HTC shares tumble after company infringes on Apple’s patents

By on Jul 18, 2011 at 8:50 AM
Business July 18, 2011

Shares of HTC’s stock closed down 3.9% at T$871 on Monday, just three days after the the U.S. International Trade Commission announced that the Taiwanese company was guilty of infringing on two of Apple’s patents. The patents were related to a “system and method for performing an action on a structure in computer-generated data,” and a “real-time signal processing system for serially transmitted data,” but the judge’s ruling is still awaiting the review of a 6-member Commission. “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,” HTC’s general council Grace Lei said on Friday “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 has an ongoing patent lawsuit against Apple. The Financial Times attributed the sell-off to “investor fears that the legal battle could have wider implications for the competitive balance between Apple and Google Android-based phonemakers like HTC, Samsung, and Motorola.”

[Via 9to5 Mac]

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54 Comments

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  • http://twitter.com/gragib G Ragib

    Oh no!

  • http://twitter.com/kenypowa Ken K.

    Honestly, I don’t think a 3.9% price drop can be classified as “tumble”. 20% drop in RIMM is tumble, but not 3.9%.

    • Anonymous

      But the drop is on top of a 16% drop in the prior week due to anticipation of the ruling. Turns out to be more than a 20% drop overall. HTC is gonna need to take drastic measures to shore up investor confidence. They are quickly going the way of RIM and Nokia.

      • Anonymous

        Wtf are you talking about the way of Nokia and rim? Lets wait and se what countersuit rulings are. Before you jump to conclusions

      • Anonymous

        Their market value and consumer perceptions are following the exact trajectories that RIM and NOK took. Look at the charts.

      • Anonymous

        LOL, you are a terrible troll. Always have been, always will be.

      • Anonymous

        I guess when you can’t rebut with facts, you always scream troll. That’s cool for some, but smart people prefer interesting discourse.

      • Boodah

        Will never happen.  I’ll make a friendly gentleman’s bet that nothing much will become of it.

      • Boodah

        I guess I’d better clarify.   HTC will simple roll out a new series of phones that abide by the laws stated in the brief.  There will be workarounds and payoffs that ultimately lead to a low key resolution.

      • Anonymous

        Except for the fact the two patents cover actions within the Android OS. Google will have to come up with an original method of working around the patents. That means millions spent on R & D, not to mention time. How can Google afford this? Licensing Android. There’s a reason OSs aren’t free.

      • KCRic

        @LouisLouis4:disqus Millions in R&D? It’s literally a few lines of code, at worst maybe a few dozen. They can knock that out in a day. The entire process may take a week at most just for testing and a few rewrites. Then they will package it in a small update file and sent it out via an OTA update. 1 week and maybe a few hundred thousand – nothing special.

      • Anonymous

        @dd93db1ceb018c02c4af53c3a4293d2c:disqus Maybe you should read FOSS Patents, where they feel that it’s more than a few simple lines of code.

      • Anonymous

        LOL!  Yeah, sure, and the Earth is flat!

      • Anonymous

        Since you love charts so much, ever get a good look at a Weight Chart?? They’re drafted for a reason, you know!

  • jay for hay

    the thing that kills me here is that apple is the one copying everyone else. Just look at ios5 with imessage, notifications etc, etc. Without Jobs there on a day-day basis, they have no innovated one bit. Instead, they take the best of other smartphones, and then repackage it as their own.

    • Boodah

      Please point out these instances of ‘copying’.  

      • KCRic

        Why not? If it walks like a duck, it’s a duck.

        iOS people like to interject in conversations about open source like they know what’s going on. Truth is – they don’t. There are dozens of open source licenses that can be used to limit the use of any software. Just because something is listed as open source doesn’t mean you can just copy it at will. An operating system can easily have 15 different licenses protecting various pieces of code inside it and unless you know which one the notification system is covered under then GTFO.

      • Anonymous

        Because you feel Apple copied the code? Line for line? 

        Did Google patent the notification system? From what I’ve read, it only looks similar and actually works quite differently. 

      • jay for hay

        i gave you two examples right off the hop…imessage and notifications, both copied from RIM. Not to mention their cloud service was a COMPLETE rip from a guy who tried to deliver ‘icloud’ to apple. Apple refused in, then stole the idea and repackaged it as their own. If you look at the two logos, they are almost identical. But yet, apple innovates. Gimmie a break. All you people who buy into their BS should get your heads checked. Apple is the finest rip-off company the world has ever seen! they just know how to advertise really damn well.

      • Flatiron

        I think you’re getting iCloud confused with Wifi Sync.

