HTC Tablet Flyer, Droid accused of violating Apple's patents
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HTC Corp. (2498), the second largest smartphone maker Asia, was accused of infringing Apple Inc. (AAPL) in a patent case that could end U.S. imports the telephones of the Taiwanese company and its new tablet computer Flyer.
HTC says Apple is infringing five patents related to software architecture and user interfaces in portable electronics, hardware for touch screens and motion sensors, according to a complaint filed July 8 with the U.S. International Trade Commission in Washington. The complaint is the second Apple has filed against Taoyuan, Taiwan-based HTC.
Apple has been using the trade commission, which has the power to block the products of the U.S. market, to pursue the manufacturers of mobile phones running Google Inc. (GOOG) 's Android operating system and compete with the iPhone. By filing the complaint against HTC, and filed a July 5 against Samsung Electronics Co., Apple is extending the battle to the tablet computers that challenge the market position of the iPad.
"HTC is appalled that Apple has turned to the jurisdiction of the courts rather than the market," said Grace Lei, HTC's general counsel. "HTC is vehemently denying all allegations of past and present Apple against it, and will continue to protect and defend its intellectual property, as it has done this year."
Shares fall
HTC shares lost 5.9 percent to trade at NT $ 925 from 12:30 pm in Taipei, turned to its lowest close since February 11 after falling to the limit of 6.9 percent daily. The stock has added 2 percent this year compared with a fall of 5.2 percent in the benchmark TAIEX. Apple lost 1.6 percent to $ 354 on the Nasdaq Stock Market.
In March, HTC launched the Flyer, the first tablet in the U.S. to compete with Apple's iPhone and Samsung Galaxy Tab. The booklet has a 7 inch screen and uses Android, while the second tablet HTC called EVO 4G Vista provides faster connections to Sprint Nextel Corp. (S) 's fourth-generation network.
HTC last week agreed to buy S3 Graphics Co. for $ 300 million after the maker of graphics chips games won an infringement decision in the trade agency against Apple. HTC also has its own patent complaint against Cupertino, California Apple Commission, with results scheduled to be released September 16.
Judgement expected
A judge of the Trade Commission is expected to issue a decision in the case against former Apple HTC Aug. 5. These findings are subject to review by the full Commission.
The last case of patent infringement claims covering "innovative technologies developed by Apple in conjunction with the development of its innovative iPad iPhone and iPod touch products," Apple said in the lawsuit.
Apple, which has accused competitors of the "generalized imitation" is also evident in the battles of commercial agency with Samsung Electronics and Motorola Mobility Holdings Inc., both manufacturers of phones based on Android. The complaint is directed to both the phone and the Samsung Galaxy Galaxy tablet computer.
Android is the most popular mobile device operating system in the U.S. , Which represents 38 percent of the market in the three months ended in May, according to Reston, Virginia, researcher ComScore Inc. Apple IOS, which is used in the IPAD and the iPhone, comprising 27 percent of market.
Benefits Beat Expectations
HTC reported July 6 that sales and net profit exceeded analysts' expectations for the second quarter ending June 30, after launching models with faster download and better shows. Both HTC and Apple more than doubled the income of mobile phones in the March quarter last year as the race to offer its products in more markets worldwide.
Seeking to expand its patent portfolio, HTC, said in April it paid $ 75 million for patents for wireless ADC Telecommunications, Inc. According to the database of U.S. patents and Trademark Office, 171 patents have been assigned to HTC. The most recent are two issued on July 5 for the audio signal processing and an electronic device with a user input device.
Apple, once best known for its Mac computers, now relies on your iPhone by about 50 percent of iPhone sales and 12 percent, according to first-quarter figures compiled by Bloomberg.
Current Issues
The commission issued a statement yesterday seeking information on public issues raised in the complaint. These applications have become standard, to allow the agency to determine whether an order should be granted the exclusion of Apple wins the case.
Apple called HTC Corp., the U.S. unit HTC America Inc. based in Houston and Exedea Inc., a wholly owned subsidiary in its last action.
The new complaint in the matter of portable electronic devices and related software, communication No. 2828, the International Trade Commission U.S. (Washington). Apple's previous case against HTC is matter of some personal data and mobile communications devices and related software, the case against Apple HTC is Subject of portable electronic devices, 337-721, both ITC.
Source: Bloomberg
HTC is considered to be the competitor of the iphone and developing good mobile phones but the legal matters about the architecture and user interfaces. So let the court decide this, we can only hope for the better.