InterDigital Settles Mobile Phone Patent Dispute with Samsung

InterDigital says that it has settled an ongoing patent dispute with Samsung - and entered into a binding term sheet with the company covering SamsungÃ's sale of 2G products, as well as the 3G patent licensing disputes for SamsungÃ's sales of products through 2012.

Under the terms of the term sheet, InterDigital agreed to grant Samsung a royalty-bearing license covering SamsungÃ's sale of all 3G products (including products built under both the WCDMA and cdma2000 standards and their related extensions) through 2012. The agreement also ended the payment disputes regarding SamsungÃ's royalty obligations for sales of 2G products.

Under the terms of the term sheet, Samsung has approximately 45 days to elect between two defined payment options, and the term sheet contemplates the parties will enter into agreements incorporating the terms of the term sheet. Subject to SamsungÃ's selection of a payment option and payment of the first installment of payments due in early 2009, the parties will move to end all litigations and arbitration proceedings ongoing between them.

"I am extremely pleased that we have reached a favorable agreement with Samsung to end this longstanding dispute," commented William J. Merritt, President and Chief Executive Officer of InterDigital. "The agreement is consistent with our long term strategic plan, and reflects well on the strength of our patent portfolio and our ability to design flexible deal structures," continued Mr. Merritt.

Posted to the site on 25th November 2008