Litigation

MICROSOFT CORPORATION et al. v. InterDigital Patent Holdings Inc.

Final Written Decision filed

IPR2024-00538

Filed
2024-02-09

Patents at issue (1)

Summary

An Inter Partes Review (IPR) filed by Microsoft, Lenovo entities, and Motorola Mobility against InterDigital Patent Holdings Inc., which has resulted in a Final Written Decision.

Case overview & background

Plain-language overview of the case: parties, accused product, patents at issue, and why the suit matters.

The case IPR2024-00538, MICROSOFT CORPORATION et al. v. InterDigital Patent Holdings Inc., involves several prominent technology companies challenging the validity of a patent owned by a significant patent licensor. The Petitioners, MICROSOFT CORPORATION, LENOVO (UNITED STATES), INC., LENOVO PC HK LIMITED, LENOVO GROUP LIMITED, and MOTOROLA MOBILITY LLC, are all operating companies that design, manufacture, and market a wide range of consumer electronics, personal computers, software, and mobile devices. Microsoft is a multinational technology company known for software, cloud computing, and hardware. Lenovo Group Limited is a Chinese multinational technology company specializing in consumer electronics, PCs, and servers, with Motorola Mobility LLC operating as its smartphone brand.

The Defendant, InterDigital Patent Holdings Inc., is an entity of InterDigital, Inc., which is a wireless, video, and AI technology research and development company. InterDigital is often characterized as a non-practicing entity (NPE) or patent assertion entity (PAE) that primarily focuses on inventing and licensing its extensive patent portfolio rather than manufacturing products. The patent at issue is U.S. Patent No. 9,173,054, titled "Data Transfer Between Wireless Devices." This patent broadly describes methods and systems for transferring data between wireless devices, specifically involving the use of a first wireless protocol (like Bluetooth) for device detection and a second, different wireless protocol (like Wi-Fi) for transferring selected media to that device. The underlying technology relates to efficient wireless communication and data transfer, which is highly relevant to the petitioners' product lines.

This Inter Partes Review (IPR) proceeding, IPR2024-00538, is taking place before the Patent Trial and Appeal Board (PTAB) of the U.S. Patent and Trademark Office. The PTAB is a specialized administrative tribunal that reviews the patentability of claims in an issued patent. This venue is significant because IPRs provide an alternative, often faster and less expensive, route to challenge patent validity compared to district court litigation, particularly for alleged standard essential patents (SEPs) or patents involved in broader licensing disputes. The IPR was filed on February 9, 2024.

The case is notable due to its linkage with broader patent infringement litigation between InterDigital and Lenovo/Motorola, and previously with Microsoft. InterDigital had previously sued Lenovo (including Motorola Mobility) in September 2023 in the U.S. District Court for the Eastern District of North Carolina, asserting infringement of five U.S. patents, including the '054 patent, across Lenovo's product portfolio, such as smartphones, laptops, desktops, and tablets. This district court case was later dismissed by stipulation in October 2024, pursuant to a private arbitration agreement between the parties. The IPR filed by Microsoft, Lenovo, and Motorola is a direct challenge to the validity of patents that InterDigital has asserted or is known to assert against major technology implementers in the wireless and video communication space. The mention of a Final Written Decision having been filed indicates that the PTAB has completed its review and issued a ruling on the patentability of the challenged claims. This IPR activity is part of a larger, ongoing global licensing and litigation landscape involving InterDigital and various tech giants, including disputes in the UK and with other companies like Amazon and Disney over standard essential patents (SEPs) and video encoding technologies.

Key legal developments & outcome

Major rulings, motions, claim construction, settlements, and the present posture or final disposition.

The IPR case IPR2024-00538, filed by MICROSOFT CORPORATION et al. against InterDigital Patent Holdings Inc., concerning U.S. Patent No. 9,173,054, has proceeded through the PTAB process, culminating in a Final Written Decision.

Here's a chronological overview of its key legal developments and outcomes:

1. Filing & Initial Pleadings

  • Petition Filing: Microsoft Corporation, along with Lenovo (United States), Inc., Lenovo PC HK Limited, Lenovo Group Limited, and Motorola Mobility LLC, filed the petition for Inter Partes Review on February 9, 2024. The petition challenged claims 1, 3-10, 12, 14-15, 21, 23, 25-32, 34, 36-37, 43, 46-47, and 49-50 of U.S. Patent No. 9,173,054, titled "Data Transfer Between Wireless Devices."
  • Grounds for Unpatentability: The primary ground for the challenge was that the challenged claims were anticipated or rendered obvious by prior art, specifically relying on "Forutanpour (Application # 2011/0083111)." A central argument was that the '054 patent's claims were not entitled to earlier priority dates due to a lack of adequate written description support for using one protocol (Bluetooth) for discovery and a different protocol (WiFi) for data transfer.

