Nokia requests InterDigital papers on Ericsson case
Tuesday July 22, 5:02 pm ET
biz.yahoo.com
NEW YORK, July 22 (Reuters) - Shares of InterDigital Communications Corp. (NasdaqNM:IDCC - News) fell sharply on Tuesday after it said mobile phone maker Nokia (NOK1V.HE)(NYSE:NOK - News) is seeking to stall arbitration related to a royalty payment dispute between the companies until it sees papers related to an earlier case.
Wireless technology company InterDigital -- which reached a settlement with another phone maker, Sweden's Ericsson (Stockholm:ERICb.ST - News), on a license dispute in March -- saw its shares close down $5.83, or nearly 25 percent, at $17.71 on the Nasdaq after it issued the news.
King Of Prussia, Pennsylvania-based InterDigital said Nokia's request relates to an InterDigital claim its agreement with Ericsson and joint venture Sony Ericsson defines how Nokia, the Finnish world No. 1 mobile phone maker, should pay royalties on mobile phone technology.
Nokia is seeking a determination that it has no royalty obligations to InterDigital based on its licensing agreement with Ericsson, InterDigital said.
The Finnish cell phone maker is also asking InterDigital for documents related to previous litigation and negotiations and wants to stall arbitration until it sees the documents, InterDigital said.
Nokia intends to file an action in U.S. federal court requesting access to the documents related to the Ericsson case previously sealed by the court, InterDigital said.
InterDigital, which has 30 days to respond to Nokia's request for documents, said it intends to file a counterclaim seeking royalties from Nokia.
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