InterDigital Gets Setback in Samsung Lawsuit

InterDigital has had a setback in its bid to block the import of Samsung mobile phones into the USA while it argues a legal patent lawsuit against the company. Evidentiary hearing in the United States International Trade Commission (USITC) investigation started yesterday, where the company tried to argue that Samsung has violated laws by engaging in unfair trade practices by selling for importation, importing into the United States, and selling after importation certain 3G handsets and components that infringe five of InterDigital's patents.

As anticipated, Samsung argued that no exclusion order should be entered against Samsung's 3G WCDMA handsets or components and the Commission Staff agreed that the order should not be applied. The Staff recommendation is not binding on either the Administrative Law Judge (ALJ) assigned to the investigation or on the USITC. Typically, the ALJ's final determination does not fully align with that of the Staff. In this case, as in other cases, the Staff position on certain key issues has not been adopted by the ALJ and the USITC

"We strongly believe we will demonstrate our case before the ALJ and the USITC and secure the appropriate relief against Samsung," commented Lawrence F. Shay, InterDigital's President of Patent Licensing. "We are confident that a thorough and independent review of the facts will support our views and we believe that our position is consistent with the facts discovered in the case."

Under the current schedule, the evidentiary hearing is expected to end on July 15, 2008. The Administrative Law Judge's final initial determination in the investigation is scheduled to be filed no later than November 25, 2008, and the target date for the Commission to render a final determination is set for March 25, 2009.

In Nov 2006, InterDigital was been awarded around US$150 million in a separate legal dispute with Samsung Electronics.

Updated 10th July - clarified initial statement on legal ban

Posted to the site on 9th July 2008