SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
Current Report
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) March 29, 1995
INTERDIGITAL COMMUNICATIONS CORPORATION
(Exact name of issuer as specified in charter)
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<S> <C> <C>
PENNSYLVANIA 1-11152 23-1882087
(State or Other Jurisdiction Commission (I.R.S. Employer
of Incorporation or file number Identification
Organization) Number)
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Suite 105, 2200 Renaissance Boulevard,
King of Prussia, Pennsylvania 19406-2755
(Address of principal executive offices)
(610) 278-7800
(Registrant's telephone number, including area code)
Page 1 of 3 pages
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Item 5. Other Events.
In October 1993, Motorola, Inc. filed an action against
InterDigital Technology Corporation ("ITC"), an indirect 94% owned subsidiary
of InterDigital Communications Corporation (the "Company"), seeking the
court's declaration that Motorola's products do not infringe certain
ITC patents and that these patents are invalid and unenforceable. ITC filed
counterclaims seeking a jury's determination that in making, selling, or using
and/or in participating in the making, selling or using of digital wireless
telephone systems and/or related mobile stations, Motorola has infringed,
contributed to the infringement of and/or induced the infringement of certain
patents from ITC's patent portfolio. ITC also sought preliminary and permanent
injunctions against Motorola from further infringement and sought damages,
royalties, costs and attorneys' fees. A trial was held in United States
District Court for the District of Delaware (Civil Action No. 94-73 (D. Del)) on
the issue of validity and infringement of 24 patent claims involving four ITC
patents, U.S. Patent Nos. 4,675,863, 4,817,089, 5,119,375 and 4,912,705. By
stipulation of the parties, the case was limited to certain TDMA products made,
used and/or sold by Motorola.
On March 29, 1995, the trial ended with the jury's verdict that ITC's patent
claims at issue in the case are not infringed by Motorola and are not valid.
The Company intends to appeal the jury verdict to the U.S. Court of Appeals
of the Federal Circuit and believes that there are substantial grounds for
reversal of the jury's verdict.
While the adverse verdict in the case should not affect the
Company's current alliance with Siemens A.G., its ongoing B-CDMA development
efforts, its ability to market and sell the UltraPhone(R) system worldwide
or the obligation of licensors to pay non-refundable advances or paid-up
license fees under ITC's existing patent license agreements, the Company
believes that if the verdict is not reversed through the appeals process,
the verdict may adversely affect the Company's efforts to generate further
revenue and cash flow from ITC's patent portfolio and may impair generally the
Company's ability to raise additional funds for general corporate purposes.
The outcome of the jury trial may also temporarily or permanently adversely
affect ITC's pending U.S. litigation against Ericsson and its ability to
realize running royalties under certain of its license agreements.
The case did not address the validity or infringement of other patent claims
in the four patents at issue in the jury trial or any patent claims in
any of ITC's 51 other U.S. patents relating to Time Division Multiple Access
("TDMA") and Broadband-Code Division Multiple Access ("B-CDMA") technologies,
none of which were the subject of the case. The validity and infringement of
ITC's patents in 33 foreign countries, mostly relating to TDMA, were likewise
not addressed in the case.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INTERDIGITAL COMMUNICATIONS CORPORATION
Date: March 31, 1995 By: /s/ William A. Doyle
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William A. Doyle
President
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