InterDigital shares plunge after ITC rules for Nokia in patent dispute

Ahead of the Bell: InterDigital shares plunge

NEW YORK — InterDigital Inc. shares dove in premarket trading Monday after a U.S. International Trade Commission judge offered an initial ruling in favor of handset maker Nokia Corp. in a patent dispute.

InterDigital, a wireless technology developer based in King of Prussia, Pa., shares plunged $8.08, or 27 percent, to $21.42.

Friday’s ruling found that Nokia had not violated four InterDigital’s patents in dispute. InterDigital filed a complaint two years ago with the ITC saying Finland’s Nokia was using its technology in handsets imported to the U.S.

The company said it disagrees with the ruling and will ask for a full review of the decision. A final decision would come Dec. 14 if the commission grants a review.

Boenning & Scattergood analyst Michael Ciarmoli pointed out one bright spot for InterDigital in a client note Monday: “The ITC concluded that (InterDigital’s) patents were valid,” even if they were not violated by Nokia.

“Essentially, the ITC ruling has not marginalized the value of (InterDigital’s) patent portfolio,” he added.

Still, while there may be a chance the two companies could reach a settlement, “Nokia now has all of the bargaining power,” Ciarmoli said.

Nokia shares dropped 50 cents, or 3.8 percent, to $12.53 ahead of regular trading.

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