European Commission ends InterDigital investigation
Antitrust regulators in Europe have ended an investigation into a complaint by Chinese phone maker Huawei about a US patent licensing company after their dispute was settled outside court.
In January this year, WIPR reported that Huawei had ended its patent battle with InterDigital and reached a settlement.
The dispute dates back to 2012, when Huawei accused InterDigital of demanding excessive royalties for its 3G wireless patents.
Huawei said InterDigital’s patents were standard-essential and that it had failed to fulfil its pledge to license them on fair and reasonable terms.
The Shenzhen-based company, China's largest maker of mobile phone network equipment, filed a complaint at the European Commission that year, demanding an investigation.
Despite the companies agreeing to settle, the EC can still pursue cases if it suspects anti-competitive practices or has gathered enough evidence.
But, in a statement to WIPR, Antoine Colombani, spokesman for competition policy at the EC, confirmed it had closed the investigation.
"The case, which was indeed not a formal investigation, has been closed after Huawei withdrew the complaint," Colombani said.
InterDigital, headquartered in Delaware, holds a portfolio of patents in high-speed wireless communications. Its revenue exceeded $325 million last year.
Had InterDigital been found guilty, it could have been fined 10 percent of its revenue.
InterDigital and Huawei did not respond to requests to comment on the end of the investigation but have previously told WIPR they were “pleased” to have settled with each other.
The settlement will be resolved through arbitration, which is expected to be finalised within a year.
Other defendants, including Nokia, have yet to reach a settlement with InterDigital over the use of the patents.
In a separate investigation, China’s National Development and Reform Commission (NDRC), a governmental body, has begun an investigation into InterDigital.
The investigation was launched in December last year after InterDigital filed a complaint at the US International Trade Commission, accusing Huawei of possibly violating Chinese anti-monopoly laws.
The NDRC has yet to announce whether it has reached any conclusions in its investigation.
