HTC has backed away from appealing against an injunction banning sales of the its 3G devices in Germany, increasing the number of banned mobile electronics products in the country.
IPcom Technologies filed a lawsuit against HTC for several patents and secured a favorable ruling from a German court over HTC infringing a specific patent that involves an algorithm for user priority assignment, claiming that the patent is present in devices worldwide.
Earlier, HTC planned to present an appeal to the German court but suddenly pulled out ahead of Monday’s decision, which only means it was dubious on the result of the action.
IPcom Technologies Managing Director Bernhard Frohwitter reacted to HTC’s decision and said, “Apparently, HTC has accepted it had no realistic chance of winning this case – the courts have clearly established that HTC has been infringing our patents and now given us the means to put a stop to it.”
He added, “Since HTC has never to come up with an offer that adequately reflects the value of these patents, IPCom has been left with no choice – we will use the right awarded by the courts, likely resulting in HTC devices disappearing from shops during the crucial Christmas season.”
IPcom, however, is not stopping with the court’s decision on the HTC case, following up on similar injunctions to ban sales of several Nokia products for patent infringement.
The intellectual property firm claimed that the same German court and judge is handling the case, highly indicative of gaining a similar decision against Nokia devices.
IPcom currently owns an extensive patent portfolio from German electronics firm Bosch, which sold its patents in 2007.
Ever since closing the deal, IPcom has tracked a list of companies that it believes is using its patented technologies, reaching licensing agreements from most companies but not HTC and Nokia, both of which turned down an offer to sign a deal.
HTC has yet to reveal its next step in an attempt to stay within the lucrative German market and dodge the sales ban.
It may consider following Samsung’s decision to modify infringing products in Germany, or try to come up with a good licensing agreement with IPcom, which should cost more than it asked for before filing the case.
Last week, Joaquín Almuni, EU Competition Commissioner, showed concern over injunctions to ban products, bringing up the case of Samsung and Apple that ended up with the Samsung Galaxy Tab 10.1 injunction in Germany, and HTC’s case is no way different from it.
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