HTC shares slide after Apple patent ruling

HTC shares slide after Apple patent ruling
HTC shares today fell nearly 6.5% after Apple won a patent infringement case as a preliminary ruling showed that HTC had violated two Apple patents in its Android phones, according to a decision of the US International Trade Commission (ITC). The Taiwanese phone maker's shares had lost 20% of their value between July 6th and July 14th amidst growing investor concerns. Over the weekend, the company mentioned that it would buy back as much as 20 million of its shares, with the first half bought back today and the second in a month. But investors are far from confident about the value of HTC's shares as ITC's ruling could hurt the company's earnings and it hints that even more court battles could ensue.

At the same time, the infringed patents are at the core of Android and could affect not only HTC but Android as a platform. The first patent is about a “system and method for performing an action on a structure in computer-generated data,” while the second is for “real-time signal processing system for serially transmitted data.”

ITC's preliminary decistion however needs to be reviewed by a six-member commission and HTC expressed its confidence:

“We are highly confident we have a strong case for the ITC appeals process and are fully prepared to defend ourselves using all means possible,” General Counsel of HTC, Grace Lei, said. “We strongly believe we have alternate solutions in place for the issues raised by Apple. We look forward to resolving this case, so we can continue creating the most innovative mobile experiences for consumers.”

HTC also mentions that ITC's staff atorney has given an independent opinion that HTC doesn't violeta any patents. Final determination is due on December 6th.

source: Reuters



1. Sniggly

Posts: 7305; Member since: Dec 05, 2009

It's a shame. HTC hasn't let their investors down yet, but the minute Apple flexes its government muscle, people bail.

39. The_Miz

Posts: 1496; Member since: Apr 06, 2011

It's a shame HTC couldn't come up with their own ideas instead of copying Apple's. Oh wait...I forgot when it comes to Android, it's a half baked execution.

56. luis_lopez_351

Posts: 951; Member since: Nov 18, 2010

Its funny because the iphone copied some of the blackberries and original PALM OS ideas. Get a life you what ever the F_ck you are (troll isnt even a good enough word for you)

70. The_Miz

Posts: 1496; Member since: Apr 06, 2011

u mad? Everyone copies someone in the tech world, but it becomes a problem when they directly copy the competitor, in this case, HTC and Samsung copying Apple. Get over it, it's the truth. And lol @ u and Sqiggy talking tough in comments.

2. PhoneUser

Posts: 78; Member since: Dec 11, 2008

People go where the money is and they get scared when someone shakes their pockets......its so F-ing stupid but thats how people are.

17. rican

Posts: 132; Member since: Jul 02, 2011

wouldnt you if your money was at stake.

4. andro unregistered

its seems apple thirst for control will be allowed so that it can become a dictatorship. islaves rejoice Apple will be able to release new 'phones' year after year with little or no changes and have no market rivals,be happy you will handing over buckets of cash for this divine honour

5. thetruthy unregistered

This is less about people going where there money is, because frankly anyone here is a liar if they say they dont do the same please stop with the fanboy nonsense. Nobody wants to lose money bottomline. This whole thing isnt about that for Apple its them trying to remove any challengers, and the Android operating system is its biggest competitor with HTC and Samsung being the best phone makers right now. They keep trying to make them lose their business, and as result will lose its biggest competitors. Blackberry and Windows phon are nowhere near a threat to Apple as the Android phones are. Just to prove my point why does Apple keep targeting HTC and Samsung as opposed to the other countless amount of Android phone providers to eliminate the competition and the more the courts allow this to go on we will see down to just Apple and Windows phone as choice for smart phones as blackberry seems to be dieing a slow death among the fact nobody wants one. But hey to the fanboys that have to curese in a post about a "phone" good luck and get help......

6. messiah

Posts: 438; Member since: Feb 19, 2010

The world is getting too small..... for cellular use

7. davecann2

Posts: 460; Member since: Mar 15, 2011

Bottom line is that Apple has the right to protect their intellectual property. The courts wouldn't rule in Apples favor is there wasn’t some kind of infringement. So... to all you idiots that are saying that apple is the bad guy wake up! You would do the same thing if you had a company and you were losing profits because a competitor, either intentionally or unintentional, infringed on your ideas.

15. Sniggly

Posts: 7305; Member since: Dec 05, 2009

No, I wouldn't. First off, Apple isn't losing profits in any meaningful way. They are the most profitable company in the world, barring oil companies perhaps. Secondly, other companies are more than willing to make deals with "infringing" companies where they get royalties for phones sold. Microsoft does this. And HTC has agreed to such deals already with companies like Microsoft, so we know that they're willing to do so. No, Apple didn't give a s**t about Android's "infringements" until Android gained the momentum that it did in the market. It's not about losing profits. Apple has a fascist market philosophy: they can't stand the thought of anyone else being successful in the same market as the one they occupy/dominate. Therefore, they aim for any means they can in order to destroy the competition through use of government force, rather than simply making products so good no one will want anything else.

