Microsoft escalates patent dispute with InterDigital

Microsoft has just filed a formal lawsuit against InterDigital, claiming the wireless manufacturer violated a pledge to fairly license any fundamental mobile phone technology it used. By filing the suit, the tech giant hopes to tone down the amount of royalties it needs to pay InterDigital for patents it used in its 3G and 4G devices.

According to an interview with Reuters, Microsoft says that InterDigital is "engaged in an unlawful scheme to acquire and exploit monopoly power over technology necessary for companies to make 3G and 4G cellular devices."

Microsoft's attorneys are arguing that since the patented technology in question is essential to the point of being an industry standard, it should only be allowed to demand reasonable royalties, a theoretical limit the tech giant believes the manufacturer as more than surpassed. 

This claim isn't that out of the ordinary: just last month, Microsoft won a lawsuit giving it a low licensing rate for use of Google and Motorola patents.

Disputes between Microsoft and InterDigital have been ongoing since 2007, when the latter company filed a suit against Nokia, which at the time was still the owner of Microsoft's handset division.

According to Microsoft's statement on the suit: "InterDigital falsely promised to license its patents on reasonable terms in order to get them accepted as industry standards, then used that status to charge exorbitant license rates. This violates its commitments, and hurts consumers and competition."

If you are in the middle of a copyright dispute, or if you think someone else is profiting from your own work, it is important to speak with a skilled business attorney. A lawyer can help protect your rights in case of litigation.

Categorised in: Intellectual Property Law

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