ITC rules in favour of Microsoft in patent case

Microsoft has been spared a significant blow ahead of the Windows 10 Mobile OS arrival on the scene, with the International Trade Commission (ITC) ruling in its favour of it in a patent case.

An adverse ruling would have barred Microsfoft from importing its next batch of Lumia smartphones.

However, the US International Trade Commission (ITC) ruled that Microsoft did not infringe on InterDigital's patents, which saved it from a potential import ban that could affect its Lumia smartphones.

It was not Microsoft that had actually been sued by InterDigital initially, it was Nokia, which back in 2007 was still an independent company but later went on to manufacture Windows Phone devices.

Nokia was then acquired (partly) by Microsoft. InterDigital's issue with Nokia, along with ZTE and Huawei was that it infringed on two of its standard essential patents for 3G technology.

"Standard essential" meant that the patent was absolutely critical for compliance with a technical standard.

A US trial judge ruled in favour of InterDigital in April this year, but apart from being found more than just guilty, which would have in the normal course resulted in damages and fines, the judge also recommended an import ban, saying that such an action would not be against public interest.

Howevr, this ruling was subequetly overturned  by the ITC, which decided not to enforce the decision.

In a statement, InterDigital chief William Merritt termed the decision as very disappointing, but would have limited impact in the backdrop of the declining Nokia mobile device business under Microsoft and its limited market position.

Microsoft claimed in the suit that InterDigital was breaching the US 1890 Sherman Antitrust Act by overcharging, typing in useless patents to essential ones, not making any products and discriminating against MS as it was a smaller partner in the bigger industry.

The two companies are locked in tussle over the amount InterDigital could charge for licensing its patents that were considered as essential for cellphone technology.

Wilmington, Delaware-based InterDigital first accused Nokia in 2007 of infringing its know-how for optimising a cellphone's energy to hook up with a community.

In addition to blocking the call for an import ban, the ITC ruled that Microsoft did not infringe patents relating to the way mobiles made calls.

In February this year, in a bid to push its Windows Phone operating system to users in Europe, Asia, the Middle East and Africa, Microsoft unveiled Lumia 435 and Lumia 532 handsets made by the Finnish-based Nokia, which it acquired last year. (See: Microsoft unveils Lumia 435 and Lumia 532 handsets).