21. davecann2

Posts: 460; Member since: Mar 15, 2011

Your argument holds no water and here is why... It doesn’t matter when a company sues for infringement. Bottom line is that Apple has every right to protect their intellectual properties now... tomorrow... or five years from now. Why a company would waste legal fees and court time to sue a company that has the possibility of failing? As Apple watched Android grow their legal teams studied and found obvious infringements that now need to be addressed due to the popularity of the platform. Its smart business practice !

26. Sniggly

Posts: 7305; Member since: Dec 05, 2009

So is it smarter business practice to strike a deal with the supposedly infringing company wherein you're guaranteed to make a killing in royalties, or do you spend millions in legal fees to try to get a decision that won't be granted, piss a lot of people off, and lose out on the opportunity to get those royalties once your case is eventually thrown out (as this case still could be) all against a company that obviously isn't going to actually destroy your already insane profit levels? In terms of public good will, Apple is its own worst enemy.

22. taco50

Posts: 5506; Member since: Oct 08, 2009

As usual your blinded by your fanboy hate for Apple. Did you read that Apple tried to negotiate a deal with Samsung for over a year before they took them to court? How do you know Apple hasn't tried to work out a deal with HTC also? YOU DON'T and that's the point. You speculate and make stuff up in your head to rationalize your Apple hatred and fandroism. Android has copied core functionalities of iOS and Apple has patents for it. Why should they not sue to get royalties or android has to stop using the patents.

27. Sniggly

Posts: 7305; Member since: Dec 05, 2009

See, you're blinded yourself. Why would HTC strike a deal with Microsoft and not Apple? If Apple's business dealings with everyone else on the planet are any indication, it's that Apple probably wasn't looking for a reasonable royalty amount. They were probably either looking to threaten HTC and Samsung into shutting down on their own OR bordering on extortion with the fees they were seeking to obtain. Apple's pulled too many stunts for me to just assume they're the good guy in anything anymore.

28. davecann2

Posts: 460; Member since: Mar 15, 2011

Please clarify, What stunts has Apple pulled that was the deciding factor of which made you hate Apple products so much?

31. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Ah, be careful, Dave. I didn't say I hate Apple products now did I? Apple's handling of events like Antennagate and Trackergate, stealing ideas from app developers, taking app developers' app names for their own services and then telling the developers to change the app names, purposely bidding in bulk for parts early on in order to manhandle suppliers into doing business with them at prices way below what Apple should be paying, striking deals to purposefully minimize sales associates' commission at indirect retailers, forcing the same retailers to buy a 3000 dollar display in order to present their products, trying to get jailbreaking declared a felony... Isn't this enough for you, Dave? Do I really need to say any more?

33. davecann2

Posts: 460; Member since: Mar 15, 2011

I was accusing you but that is also why I asked for clarification... While I hear what you are saying most of your points are rumors and hearsay. Businesses dont have to sell Apple product now do they? They sell them because the devises bring in cutomers. Have you ever been to an Apple store? There are a lot of products out that I feel are over priced. I just dont buy them. I dont go around ripping the company because I dont like what they charge for their product. I am all for jainbreaking but I also look at it as a form of hacking. Hacking is frowned upon and in many cases illegal. Especially when it causes loss of profit.

37. Sniggly

Posts: 7305; Member since: Dec 05, 2009

No, everything I've discussed has been documented, even here at Phonearena. I've been to an Apple store, yes I've seen the sheep there. It's disgusting, really. I'm not just ripping Apple for their products being horrendously overpriced (which they are). Jailbreaking is only hacking the device that YOU already paid for. And while other companies have taken steps to prevent similar practices (and backpedaled when the customers reacted badly, a la Motorola) Apple is the only company in the market that tried to get the practice declared a FELONY OFFENSE. Do you understand the consequences of being convicted of a felony? It isn't pretty, Dave. But Apple wanted to do that to THEIR customers because they're control freaks.

45. davecann2

Posts: 460; Member since: Mar 15, 2011

I would actually respect your opinion more if it was simply that.... "Your opinion" but by your blatant show of ignorance when labeling the people in an Apple store as sheep is simply disturbing and unwarranted. With that said you sir have shown me nothing more than being a typical TROLL. You don’t like the product so you bash the devise and the customers it attracts. Sounds narcissistic to me. You seem intelligent enough to formulate an un-bias opinion. Unfortunately you fail.

49. Sniggly

Posts: 7305; Member since: Dec 05, 2009

*shrug* It is just my opinion that they're sheep. I'll acknowledge that. And I know that not everyone buys Apple products without being informed of their choices. But so many times I hear the reasoning "I'm buying the iPhone because that's what my friends have." "I'm buying the iPhone because I already have a Mac." "I'm buying the iPhone because it's cool and has apps." This is sheeplike behavior, and it irritates me. It would irritate me as well if this kind of behavior was dominantly reflected among Android users. But considering the low percentage of them polled who say they won't switch to the iPhone, I'd say that isn't the case. Btw, I do appreciate you being more level headed and listening better than your cohort Taco. Thanks for listening, however briefly.

