SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
________________________________
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): May 20, 1995
INTERDIGITAL COMMUNICATIONS CORPORATION
(Exact name of issuer as specified in charter)
PENNSYLVANIA 1-11152 23-1882087
(State or Other Jurisdiction of (Commission (I.R.S. Employer
Incorporation or Organization) file number) Identification
Number)
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
Item 5. Other Events.
Settlement of Litigation with Hughes Network Systems, Inc.
Effective June 2, 1995, InterDigital Communications Corporation (the
"Company") entered into a Settlement Agreement and Mutual Release (the
"Settlement Agreement") with Hughes Network System, Inc. ("HNS") in connection
with the lawsuit filed against the Company by HNS in February 1993. In the
lawsuit, HNS alleged the Company breached certain agreements which were entered
into between HNS and the Company relating to the termination of certain prior
agreements between the parties. Under the terms of the Settlement Agreement, the
Company has paid HNS $7,500,000, which amount had been substantially previously
reserved by the Company, and HNS has been granted credits aggregating $900,000
against royalty and other payment obligations relating to the Company's
proprietary Time Division Multiple Access technology ("Credits"). The Credits
may be applied to any royalties becoming due to the Company or its affiliates
from HNS after the date of the Settlement Agreement pursuant to the 1990 License
Agreement, dated October 23, 1990, the 1992 License Agreement, dated February
29, 1992 and any other agreement between HNS and the Company or its affiliates
relating to intellectual property rights.
Stay Order Entered in Ericsson Radio Systems, Inc. Litigation
On May 20, 1995 the United States District Court for the Northern
District of Texas, Dallas Division, entered an order on the joint motion of the
parties extending to August 15, 1995 an Interim Stay on the declaratory
judgment action filed by Ericsson Radio Systems, Inc. ("Ericsson Radio") and
Ericsson GE Mobile Communications Inc. ("Ericsson GE") against the Company and
its indirect subsidiary InterDigital Technology Corporation (the "Ericsson
action") and the consolidated patent infringement case filed by InterDigital
Technology Corporation ("ITC") against Ericsson GE and Ericsson Radio (the "ITC
action"). The ITC action currently seeks a jury determination that the Ericsson
defendants have infringed five different patents from ITC's patent portfolio as
well as preliminary and permanent injunctions against the Ericsson defendants
from further infringements. The ITC action also seeks damages, royalties, costs
and attorneys' fees. The Ericsson action involves the same patents that are the
subject of the ITC action and seeks the court's declaration that Ericsson's
patents do not infringe ITC's patents, that ITC's patents are invalid and that
ITC's patents are unenforceable. The Ericsson action also seeks judgment
against the Company and ITC for tortious interference with contractual and
business relations, defamation and commercial disparagement, and Lanham Act
violations. Pursuant to an order of the District Court in Texas entered April
26, 1995, proceedings in the Ericsson action had previously been stayed until
May 19, 1995. The Company anticipates that if the present stay is not further
extended, discovery will resume and the parties will proceed to trial some time
in 1996.
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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: June 22, 1995 By: /s/ William A. Doyle
-----------------------------
William A. Doyle
President
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