HTC CEO says Apple lawsuit won't put company in 'dangerous situation'

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HTC’s CEO Peter Chou spoke with investors recently and promised that its ongoing patent battles with Apple will not hurt the company. “Many lawsuits nowadays are results of being successful; it’s part of the business,” Chou said. “We will not bring the company to a dangerous position.” Earlier this month the United States International Trade Commission ruled that HTC was infringing on two of Apple’s patents 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.” In addition, the ITC ruled that Apple’s Mac OS X operating system is infringing on patents owned by S3, which HTC acquired on July 6th. The ruling against HTC could spell danger for Android makers, as the patents are believed to be largely important to the operating system. Google has said that it is standing behind HTC and its other Android partners, however, and it was revealed on Friday morning that it recently purchased 1,030 more patents to help it go to war with competitors.

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54 Comments
  • Fat Mams

    Although patent laws are completely outdated, Apple is abusing the system here to stifle innovation to stay on top.

    • http://www.mcpaco.com friedpaco

      i disagree. its not only apple suing people, everyone is suing everyone. think rim, palm, google, apple, and all those patent trolls. its part of the business. because apple is winning doesn’t mean they are abusing the system. they have lost their fair share of patent suits as well. it does help to have cash reserves like they do however…

      • Anonymous

        Apple is not winning.  

      • Anonymous

        How are they not winning?

        The ITC says HTC violated 
        HTC says they need to work it out with Apple.

        Once Apple and HTC come to terms then every other Android manufacturer has to also.

        $76 Billion in the bank doesn’t lie.

      • Anonymous

        What — if anything — Apple ultimately gets from HTC will not even be a drop in the bucket compared to the already signed deal in the patent litigation lost to Nokia. In other words, it is all relative. If you’re paying out $100 and taking in $3 you’re hardly “winning”.

      • Anonymous

        Apple is definitely winning!! HTC will want licensing & Apple will definitely NOT give it to them. This will force HTC/Android to remove specific coding from their OS software, possibly crippling the usefulness of the OS, which will eventually affect all of the other OEM’s using Androids OS (Motorola, Samsung, LG, Sony, Acer, Asus, etc.) All these companies should be looking forward to a lawsuit in the future, that they will most likely lose. Just another example of terrible leadership at the management level. These companies were too used to being sloppy in the consumer market where customers would buy anything, knowing that it was priced reasonably enough that it didn’t matter how bad the product was. Now, consumers are much more picky & a lot smarter. They just want products that “work” & last long! That leaves all of thee above out in the cold!

      • Anonymous

        Yeah, go with that.

    • Anonymous

      Actually Apple is playing by the same set of rules as every other business….

      In 2007 when they launched the iPhone Apple gave out the warning.

      “We’ve been pushing the state-of-the-art in every facet of design… We’ve been innovating like crazy for the last few years on this and we’ve filed for over 200 patents for all of the inventionsin iPhone. And we intend to protect them.” –Apple CEO Steve Jobs when unveiling iPhone, January 9, 2007

      Apple gave out the warning, if you want to be pissed about something be pissed at the companies that didn’t take them seriously.

      • http://twitter.com/mayrashid May Rashid

        Amen

    • Anonymous

      while it’s not immediate, it’s proof that they’ve become monolithic. Any company that starts suing to prevent innovation means they know they’re on an incoming downhill trend.

    • http://rmbo47.myopenid.com/ rmbo47

      Did Apple cry like a bitch when they lost to Nokia and had to settle? No. They acted like adults and moved on. HTC should take a lesson from that. Man up and get to work.

    • Chargerman165

      You are correct sir!!!

  • Anonymous

    The worst part for HTC is that those patents relating to S3 were found by the USPTO to be invalid because of prior art on July 1st. Then five days later they purchase S3. Hopefully for HTC that invalidates the purchase of S3.

    As soon as HTC works things out with Apple (AKA, pays the penalty) then every other Android OEM will have to also. Then once those ducks are lined up Apple will go after Google and there will be nothing Google will be able to do about it.

    Game, set and match.

    • Anonymous

      Studying law ?or maybe you can see the future !

