Microsoft Files Antitrust Suit Against InterDigital in Patent Feud

InterDigital Inc has violated U.S. antitrust law by failing to keep its promise to fairly license its technology considered essential to mobile phone communications, Microsoft Corp said.


The complaint against InterDigital, filed in federal court in Wilmington, Delaware, deepens a long-standing fight over patent licensing between the two companies. It comes as the U.S. International Trade Commission is set to rule this month on whether Microsoft smartphones should be banned from being imported into the United States for infringing two of InterDigital's patents.


The lawsuit concerns patents considered to be critical to technologies that may be widely adopted in an industry. Owners of these kinds of patents typically commit to offering them to competitors at a reasonable rate and on fair terms.


Microsoft alleged InterDigital's "abusive licensing practices" over its patents that are essential for companies to make cellular devices violate federal anti-monopoly laws. InterDigital "falsely promised" to license these patents on reasonable terms so they would be accepted as industry standards but then charged exorbitant rates, Microsoft said in the complaint.


Microsoft added that because of InterDigital's "monopolistic conduct," the court should triple any damages it awards, and order InterDigital to stop enforcing its patents.