The U.S. International Trade Commission ruled in favor of Microsoft in an infringement case -- and some are disappointed.
Microsoft just got saved from a potentially huge dent in its mobile phone business.
The U.S. International Trade Commission has declined to block the import of Windows phone devices despite a patent dispute, ruling that the software giant didn’t infringe on copyrights, according to a Reuters report.
The decision overturns an April ruling by a U.S. trade judge, who determined that Microsoft had indeed infringed on two wireless patents owned by InterDigital Inc., which would have led to a ban of those phones being sold overseas.
Microsoft needed this win, as it is trying to compete against mobile phone giants like Apple and Samsung, owning just 3 percent of the smartphone market in the United States and the rest of the world.
The company took a $7.5 billion charge on its handset business that it bought from Nokia, resulting in a record quarterly loss last quarter for the company.
InterDigital’s Chief Executive Officer William Merritt said he was disappointed by the decision, but argued it would have limited impact because Microsoft doesn’t have much control of the market anyway. Microsoft, in turn, claimed InterDigital was trying to “block our products,” according to the report.
The stock for InterDigital tumbled 3 percent later on Friday. The Delaware-based company first started fighting Nokia back in 2007, accusing it of infringing on its technology, which optimizes the power of a cellphone to connect to a network. A U.S. trade judge in April finally ruled in InterDigital’s favor, saying that Microsoft should pay to license their patents. But the commission on Friday ruled that Microsoft hadn’t actually violated the patents.
InterDigital was founded back in 1972 and is responsible for developing wireless technologies for mobile devices and networks around the world. It is one of the leading wireless companies due to its licenses and strategic relationships.