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HTC's market share may shrink on patent suit loss: analyst

HTC's market share may shrink on patent suit loss: analyst

Taipei, Oct. 18 (CNA) Taiwanese smartphone maker HTC Corp. risks losing ground to its competitors in the mobile market if it continues to lose its patent-infringement disputes with Apple Inc., an analyst in Taipei said Tuesday. An administrative law judge of the United States International Trade Commission (ITC) ruled Monday that Apple had not violated HTC's four patents related to technologies for power management and phone dialing. It was the first ruling in one of two patent-infringement cases HTC has lodged against Apple since May 2010, seeking to ban U.S. imports of Apple's iPhone, iPod Touch and iPad. "The ruling is of symbolic rather than substantial significance," said Joey Yen, a senior analyst at International Data Corp. (IDC), in an interview with CNA. "If HTC continues to lose in the ITC's rulings in the next few months, the worst-case scenario will be similar to Samsung's -- a sales ban in some regions -- which will lead to loss of market share," she said. Apple has managed to bar the sale of the Samsung Galaxy Tab 10.1 in Germany and Australia. "HTC won't be willing to see that happen," Yen added. "I believe the company will seek a settlement with Apple before the final ruling in the case, which is taking a long time." In response to Monday's decision, HTC said it had received notice of the ITC judge's initial determination in the case and was prepared to appeal the ruling. "This is only one step of many in these legal proceedings. We are confident we have a strong case for the ITC appeals process and are fully prepared to protect our intellectual property," Grace Lei, general counsel of HTC, said in a statement. "We look forward to resolving this case, so we can continue creating the most innovative mobile experiences for consumers," Lei said. On Nov. 1, a final ruling is expected in another HTC lawsuit against Apple, in which HTC has accused its rival of violating patents owned by HTC subsidiary S3 Graphics. The ITC ruled in July in a preliminary decision that Apple's Mac OS X system had infringed on two texture compression patents of S3, but the iPhone and iPad had not. Moreover, a final ITC ruling is slated for Dec. 6 in another Apple lawsuit against HTC, in which the commission found that HTC had violated two patents owned by Apple. (By Jeffrey Wu)


Updated : 2021-10-18 15:37 GMT+08:00