While Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) no longer makes handsets having shed that division in a sale to Microsoft Corporation (NASDAQ:MSFT), “the sins of the father” still needed their day in court. Those sins were judged to not be sins at all by U.S. International Trade Commission Judge Theodore Essex in a notice posted on the agency’s website.
No full ruling
The full findings by the Honorable Essex are not yet up and not expected before next week, but his initial ruling saw an immediate drop in InterDigital, Inc. (NASDAQ:IDCC)’s stock following the posting.
At the risk of harshness, this is the third time that InterDigital has filed at the Washington-based ITC over the latest generation of mobile phones since 2007
The decision “does not align with the validation of our portfolio and licensing practices that is reflected in our numerous agreements with major wireless companies worldwide,” InterDigital Chief Executive Officer William Merritt said in a statement.
Investors didn’t shy from selling off or shorting InterDigital, Inc. (NASDAQ:IDCC) when the judge took to the Internet. Shares dropped 6.6% immediately on volume that represents seven times the three-month daily volume average.
Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) was accused of infringing on a patent that improved transmissions while ZTE, the second defendant, is accused of myriad infringements.
That’s not to say that InterDigital, Inc. (NASDAQ:IDCC) are without merit in their cases, they have settled with a number of companies in recent years for large sums of money.
The judge’s full ruling will go a long ways to determining the future of mobile phone patents and is eagerly anticipated by many analysts, investors, and manufacturers.