InterDigital Communications Inc. et al v. ZTE Corporation et al DC CAFC

The Patent Trial and Appeal Board (PTAB) saw activity in a variety of notable campaigns throughout February 2018, with petitions for inter partes review (IPR) filed against publicly traded Quarterhill Inc. as well as Fundamental Innovation Systems International LLC, Intellectual Ventures LLC, Realtime Data LLC, and Uniloc Corporation Pty. Limited. The Board also instituted trial in February for IPRs against General Patent Corporation, Oyster Optics, LLC, and Uniloc. In addition, the PTAB issued final decisions throughout February in IPRs against a range of different patent owners, including publicly traded NPEs (Acacia Research Corporation; InterDigital, Inc.; and VirnetX Inc.), an individual inventor (Daniel L. Flamm), and privately held plaintiffs (ChanBond, LLC; Makor Issues & Rights Ltd.; Papst Licensing GmbH & Company Kg; and Personalized Media Communications, LLC).

The Federal Circuit has affirmed a Delaware jury’s October 2014 infringement verdict for InterDigital, Inc. in the NPE’s case against ZTE (1:13-cv-00009). In a decision issued on November 3, the court upheld District Judge Richard G. Andrews’s post-trial ruling that the jury’s finding of infringement as to three wireless communications patents had been properly supported by the evidence, also affirming Judge Andrews’s construction of a key claim term (2016-2362). That verdict issued in the first of two trials in the same lawsuit, the second of which culminated in a finding of noninfringement for ZTE as to a fourth patent in April 2015.

The second trial stemming from InterDigital’s 2013 infringement suit against ZTE wrapped up last week with a judgment in favor of the device maker (1:13cv00009). Following several hours of deliberation, an eight-person Delaware jury found that ZTE’s accused smartphones do not infringe a patent related to a wireless communication system (7,941,151). Nor has ZTE induced others to infringe any of the asserted claims of the patent (claims 2, 4, 5, and 6), according to the jury’s verdict.

InterDigital filed four separate suits against Huawei, Nokia, Samsung, and ZTE alleging that the defendants’ mobile phones, USB sticks, mobile hotspots, laptops and tablets infringe seven patents related to wireless devices with 3G and 4G capabilities (7,286,847; 7,190,966; 7,941,151; 8,009,636; 7,706,830; 7,616,970; 7,502,406).  InterDigital has also filed a concurrent suit with the International Trade Commission against all four defendants asking for a ban on imports of certain handset products the defendants make. Since March 2007, InterDigital has filed three prior suits, including a prior ITC complaint against these same defendants, asserting different sets of patents. The company holds over 1,500 US patents and claims on its website to have license agreements with almost 40 manufacturers of wireless equipment, including Apple, Ericsson, HTC, LG,NEC, Nokia, RIM, Samsung, Sharp, and Sony-Ericsson.  In July 2011, InterDigital issued a press release stating that it was exploring “potential strategic alternatives for the company, which may include a sale.” Bloomberg has additionally reported that Apple and Google are in discussions with the company.  1/2, District of Delaware, 1:2013cv00008; 1:2013cv00009; 1:2013cv00010; 1:2013cv00011.