      • Anonymous

        Just keeping up with current events. I like HTC, they are one of the few companies outside of Apple that actually try to create a better product each and every time out. HTC faces the same problem as everyone else though, shrinking ASP’s. You can only really differentiate your product from other Android manufacturers with price. At this point the carriers hold all the cards because there are so many different Android handsets to choose from. The carriers get to dictate how much they pay per device, the OEM’s literally have no leverage. Apple, they have all the leverage and the carriers have zero. The carriers can only get the iOS devices from one company, Apple. Apple’s ASP’s have been exactly the same since the iPhone launched. Their quarterly reports show that Apple has never cut their selling price to the carriers.

        I hope HTC and Apple can come to an agreement.

    • Anonymous

      Road map to victory. Apple will rule the world  true story™©®

      • Steve Jenkins

        Ms. Cleo! Is that you?!

      • Anonymous

        Scroat > Nostradamus true story™©®

  • Anonymous

    Uhhhh according to your reporting of his words. He states ” we will not bring the company to a dangerous position” that to me doesn’t mean the company is not in a dangerous position. To me it sounds like he is saying “apple has us bent over grabbing our ankles waiting for the ass fucking of a life time. We will abandon android faster than a 14 year old crack head hooker abandons her baby” HTC is going to go windows os. Android will be dead in two years.  true story™®©

    • http://www.20b.org/rickroll.html Laurențiu Roman

      i’m not sure they’ll abandon their top selling OS for a Windows platform that currently has a lower footprint then Windows Mobile (6).

      • Anonymous

        Android will be dead in two years.  true story™©®

      • Anonymous

        You are so butt hurt.

      • Anonymous

        Feel free to do a tongue tour of my anus.

      • Anonymous

        Why is it top selling? Why is WP 7 doing so poorly? No support from carriers or OEMs that is why. 

        I would love some competition in the OS depart, I would love to see equally desirable WP 7 handsets to the Androids. Maybe knocking some of these OEMs off the Android train will be just what the doctor order, for me anyway not the Fandroids that want to see Android & Google (privacy invaders) rule the world and become the Windows of the smartphone market.

    • Anonymous

      You my friend……funny guy. 

    • Anonymous

      As Apple’s newly hired CtO, Chief tAmpon Officer, we here at Apple are appalled at how Scroat aka Scroaty-ca-ca aka PAPINYC iMpersonator represents us with such a riGorous appetite for butt f★cking and ass l¡cking. We, here at Apple, although we encourage freedom of expression and exploration through our iHommo button, simply abhor his incessant soliLitation for gay sex.

      At the same time, we must express our deep disappointment in Mr. Chou’s Chop Suey recipe.

      Finally, as CtO, I implore you to always remember that, sometimes a tAmpon pullstring isn’t just a pullstring; sometimes, it is also a safety protocol.

      Sincerely,
      PAPINYC, Chief tAmpon Officer

      [True Story]

    • Theojohn142

      Apple is going after Windows OS too. One or two of the HTC phones said to be in violation are Windows phones.

  • Anonymous

    Patent litigation is a cost of doing business.  People on tech blogs make way too much of this stuff.  For example, Apple willfully infringed Nokia GSM patents and that did not stop them from selling a gazillion phones and tablets.  This litigation is 1/100 as important.

  • Bringit

    He’s probably correct.  The lawsuit will not put HTC in a dangerous position.  But HTC’s decision to get in bed with and bet their company on Android, certainly has and will put HTC in a dangerous position.

    • http://twitter.com/shawnwill16 shawn williams

      i guess your in a dangerous position when every quarter your breaking your previous sales and profits records…man you guys are some savvy business people….

  • Anonymous

    HTC will not be an Android OEM vendor in the next year.  They’re going to shift 100% to WP7.  Mark my words.  Android litigation is not worth the headache.

    • Anonymous

      I don’t know about that. Certainly HTC will continue as long as they can come to an operating agreement with Apple. Although, if all Apple’s wants is to shut down Android then certainly HTC will know before anyone and by way of HTC shifting entirely to WP7 we will all know in return.

