Nokia loses patent dispute

InterDigital Communications Corporation a leading designer, developer and provider of wireless technology and product platforms, today announced that the federal district court judge presiding in the enforcement proceeding between InterDigital and Nokia Corporation (Nokia) in the United States District Court for the Southern District of New York confirmed in its entirety the Final Award rendered in June 2005 by the Arbitral Tribunal operating under the auspices of International Court of Arbitration of the International Chamber of Commerce (ICC).

"I am pleased with today's court decision," commented William J. Merritt, President and Chief Executive Officer of InterDigital. "We have always believed that any challenge to the Final Award would ultimately fail. In rejecting all of Nokia's arguments, the federal court confirmed our belief. With yet another legal challenge dismissed, we are hopeful that Nokia will finally comply with its signed license agreement with InterDigital. If not, we will continue to pursue all legal remedies to secure payment. In that vein, as we announced yesterday, we have taken action to utilize the contractual dispute resolution process with Nokia in order to accelerate the resolution of any outstanding issues that Nokia might allege. We remain confident that Nokia will pay the amounts due, either of its own accord or by court order."

In June 2005, the Arbitral Tribunal delivered its Final Award in the arbitration proceeding between InterDigital Communications Corporation, InterDigital Technology Corporation (ITC), one of the company's wholly-owned subsidiaries, and Nokia. The Tribunal established royalty rates which are applicable to Nokia's sales of covered products for the period beginning January 1, 2002 through December 31, 2006 and reflect Nokia's leading market position. Based on the royalty rates established by the Tribunal at the time of the Final Award, InterDigital estimated that Nokia's royalty obligations for covered infrastructure and handset sales from January 1, 2002 through December 31, 2006 would be in the range of approximately $232 million to $252 million. The above amounts are exclusive of awarded interest, net of any applicable contractual discount and based on Nokia achieving sales volume that entitles Nokia to obtain the lowest applicable royalty rate. On July 1, 2005, InterDigital initiated the enforcement action decided today in order to convert the Final Award into a court judgment which would allow InterDigital, if necessary, to compel compliance with the Final Award. Nokia failed to comply with the terms of the Final Award and instead sought to have the Award vacated. www.interdigital.com