62. davecann2

Posts: 460; Member since: Mar 15, 2011

Yeah... I guess I can see where you’re coming from. I kind of feel likewise about many of the Android users I encounter... Its becoming the popular thing to get android because they believe it stands for the anti-apple phone. Everyone should just buy the phone that they like the best. If I was irrational then my apologies... I get frustrated as well trying to stand up for Apple because I enjoy the phone/pad. Also, Thanks for recognizing my level head. I try to stay un-bias because I think Android is a good OS. In fact I am really looking forward to getting my hands on one for work. I like what the platform brings to the table and I like competition. I also think your comments, for the most part, are very level headed and fact based. I enjoy reading your input on many of the other articals... Anyway, I'm sure we will argue more in other articles!

63. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Well, if you meet Android users like that, they're dunderheads too. I agree that people should buy the phone that they like the best. I guess I just pay closer attention to companies' activities than the average customer. Thank you for acknowledging that Android isn't craptastic, that alone qualifies you as level headed. I like when we can get along like this. :) Anyway, time to take the nephews to the movies again.

53. taco50

Posts: 5506; Member since: Oct 08, 2009

Can you provide a source that Apple wanted to make jailbreaking a felony? I've never seen that anwhere.

58. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Here ya go! :) And here are the possible consequences of violating the DMCA: Btw, DMCA abuse is a practice among Young Earth Creationists on Youtube as well.

64. taco50

Posts: 5506; Member since: Oct 08, 2009

No where in that article does it say Apple asked for it to be a felony so you're lying as usual? What do young earth creatinists have to do with this? It's funny because you accuse people of being sheep while you blindly hate Apple for no reason at all. All you have to do is not buy their product.

76. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Do you not understand what the DMCA is? It's the digital millennium copyright act. A criminal violation of it is considered a felony, the possible punishments for which I linked to. Apple fought against jailbreaking being declared exempt from the DMCA, claiming that jailbreaking was unlawful and covered as a crime by this law. It's all right there, which brings us back to the issue of your crippling reading comprehension problems.

77. LionStone

Posts: 1048; Member since: Dec 10, 2010

Daang...taco still gettin owned...same ol story

34. taco50

Posts: 5506; Member since: Oct 08, 2009

Wow you really are totally irrational. Let's see Antennagate - From using the iPhone for both AT&T and Verizon I can tell you this is pretty much a non issue. However Apple gave free cases to everyone who bought the phone and offered returns without a restocking fee. Trackergate - Apple put out a sw update that fixed the problem Taking app names - not really sure what you're talking about Bidding in bulk for parts - I don't see how this is unfair business. Any business bids in bulk when they can to secure a better price. It's how things work. This one really shows what a giant fanboy you are and Apple hater. You don't think HTC and Samsung buy in bulk? You're a dumbass if you think they don't. I doubt Apple has anything to do with associates commission. It's the companies that pick commision rates for their employees. Once again you prove yourself to be totally unreasonable and a hopeless fandroid.

40. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Okay, let's go over what REALLY happened with these events: Antennagate: Apple spent a MONTH trying to tell their customers that the issue was nonexistent- not "insignificant" or "easy to work around" but NONEXISTENT. They then took further steps to try to prove that other phones had the same problem, all the while ignoring that this didn't excuse them even if it was true (it wasn't). Then they declared the free bumper program and restocking fee less exchange program AFTER people refused to buy their bulls**t, even after deleting threads on their support forums mentioning the problem and their misinformation campaign, BUT these programs were for a limited time only. To this day they have made no effort to remedy the issue (which they could've easily done) or continue the free bumper program (again, something they could've easily done.) Other manufacturers have completely redesigned speakers and other parts or included extended batteries for free for the life of the device. But not Apple. Nope. And to top it off, Apple has delayed the launch of the next iPhone by months, whereas other manufacturers would've had an improved model out in LESS time than normal. Trackergate was ALMOST a repeat of the same, with Jobs trying to tell customers that "other companies do it too." As it was it took over a week for Apple to even acknowledge the problem existed. As for proof of Apple taking app names/telling developers to change their own app names: My point isn't illustrated so much by the focus of this article. Look at the last paragraph of the first page and read on. A development studio had an app called iPodrip. Apple told them to change it, and Steve Jobs gave the developer the finger when the dev personally appealed to him. There's the source for Apple's practices with manufacturers. There's buying in bulk, and then there's buying in so much bulk that you practically corner the market. And yes, Apple does. Ask any indirect AT&T retailer. Apple pays a direct small fee to them for selling the phone, and struck a deal with AT&T so that indirect retail salespeople don't get commission for data plans either. This is why indirect retailers like the one I worked for briefly only sold the iPhone if someone specifically insisted on it, because of the combination 3000 dollar display policy and the ridiculously small profit margin on selling the phone. So Taco, shut your mouth or admit you're wrong. I'll take either one.

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