Wireless technology company InterDigital Communications Corp. announced it has been awarded $134 million by an arbitrator in a decade-long royalty dispute with South Korean-based Samsung Electronics Co. Ltd.

The arbitration award for InterDigital (King of Prussia, Pa.) covers past royalties plus interest on Samsung’s sale of single mode 2G GSM/TDMA and 2.5G GSM/GPRS/EDGE terminal units through 2005. The arbitrator said Samsung would have to pay InterDigital $17 to $21 million to cover royalties for the first half of 2006.

In a separate matter, the arbitrator determined that Samsung has not obtained the broader CDMA and 3G patent license rights in the Nokia agreement with InterDigital.

In Feb. 1996, Samsung entered agreements with InterDigital which covered both technology development and patent licenses. As part of the agreements, Samsung paid approximately $35 million up front to InterDigital.

As part of an arbitration proceeding concluded in 2002, Samsung elected, pursuant to its most favored licensee clause, to base its royalty payments commencing Jan. 1, 2002 for TDMA-based wireless communication products on the terms of InterDigital’s patent license agreement with Nokia.

Subsequently, InterDigital and Ericsson and Sony Ericsson established the framework for Nokia’s royalty obligations for 2G GSM/TDMA and 2.5G GSM/GPRS/EDGE handset and infrastructure sales in March 2003.

Samsung disagreed with InterDigital’s interpretation of the impact of these patent licensing agreements and requested binding arbitration in Nov. 2003 to resolve the dispute.

Earlier this year, InterDigital agreed on a license deal with South Korea-based LG Electronics. Under that agreement, LG would pay InterDigital $285 million over a three-year period to use its 2G and 3G technologies. The amount includes royalties for technologies LG had used in the past.

Events and Courses on A Colleague writes “Diploma in International Commercial Arbitration: Singapore, 5 -13 January 2004 & Balliol College, Oxford 18 – 26 September 2004

This Diploma is considered the flagship of the Chartered Institute’s international arbitration training.
ADR/ODR
Launched by the Chartered Institute of Arbitrators in 1995 it has more than 200 diplomates in many countries including, Australia, New Zealand, Hong Kong, Singapore, Malaysia, Canada, the USA, Nigeria, France, Switzerland, Israel, Ireland, England and Scotland.

This is an extremely intensive course, covering topics from: the laws applicable in international commercial arbitration and arbitrability, to the jurisdiction, powers and obligations of an arbitrator; the roles of the tribunal and the parties and procedure for the arbitration.

The Course Director, Professor Phillip Capper, a partner with Lovells international law firm and former Chairman of the Faculty of Law, University of Oxford, will be assisted by practising international arbitrators and lawyers from around the world.
Courses in 2004 are planned to take place in Singapore from 5 until 13 January and in Balliol College, Oxford from 18 until 26 September.

Year 2004