Communications made with L.M. Ericsson Telephone Co. (ERICY) and its spinoff, Sony Ericsson.

Since reaching the Ericsson pact, InterDigital has been in royalty talks with Nokia and Samsung Electronics Co. (028050.SE) on sales of 2G GSM/TDMA and 2.5G GSM/GPRS/EDGE/TDMA products under their existing patent license agreements.

InterDigital previously estimated that Nokia and Samsung could owe $180 million to $220 million combined for 2003 and 2004.

In the Nokia case, Nokia has agreed that it owes royalties, but disagrees on the specifics of those obligations. Nokia has asked the International Court of Arbitration of the International Chamber of Commerce to determine that it has no royalty obligations to the InterDigital unit based on the Ericsson and Sony Ericsson licenses.

The lawsuit recently filed by Nokia specifically states that the current arbitration involving the parties doesn't involve 3G products, according to the filing.

InterDigital said it is reviewing the complaint and plans to take all necessary steps to defend its position.

-By Chad Clinton, Dow Jones Newswires; 202-862-1349; chad.clinton@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 13th January 2005