2. Pre-Institution Developments

  • Discretionary Denial Arguments: The Petitioner argued against discretionary denial under both the Fintiv factors (35 U.S.C. § 314(a)) and 35 U.S.C. § 325(d). The Fintiv factors weighed against denial because any parallel district court case was in its early stages with no trial date set. The petition was presented as a parallel, not serial, petition to a previous one, introducing materially different arguments and prior art (Forutanpour) that could not have been raised earlier.
  • Institution Decision: The PTAB issues an institution decision within approximately six months of the petition filing. The details of the institution decision for IPR2024-00538 are not explicitly provided in the search results, but the case proceeded to a Final Written Decision, indicating that the IPR was instituted.

3. Claim Construction

  • In IPRs, the PTAB applies the same Phillips claim construction standard used by district courts. Specific outcomes regarding claim construction for IPR2024-00538 were not detailed in the search results.

4. Discovery Milestones & Trial Events

  • Oral Argument: Oral arguments for IPR2024-00538, along with a related IPR2024-00537, were scheduled for April 15, 2025.

5. Final Disposition

  • Final Written Decision: The case status indicates a Final Written Decision has been filed. An IPR typically concludes with a Final Written Decision within 12 months of institution, extendable by up to six months for good cause. The search results do not explicitly state the date or the outcome (patentable/unpatentable) of the Final Written Decision for IPR2024-00538.
  • Appeal: Following the Final Written Decision, either party can appeal to the United States Court of Appeals for the Federal Circuit. RPX Empower indicates a Federal Circuit case, 25-2050, Microsoft Corporation v. InterDigital Patent Holdings, Inc., filed on August 26, 2025, originating from IPR2024-00538 and IPR2024-00537. Another Federal Circuit case, 25-2049, with the same parties, was filed on November 6, 2025. These likely represent appeals of the PTAB's decisions in the IPRs.

6. Parallel Proceedings

  • Parallel District Court Litigation: The petition for IPR2024-00538 noted the existence of a parallel district court case that was in its early stages with no trial date set, which influenced the PTAB's decision against discretionary denial under Fintiv. The specific details of this district court case were not provided in the search results.
  • Related IPRs: IPR2024-00538 was filed alongside at least one other IPR, IPR2024-00537, by the same petitioners against InterDigital Patent Holdings Inc. on related patents or claims, as evidenced by their joint oral argument scheduling and joint appeal to the Federal Circuit.
  • Director Review: The Director of the USPTO has the authority to review PTAB decisions, including institution decisions and final written decisions. Recently, the deadline for requesting Director Review of institution decisions was extended from 14 to 30 days. As of the current date, if a Final Written Decision for IPR2024-00538 was issued within the typical timeframe (approximately 18 months from the February 9, 2024 filing), it would likely have occurred by August 2025, potentially followed by a request for Director Review if applicable, and then an appeal to the Federal Circuit, consistent with the appeal filings mentioned.

Plaintiff representatives

Counsel of record for the plaintiff(s): attorneys, firms, and roles (lead counsel, of counsel, local counsel).

The petitioners in IPR2024-00538, MICROSOFT CORPORATION et al. v. InterDigital Patent Holdings Inc., are represented by attorneys from several prominent intellectual property law firms.

Here's a breakdown of the counsel of record for the plaintiff(s):

Weil, Gotshal & Manges LLP

  • Jeffrey Homrig - Lead Counsel. Based in Austin, Dallas, or Houston. Mr. Homrig is a highly regarded IP litigator with impressive expertise in both software and hardware cases, representing clients on complex patent and trade secret matters.
  • Benjamin E. Marks - Counsel. Based in New York. Mr. Marks heads Weil's Intellectual Property & Media practice and advises on complex and cutting-edge copyright and trademark litigation, music licensing, unfair competition, and First Amendment issues.
  • Douglas Lumish - Counsel. Mr. Lumish is a respected litigator active across trade secrets misappropriation, patent, and trademark disputes, and frequently appears in the Federal Circuit and the ITC.
  • Charan J. Sandhu - Counsel. Based in New York.
  • David Yohai - Counsel. Based in New York.
  • Yehudah Buchweitz - Counsel. Based in New York.

