HTC One Gets Into Trouble With Nokia's Lawsuit


Bangalore: Nokia had successfully won a lawsuit against its rival HTC in a case that accused supplier STMicroelectronics (ST) on selling microphones to HTC One, which were invented and manufactured exclusively for Nokia.

The court has ordered ST to stop supplying the microphones to anyone else apart from Nokia, with a failure causing a penalty of fifty thousand Euros ($65,000) per microphone delivered with a maximum of one million Euros.

Nokia said in a statement that "HTC has no license or authorisation from Nokia to use these microphones or the Nokia’s technologies from which they have been developed."

The global injunction will last until March 1, 2014, or both parties should come to a mutual agreement. The verdict comes as a major setback for HTC, as the company is all set to roll out its latest flagship, HTC One worldwide.

"HTC is disappointed in the decision. We are consulting with STM and will decide whether it is necessary to explore alternative solutions in due course. In the meanwhile, we do not expect this decision to have any immediate impact on our handset sales." HTC said in a statement.

According to Pete Cunningham principal analyst at Canalys, “The decision is worse for ST, if HTC wasn’t aware of the deal between ST and Nokia; it may end up paying compensation. The bigger issue though is how other suppliers are going to look to ST. The courts’ decision is not going to do very much good to ST’s reputation in the market,” he added.

Meanwhile, HTC’s rivals Samsung and Apple are giving a cut throat competition making difficult for the company to increase its revenues. On the other hand Nokia is struggling to overtake BlackBerry.

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