      • Anonymous

        If Apple wants to shut down Android?  You guys really are too funny.

      • Anonymous

        Who are “You guys”?

        I am fine with companies legally gaining an upper hand but if you are illegally using someone else’s IP then you should pay what ever the penalty is. Each and every time Apple is forced to pay some company because they are illegally using their IP I applaud it. Just because they are Apple doesn’t mean that they have to play by the rules too. 

        If HTC wasn’t doing anything wrong the ITC would have said that. If HTC wasn’t doing anything wrong then HTC wouldn’t have come to the conclusion that they need to work things out with Apple.

        Just because HTC paid $300 million for S3 five days after S3 patents were ruled invalid by the USPTO because of prior art is no reason to be upset we “You guys”.

        Spend time building your own hardware and software and then you will enjoy the benefits.

      • Anonymous

        Hah, I’m not angry about anything. I’m saying your statement implying Apple could shut down Android is ridiculously naive. The Apple patents being litigated with HTC are relatively minor. Moreover, patent litigation is an ongoing cost of doing business for technology companies. They budget for it.

        And “you guys” are the people trying to make this litigation with HTC into an Android killer. It just shows you have no idea what you’re talking about.

      • Anonymous

        What’s funny is u calling people naive and saying the HTC patent violations are minor when plenty of people who are more knowledgeable about patent law than you state that this could have HUGE repercussions for every other android manufacturer and google.

      • Anonymous

        Apple willfully infringed on Nokia GSM patents when it created iPhone. When Nokia began litigation, “knowledgeable” people — tech blog writers and under employed lawyers — made the case it was going to be HUGE. It was supposed to be be the end of iPhone. What happened was iPhone then went on to absolutely dominate Nokia in smart phones. Did that patent infringement in any way deter Apple from selling iPhones? I mean, if ever there was a company with a fundamental interest in “shutting down” Apple’s smart phone it should have been Nokia, right? Was Nokia able to do that?

        “Knowledgeable” people on the Internet are always saying this and that is going to be HUGE. That sensationalism is how they garner attention. Predictably, people like you — those desperate for supposed unmotivated opinions to support their own beliefs — gravitate. Before you deem anyone to be “knowledgeable” my suggestion to you is that you do a little research to determine if these people have been correct about predictions in the past. Good luck.

      • Anonymous

        Apple doesn’t need their money & they will never license out their software or IP to anyone! Never have, never will! It’s in Apple’s best interest to crush the so-called “competition” NOW! Accepting money from any of these companies is equal to walking backwards for Apple. All of the top companies combined (except for Google), couldn’t even join with Apple to by the Nortel patents the other day. Apple payed more than half of $4.6B price tag in the deal. They don’t need anyone’s money!

      • http://twitter.com/shawnwill16 shawn williams

        and google could have bought all of it…thats why apple rounded other companies up to go in jointly…..

    • http://www.mcpaco.com friedpaco

      This is an interesting hypothesis. I’m not sure it’s necessarily true for several reasons:
      1. With Nokia getting behind WP7 it will be even tougher for HTC to make standout products against a name like Nokia.
      2. HTC has invested a lot of time and MONEY into Android so far. The sunk cost at this point is probably too much to turn away from.
      3. With google behind them, HTC has deeper pockets and more protection.

    • Anonymous

      You’re clearly seeing things clearly! lol! Android OEM’s are in for a world of hurt! Also, with there downslide in sales, they’ll feel Apple’s ever tightening noose around their necks getting even more uncomfortable. Soon they’ll realize they don’t have the capital to go toe-to-toe with the company carrying the largest moneybag in tech. Tick tock! lol

  • Anonymous

    If you can’t compete with a competitor, try option number two: Find a way to shut them down.

    • Anonymous

      They did try, HTC was proven to be illegally using Apple’s IP. HTC attempted to best the beast and they just got caught in the process.