WilmerHale

  • David L. Cavanaugh - Lead Counsel. Mr. Cavanaugh has extensive experience in all aspects of intellectual property practice, including IP litigation, patent procurement, technology transfer, and licensing. He has been particularly active in post-grant proceedings at the USPTO since the America Invents Act (AIA) and has been named as one of the most active attorneys in inter partes review (IPR) by Patexia. He has been lead counsel or counsel of record on over 400 IPR proceedings.
  • Joseph Mueller - Counsel. Mr. Mueller often works on IP litigation, regularly counsels technology companies, and has notable experience handling matters at both trial and appeal.
  • Lisa J. Pirozzolo - Counsel. Ms. Pirozzolo is recommended for her counsel in patent infringement and licensing disputes, frequently representing prominent life sciences and technology companies.
  • William F. Lee - Counsel. Mr. Lee is a preeminent IP litigator with an impressive track record representing leading life sciences and technology companies in high-value patent trials.

Perkins Coie LLP

  • Joseph Hamilton - Counsel. Based in Los Angeles. Mr. Hamilton has developed a comprehensive litigation approach for clients, managing and coordinating litigation in federal district courts, the U.S. International Trade Commission, and the USPTO, and has been recognized for his activity and performance in the IPR space.
  • Patrick Basinski - Counsel. Mr. Basinski has extensive experience in IP and commercial legal matters involving cloud services, software, artificial intelligence (AI), and Internet of Things (IoT). He previously served as in-house counsel for Microsoft and Dell.
  • Nathan Kelley - Counsel. Mr. Kelley co-chairs the firm's Federal Circuit patent appeals practice and handles high-profile patent litigation appeals, IPRs at the PTAB, and related USPTO work for technology and pharmaceutical clients.
  • Jessica Kaiser - Counsel. Ms. Kaiser is recognized for her expertise in PTAB procedures.
  • Paul T. Parker - Counsel. Mr. Parker regularly acts for medical technology companies in patent-related matters, with significant experience in patent prosecution, portfolio management, and litigation.
  • Sumedha Ahuja - Counsel. Ms. Ahuja is recognized for her expertise in AI intellectual property matters and other software patents, often advising on patent portfolio strategy, drafting, and prosecution.
  • Nicole Dunham - Counsel. Ms. Dunham is a renowned IP attorney, counseling technology and medical device companies through funding, patents, and acquisitions.

Finnegan, Henderson, Farabow, Garrett & Dunner, LLP

  • Aaron Parker - Counsel. Based in Washington D.C. Mr. Parker is a seasoned patent litigator in U.S. district courts.
  • Michele C. Bosch - Counsel. Ms. Bosch has extensive experience representing domestic and international clients in inter partes and ex parte matters.
  • Elliot C. Cook - Counsel. Based in Reston. Mr. Cook operates across an array of IP practices, including patent litigation, portfolio management, and post-grant patent challenges.
  • J. Michael Jakes - Counsel. Mr. Jakes regularly handles complex patent infringement disputes concerning various technologies and life sciences matters.

Defendant representatives

Counsel of record for the defendant(s): attorneys, firms, and roles (lead counsel, of counsel, local counsel).

In IPR2024-00538, MICROSOFT CORPORATION et al. v. InterDigital Patent Holdings Inc., the counsel of record representing the defendant, InterDigital Patent Holdings Inc., is from the firm Finnegan, Henderson, Farabow, Garrett & Dunner LLP.

The following attorney is noted for representing InterDigital in PTAB proceedings:

  • Michael J. Flibbert - Lead Counsel.
    • Firm: Finnegan, Henderson, Farabow, Garrett & Dunner LLP, Washington, DC office.
    • Experience: Michael Flibbert has over 20 years of patent litigation experience, serving as lead counsel in inter partes review (IPR) proceedings before the PTAB, district court litigations, and appeals at the U.S. Court of Appeals for the Federal Circuit. He has particular experience representing pharmaceutical patent holders in Hatch-Waxman Act litigations and has served as lead counsel for patent owners in IPRs resulting in non-institution decisions or successful motions to amend. His practice covers various areas of patent law, including infringement, validity, enforceability, appeals, and remedies. Finnegan is a large intellectual property law firm with a strong reputation in high-stakes trials and PTAB proceedings.