InterDigital Sinks; Loses Patent Suit Vs Microsoft, ZTE

InterDigital IDCC shares dropped in the extended hours session after the company lost its patent dispute with Microsoft (NASDAQ; MSFT) and privately held ZTE Corp. of China.

InterDigital had contended the two companies violated its patents by failing to license technology used in their respective smart phones.

InterDigital said it will appeal the decision by the U.S. Trade Commission in Federal Court.

InterDigital's Chief Executive, William J. Merritt, called the decision "disappointing" but added that it "won't have a meaningful impact" on the company.

InterDigital gets most of its revenue from licensing its technology for mobile devices and wireless infrastructure. Just three customers generated 60 percent of its 2013 revenue: Pegatron Corp., Intel Mobile Communications GmbH and Sony Corp. SNE

In after-hours trading, Interdigital shares changed hands recently at $41.30, down 3.7 percent.