    • Anonymous

      Rub your eyes if that’ll make it better, then focus on the picture!! HTC is clearly NOT competition for Apple. They warned companies to not steal from them & now they’re following through with that warning! Like I said in the past, Android OS is not competition. In a race, there would never be 1 runner from Canada vs. 8 runners from the U.S.! When “Ice-Cream Sandwich” is released, the Android OS becomes totally irrelevant!! I know NO Android fanboy wants to here this, but iOS (iPod Touch, iPhone & iPad) have more users & sell more units than all Android OS devices combined. So enjoy that tiny lead while you can! Come fall, things are going to change instantly.

      • Anonymous

        Android is not competition for Apple?  You’re in complete denial.  The reason Apple, Microsoft and soon Nokia are suing is because they’re getting their lunches eaten by Android.  Android went from less than 2% market share four years ago to 38% and rising. They’re trying any and all methods to slow down the rate of adoption for Android.  Apart from that, the rest of your post is incoherent… and terribly flawed.

        The reason Android is winning is consumer electronics firms must build mobile computers (handsets).  They need to make certain they have a foothold in that market as that is the future of consumer electronics.  They can’t build Apple iOS based devices.  They can’t build RIM OS based devices.  They can build Windows OS devices but many are reluctant to repeat the WinTel experience in desktop computers where their products essentially became commodities and they couldn’t make any money.  So, they are left with Android by default.  What they will do is continue to build unique user experiences (skins) atop Android because they have no other choice.  And, quite frankly, it is good business. 

        Android is absolutely competing with iOS and it is winning.

      • Anonymous

        I think you need to do a little more research. 

        Android devices are already commoditized. That is why their ASP’s are so low.

        Where is Android winning exactly? Apple went from taking home 50% of all mobile profits last year this time to now taking home 66.30% of all mobile profits.

      • Anonymous

        You’re wrong.  Apart from that, you’re making a classic error made by people with only half of the facts.  First, average selling prices are lower for Android because there are more varieties of devices using the Android OS.  Some of these are entry level devices, others mid level devices.  Second, it depends how one defines “mobile”.  Apple is careful to define a “mobile” device as anything that runs iOS while most people would make the case mobile devices must have at least a 3G radio.  This distinction eliminates the vast majority of iPads and all of the iPods sold.  When you do that, your numbers don’t hold water.

        All of that aside, we’re talking about patent litigation, where Apple, given the Nokia judgement, is clearly losing.  I’m okay with you changing the subject to something you feel you can win.  I just want you to be aware that I know you’re trying to change the subject.

      • Chargerman165

        TheNewReign sounds like a Steve Jobs clone and they want to reign. Guess he is an Apple fan. Who would have thought. You know the old saying that Eve fed Adam an apple and he bit into it and for give me but “all hell broke loose”. Sorry couldn’t resist. I just can’t stand Apple products myself. My kids like them but they are young and don’t know any better. 

      • Mobile-guru

        you are too obsessed with IOS , You apple fanboy’s are too snobby. wait and time will tell you wins and who losses. Since apple doesn’t like freedom on their OS they will eventually fall down one day.  In other side windows OS and android will definately grow year by year untill apple finds themselves in same situation like blackberry !!! 

  • Chargerman165

    Steve Jobs is not good for the economy and I guess he doesn’t care since he has all that money. If he succeeds in the patent war and put company’s out of business they have to lay off people. More unemployment and less people to buy the iSuck phone. Steve wants to control. Let me explain. I had the iPhone and the iPad. Did not like either. Only good thing about my iPhone 4 is that when I sold it I made $100 profit. He has them locked down and you can’t do anything with them except what he says you can do. Let me say that IMO iPhones are for dummies because they are simple. The same apps I get for free on my 2, yes 2, HTC Thunderbolts I had to pay for with Apple. I have less trouble with the HTC products than I did with my iPhone and iPad and the Tbolts work great and I can make them look however I want. It is my choose and not Steve’s. Oh yea and by the way the phones are mine once I paid for them not his. Apple needs to quit with the nonsense before that hurt the economy even more. I would go back to a flip phone before I purchase another Apple product including any more songs for iTunes and I really like doing that. With Android I have a choose and isn’t that the American way. Thanks for listening and now I have had my say.That’s MO.

  • Anonymous

    apple is gonna be the boy who cried wolf

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      Could you elaborate?

  • Anonymous

    Android sucks ass.

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