Court Refused to Dismiss Collusion Suit Over 4G Standards

In TruePosition Inc. v. LM Ericsson Telephone Co. et al., Eastern District of Pennsylvania Judge Robert F. Kelly refused to dismiss an antitrust suit against Qualcomm Inc., LM Ericsson Telephone Co., and Alcate-Lucent SA.  In its suit, TruePosition claims that the defendants violated antitrust laws by conspiring to use their influence within two standard-setting organizations — Third Generation Partnership Project and European Telecommunications Standards Institute — to prevent the adoption of TruePosition’s Uplink-Time Difference of Arrival positioning technology into the standards set for 4G wireless networks.  Defendants moved to dismiss plaintiff’s suit for failure to state viable antitrust claims.  The court denied defendants’ motion to dismiss, holding that although TruePosition failed to allege direct evidence of a purported anti-competitive agreement between the telecommunications companies, it made sufficient allegations based on circumstantial evidence of parallel conduct to keep the suit alive.

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