The U.S. International Trade Commission (ITC) has agreed to
) patent infringement case against HTC Corporation. The
litigation accuses HTC of violating six of Nokia's patents.
Notably, Nokia and HTC have been engaged in legal battles over
patent disputes for quite some time.
ITC will investigate Nokia's allegations, which claim that HTC
has violated Nokia's video processing, internal smartphone design
and radio transceiver technology. Additionally, the lawsuit
accuses HTC of breaching Nokia's method and computer program
patents that are used for signalling tags.
In its complain to the ITC, the Finnish handset manufacturer
wants an import ban on several of HTC's smartphones, including
some of last year's 'HTC One' models. Nokia also lodged a federal
suit in Southern California to stop HTC from violating its
patents and has asked for unspecified damages.
This is the second complaint to ITC as Nokia had earlier filed
a case against HTC for using its power saving technology, which
saves battery life when connected to a network. Nokia has filed
similar cases against HTC in the U.K. and Germany.
Nokia further argues that HTC has not put a halt to its
practices in spite of the Lumia developer winning the case in the
German court. Instead, HTC has shifted the accountability to its
Nokia has the strongest patent portfolio in the wireless
industry, and has spent almost $62 billion in research and
development in the last two decades. Furthermore, 41 mobile
handset manufacturers use Nokia's patents through patent
licensing agreements. Nokia receives a healthy royalty from
these agreements and would give its best to protect this
fee-based income, as the company struggles to regain smartphone
Earlier, Nokia had also charged
Research In Motion Limited.
) with patent cases and has been successful in winning it them.
Nevertheless, Nokia has suffered some setbacks in its attempt to
protect its patents. The company has lost some patent lawsuits
against HTC in Germany over the use of
) play app and content store client app in the Android-based
Although ITC's probe does not necessarily indicate a victory
for Nokia, the legal body has the power to impose an U.S. import
ban on some of HTC's devices if found guilty. We believe Nokia
will continue its legal fight against HTC to weaken its main
Windows phone rival.
Nokia currently carries a Zacks Rank #3 (Hold).
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