      • Anonymous

        The way iCloud works was not stolen from someone. 

        And I don’t think Apple uses the same implementation for iMessage as Blackberry uses for BBM. I don’t think it even works the same way in a technical manner. 

      • http://twitter.com/Mrt1connect Mrt1connect

        And icloud runs off microsoft’s cloud system

    • Anonymous

      Jealousy is a bad thing, fandroid…go back to sucking off Larry page, maybe he might give you some ice cream over your face

      • Anonymous

        lol, now that’s nasty. lol.

    • Anonymous

      Oh please.  Take a look at what Android was before the iPhone was announced and compare it to what Android is now.  Google is the copy machine here.

      • ApplevsHTCvstheWorld

        Yes and the iOS interface looks nothing like what was found on my Treo 500 or 600 series either *roll*. Any iOS feature added since iOS 3 is in direct response to either things found on Android that users wanted or features brought about by the Dev community to jailbroken phones. Apple has never been an innovator but a company who makes pop culture devices that are marketed to be “hipper, not better” and it works for them. The original iPhone was a step forward in the smart phone game and that point is undisputed for sure, but iOS 4 and all the beta’s of iOS 5 I’ve played with have all had features added that were already present in iOS, nothing ground breaking and nothing all that spectacular. Mind you not once have I stated Android is the superior platform, I personally think webOS is the best of the bunch but the hardware is crap so let’s hope the pre3 finally is a decent phone. 

      • Anonymous

        “Apple has never been an innovator”

        “The original iPhone was a step forward in the smart phone game and that point is undisputed for sure”

        Conflicted much?

        As for your Treo devices, have a look at the Newton (1993) sometime.

      • Anonymous

        The Iphone came out over a year before ANY Android phone was released!!!  Better stop sniffing glue!

    • Anonymous

      Yeah but since they’re not getting sue for it it’s cost they’re paying Royalties, why can’t HTC pay up theirs. Google said it clearly, Android is free and you can have it, we don’t have patents to back it up.

  • Anonymous

    It will turn into a cross licensing agreement, unless Steve Jobs wants the ITC to rule that Apple can’t sell its products either since they have been found infringing on 2 S3 patents.  Patents which were bought by HTC just a couple of weeks ago.

    • Anonymous

      They want a licensing deal. Then they can hammer Samsung harder using precedent.

  • Anonymous

    Hahaha. Freeeeeeeeeee and open!? Hahahahahahahhahahha

    • KCRic

      Hahaha. That’s what I said about your mouth right before that bj you gave me! Hahahahahahahahaha

      • Anonymous

         KCRIC you killed it man..Nice one hehe funny comment i like that…Now Scroat go run along back in your mothers basement and play with your itoy like a good little bitch you are….Most annoying troll ever on this site..you should be banned..lol FACT..

        As for the HTC vs Apple right here we go again. No matter what happens Google will still have android running the competition will still be out there and when we have end of the year the new super cool Kal-El phones out Apple will still be how can i put this a year behind in their technology. Hence with their notification system.

        Android a year ahead over apple. Since the start of the year dual core android phones have been out. Where is dual core iphone? Quad core phones end of the year ie new Nexus phone were will be the iphone? oh yeah dual core still..Nuff said

        Iphones are good great do not get me wrong beautiful apps more quality for sure than android but android is getting there and hardware and spec wise ten times better than iphone. oh and just so you idiots from the other side of the Atlantic want to know android is the marketing leader in Europe and android is the leader over here in the mobile phone area over here..

        FACT..

        PS SCROAT YOU SUCK

      • Anonymous

        What do you need a quad core phone for again? Oh that stupid game they showed off. What makes anyone think the kal-el will be any better than the terrible tegra 2

      • Anonymous

         to proof2006. its all about moving forward with the technology. and that is were android is always one step ahead of apple. simples..

      • Anonymous

        you want some ice cream on your face? vanilla?

  • ApplevsHTCvstheWorld

    Sigh. You had one  judge make a ruling that the entire board will then rule upon…the ITC in general didn’t make this finding and it’s the end of the road. I know you all hate anything that isn’t Apple but writing editorial mistruths like this is nearing libel, stock prices moving around based off speculative editorials like this tend to raise the eyebrow of board members, who in turn make inquires into the SEC to make sure there aren’t any financial ties to the opposition…are your books sound there BGR and no kick backs of any sort from companies that feature fruit in their name? 

