HTC To Appeal ITC's Decision On Apple Patents
JULY 18, 2011, 7:24 A.M. ET
online.wsj.com
-- HTC says it will appeal ITC's preliminary ruling that it infringed on two Apple Inc. patents
-- HTC says it has a strong case based on the findings of an ITC staff attorney who independently examined the case
-- HTC CFO says company should keep in touch with Apple as proceedings continue
-- HTC hasn't made any changes to its royalties provisions as a result of the case
(Adds CFO's comments on appeal, communications with Apple and royalties in 2nd-3rd, 5th and 8th paragraphs, analysts comment in 4th paragraph.)
By Paul Mozur
Of DOW JONES NEWSWIRES
TAIPEI (Dow Jones)--HTC Corp. (2498.TW) plans to appeal a preliminary ruling Friday by the U.S. International Trade Commission that the Taiwan handset maker infringed on two Apple Inc. (AAPL) patents.
HTC chief financial officer Winston Yung said, "now the course of action is to appeal, we believe we have a very strong case, the attorney agrees with us, and therefore we will appeal."
Yung was referring to the findings of a staff attorney at the ITC who independently examined the case and found the company didn't violate the patents.
Some analysts have pointed out that preliminary ITC rulings are rarely overturned, but the finding by the staff attorney raises the possibility that the Taiwanese handset maker could have a chance in appeals.
Yung said the company hasn't ruled out other pursuing other types of solutions, and added "if the parties want to talk, we can talk anytime...I think in cases like this, you should keep in touch."
Regarding a statement the company put out over the weekend saying it had "alternate solutions" to the patent-infringement issues, Yung said the company believes it can find a technological work-around to avoid violating the two patents in question.
Yung also said HTC hadn't made allowances for new royalties, adding the provisions the company has already made are appropriate.
"We have no plan to change our policy or specific numbers at this point...[thus far there has been] no effect on our profit and loss balance sheet," he said.
-By Paul Mozur, Dow Jones Newswires; 886 2 2502 2557; paul.mozur@dowjones.com |
