German law makers likely to uphold technology firms patent dispute relating to HTC 3G smartphones:
HTC earlier dropped an appeal related to a separate issue in the German Federal Patents Court stating that the court had help the patent in question invalid:
A spokesperson in London said:
“HTC considers that the appeal had become redundant as the German Federal Patents Court had previously held the relevant claim of the patent to be invalid,”
But in an email from IPCom managing director Bernhard Frohwitter they seem to see things very differently:
“We will use the right awarded by the courts, likely resulting in HTC devices disappearing from shops during the crucial Christmas season,”
IPCom, are a company based in Pullach, Germany, in 2007 they bought a portfolio of patents related to mobile technology from Bosch after they failed to license them to Nokia in 2003, and now seeks royalties for their use.
The technology that is most closely associated with the HTC case seems to be the patent that first establishes a wireless connection on a 3G device.
Huge financial hit for HTC in run up to Christmas:
A spokesperson from IPCom said:
“IPCom now intends to execute this injunction in the shortest possible time…we will use the right awarded by the courts, likely resulting in HTC devices disappearing from shops during the crucial Christmas season.”
Not the first legal battle between the two: or In Germany:
With Samsung having to redesign their Galaxy tablets in order to carry on selling in German markets, we can see that HTC are likely to be the next foreign technology company to be made an “example” of in German courts.
Precedent already set:
IPCom has also won a prior case against HTC the Taiwanese smartphone manufacturer over similar issues related to their UMTS (3G cellular technology) patent collection.
And Nokia have not been without a knock on the door in recent times from IPComs’s legal department surrounding patents.
Investor warning:
Things are not perfect in any way for HTC, they have seen increased pressure from various manufacturers in the smartphone marketplace and a tough economic climate globally all affecting overall revenues for the last quarter of 2011. Indeed HTC have cut estimates of sales by as much as 23%, as sales dip fro a second quarter which will be the first time in 2 years that this has happened.
Unfortunately this news was prior to the likely ban on smartphone sales in the run up to Christmas in Germany, which, as a result could see the company struggle to return to growth in the coming year, as strong sales from Samsung and Apple hit HTC’s bottom line in crucial areas of their product portfolio.
Anthony Munns