Business, Hardware

HTC Not The Target of Dutch Injunction Ruling, STMicro Violated Nokia Agreement


According to the Taipei Times, HTC faces no threat of injunction in the Netherlands with their new HTC One. Earlier in the week, a ruling had been passed down that Nokia had won an injunction against HTC in regards to a microphone component in the HTC One that was Nokia’s IP. However, HTC was not aware of the fact that the distributor, STMicro had actually entered into an exclusivity agreement with Nokia for one year regarding this IP. Furthermore, the injunction would not prevent HTC from using the components already purchased from STMicro in their phones.

Nokia was granted a preliminary injunction to prevent STMicro from selling additional key microphone components to HTC. This injunction will not prevent HTC from selling phones in the Netherlands nor disrupt the supply of these phones, however HTC will likely have to find alternative parts to their microphone for future BOMs of this device to resolve the component conflict.

Both Goldman Sachs and JPMorgan expressed that they did not expect the injunction to affect HTC’s sales of the One, especially considering that HTC should be able to find a backup solution fairly quickly. Nobody builds an electronic device without multiple BOMs to adjust for issues like this. If HTC is not prepared to change the components in the microphone, then they have both an engineering problem AND a management problem. However, HTC’s willingness to cooperate fully indicates that they are quite ready and capable of complying with Nokia’s demands.

As I hold my HTC One in my hands, I can definitely say that HTC has done a fantastic job with the device and you can read my review here in the coming weeks. There is no doubt that this is the best phone that HTC has ever made and it looks like it’s being well received across the globe. Hopefully HTC can be allowed to continue to be successful with minimal legal challenges so that we can have an additional challenger in the Android space to promote more competition and better features and pricing.