Microsoft Corporation (MSFT) Dodges Bullet As US Trade Commission Clears Company Of Patent Infringement

The US Trade Commission has declined to implement an import ban on Microsoft’s mobile devices that was previously pushed as part of the company’s longstanding suit over patent infringement with InterDigital








Microsoft Corporation (NASDAQ:MSFT) dodged a bullet yesterday after the US International Trade Commission decided not to implement an import ban on the company as part of a long standing patent conflict with InterDigital, which had accused Microsoft of infringing on two of the latter’s wireless patents. Both parties seemingly have a disagreement over how much InterDigital should charge for its patents that are about basic technologies used in the cellphone industry.



It has been eight years since InterDigital first claimed that Nokia was wrongfully using its technology to ramp up a cellphone’s power for network connectivity. Earlier in April a US Trade judge had issued a ruling in favor of InterDigital and moved to block the import of Microsoft’s devices. The judge had noted that Microsoft was incorporating InterDigital’s technology without paying a license fee. The Commission’s decision on Friday however nullifies the import ban recommended earlier. It is quite odd for the Commission to issue such a ruling without issuing any judgment with regards to the issue of fair licensing.


A representative of Microsoft told Reuters that the company was thankful for the Trade Commission’s decision to disallow the ban on its products sought by InterDigital. Meanwhile InterDigital's Chief Executive Officer William Merritt expressed great disappointment over the Trade Commission’s decision. while adding that it would cause little impact on Microsoft given its already limited share in the smartphone market.

Microsoft’s mobile business has been struggling for quite some time now as Apple Inc.(NASDAQ:AAPL) and Samsung Group (OTCMKTS:SSNLF) gain increasing traction for their offerings in the smartphone business. Recent estimates show that Microsoft devices only account for 3% share in the global smartphone market. Back in July, Microsoft’s handset business went into a loss while incurring costs amounting to $7.5 billion. Shares of Microsoft closed up by 0.07% today at $43.93.