    To the trolls who keep beating the drum to the “patent is infringed, Apple wins” tune you have no clue how the US patent system works. Both patents are vague and overly broad and if the the entire board agrees on the position of the one judge, then a civil suit against Apple will be brought by HTC to determine if the patents are indeed valid. Even if the ITC rules that the patents stand, HTC infringed and they need to cease product shipment to the US within ex days or make a change,  HTC simply makes a software change and life resumes as normal, another civil suit is filed and the legal circus goes on. If the board rules that the patents aren’t valid, then Apple files a civil suit in US courts…you get the idea. These things take years to play out, rulings like this are minor bumps in the road. Please don’t feed into the Apple biased hysteria that Boy Apple Reports spits out and try to keep an open mind yeah? For people who love to pat themselves on the back as being so much more well informed the Apple fanboy crowd is far more quick to jump on a bandwagon without knowing anything about said wagon or what direction it’s going. 

    • Anonymous

      BGR isn’t an analyst, isn’t under the authority of the SEC, and is merely quoting analysts and business periodicals. 

      And the ITC carries a lot of weight, and generally take less than a year. Judges tend to defer to other judgements, as a precedent is set. Appeals courts usually look to see if the case was handled correctly and the law correctly applied, not re-deciding all the facts. 

      Also, the people at FOSS Patents feel that it would take more than a simple change of software code, as it appears to be at the core of Android.

  • http://pulse.yahoo.com/_AOFZNUYIFIO2XBZ7RLBX7IZUAU ArturoB

    The share price drop probably just reflects the increased short term legal costs that HTC is now more likely to incur in fighting this nonsense.  Apple seems to be the company that is really scared here – using the legal system as a mechanism to shut out competition is a sign of weakness and a huge red flag.

    • Anonymous

      Because Apple is so weak.

  • Bringit

    Cheaters never prosper!  

  • http://twitter.com/cdoruff Collin Doruff

    HTC will do FINE. Stocks are just about money. People see them loose the lawsuits, the know others will sell, they dont want to loose money, they sell first. Thats the market. People havnt lost hope in HTC, because I remember when HTC came out of nothing and blew Motorola and Samsung away with their first smartphones.

    • Bringit

      There are so many things wrong with this post, have no idea where to even begin.  

    • Anonymous

      Holy crap Collin, I gave u credit for being semi intelligent but when u can’t even spell the word lose??? Wtf? Don’t claim it’s a typo. U did it twice. What makes it worse is I know u were called a loser your entire life. Jeez bud. Ummmm ur dumb. true story™©®

  • GZ

    If everyone starts losing lawsuits to Apple it will destroy the consumer’s choice for a decent and competitive alternative to Apple products. The so called “Government” will eventually have to look at Anti-trust against Apple. They can’t own every patent.

  • Shankapotomus

    There is a small part of me that hopes apple gets there way by suing away the competition so all the apple fanboys will finally get to see the type of company that everyone else knows apple really is.  Take away the competition and Apple will bend over and absolutely rape its customers.  If apple gets its way look forward to iphone priced higher than ipads and ipads priced higher than a macbook pros.  All the while refusing to innovate anything.  If it wasnt for competition from android and the likes your fisher price ios wouldnt even have freaking wallpaper or whatever your fake version of multitasking is.  Competition is good for everyone and apple fans have benefited as much as anyone from it. 

  • Anonymous

    LINE EM UP!!!! KNOCK EM DOWN!!!! android will be dead in two years  true story™©®

    • Shankapotomus

      and for users of ios that would be the absolutely worst thing that could possibly happen.

      • Anonymous

        Yeah yeah yeah. Same story. Without competition apple will have no reason to
        innovate blah blah blah. Let’s be realistic here. Someone would fill the
        vacuum.  true story™©®

      • Anonymous

        Plus Apple don’t need anyone to innovate. Apple competes only with Apple. They work hard to make their products better. The only product knocking down the iPod is the iPhone made by Apple.

  • Anonymous

    Since when is 3.9% a tumble?  Sounds like someone is resorting to scare tactics to get headlines.

  • claudiomeardi

    haha apples got nerve, sueing htc for android os related stuff supposedly taken from iOS considering all the so called “new features” from iOS 5 are taken from android

  • http://pulse.yahoo.com/_FCAHRME4VEZJ6VHOAK2GIJ2ENY Elaine Morin

    I paid $32.67 for a XBOX 360 and my mom got a 17 inch Toshiba laptop for $94.83 being delivered to our house tomorrow by FedEX. I will never again pay expensive retail prices at stores. I even sold a 46 inch HDTV to my boss for $650 and it only cost me $52.78 to get. Here is the website we using to get all this stuff, LiveCent.com

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