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2011

GERMAN RETAILERS SUED FOR SELLING HTC PHONES

December 24, 2011 0

Patent wars are quite common between the tech giants, but rarely does one see a patent lawsuit between two indirectly involved parties. Here is a case, wherein IPCom, a German company that licenses technology patents for mobile phones, is suing German retailers, who are still selling 3G phones from High Tech Computer (HTC). The reason for the same is that HTC is in violation of a court injunction issued in 2009. The image above is taken from here.

The licensing company, IPCom said that all HTC phones use one of its patents, #100a, which describes an algorithm for managing bandwidth on UMTS networks in emergency situations. It noted that a number of other manufacturers have licensed the said patent from IPCom, but HTC chose not to license it form IPCom.

This reason had led to an injunction issued by the District Court of Mannheim in 2009. The injunction ordered for banning the sale of HTC phones using the technology. IPCom spokesperson noted clearly that HTC was guilty of the offense as it stated that there was an appeal of the injunction in the Higher Regional Court in Karlsruhe even from HTC, but the company chose to drop the same on Nov. 25, HTC dropped its appeal.

IPCom, on its part, is on its way to seek the enforcement of the injunction.

On December 6, IPCom had sent cease-and-desist requests to 100 retailers, noting the fact and had asked them to abide by the injunction by Dec. 20. For the same, no retailer complied.

Interestingly, the licensing company’s spokespersons noted that the company has filed suit against 30 retailers in regional courts in Mannheim and Munich. Additionally, the company even requested the Mannheim court to begin penalty proceedings against HTC, which would be levied as a heavy fine on the mobile manufacturer.

HTC, still worked on defending itself as it said that its phones do not make use of the teaching of the patent. Moreover, HTC brought to one’s notice that the European Patent Office is examining the validity of patent #100a. For the same, it would schedule to hold a hearing on April 24.

HTC seems to have belief in its products, as it said that it is “confident that the patent will be revoked.” HTC said, “In an initial assessment, the European Patent Office has raised serious concerns as to its validity.”

Owned by German patent lawyer Bernhard Frohwitter and engineer and entrepreneur Christoph Schoeller, IPCom briefed that the acquisition of its portfolio has seen encompassing about 160 mobile communications patent families. The shift was made from German engineering company Robert Bosch in early 2007. This German engineering company had developed the technologies starting in the mid-1980s.

IPCom even has a stake held by the U.S. private equity firm Fortress Investment.

HTC, is being grilled in a number of ways, with Apple on one hand and IPCom on the other. Moreover, competing with its other Android counterparts even is making it difficult for the company to be sustainable.