InterDigital Seeks Arbitration Award From Nokia

WASHINGTON -(Dow Jones)- Interdigital Communications Corp. disclosed Tuesday it will utilize a dispute settlement process under agreements with cell phone manufacturer Nokia to recover an arbitration award and interest from Nokia.

In addition, the company said in a filing with the Securities and Exchange Commission that it is seeking to resolve issues regarding Nokia's failure to submit royalty reports and refusal to permit an audit of its books and records to determine amounts dues.

According to the company, the dispute settlement process will establish a timetable for discussing these issues, senior representative meetings and any future initiation of arbitration if necessary.

On July 1, an arbitration panel ruled Nokia should pay the company between $232 million and $252 million in royalty obligations. However, Nokia contested the ruling, and filed a motion to stay the award. A federal appeals court later ruled in favor of Interdigital Communications.

As reported, Interdigital and Nokia have been involved in ongoing arbitration over royalty obligations that are part of a patent license agreement that Interdigital made with Ericsson and its spinoff, Sony Ericsson.

Separately, Interdigital Communications said that on Dec. 21 the Delaware District Court granted the company's motion to dismiss all of Nokia's declaratory judgment claims due to lack of jurisdiction. However, the district court didn't dismiss Nokia's claims regarding violations of the Lanham Act.

Nokia had filed a compliant in the district court against Interdigital Communications over a patent related to third-generation, or 3G, mobile-phone technology, Interdigital Communications said.

Nokia had sought declaratory judgments of patent invalidity and non-infringement and violations of the Lanham Act relating to the technology.

As reported earlier, the arbitration involving both parties doesn't pertain to 3G products.

Interdigital Communications develops technologies for the wireless communications industry.

-By Kristina Henderson, Dow Jones Newswires; 202-862-1344; kristina.henderson@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 27th December 2005