HTC has patent piracy
The iPhone rival HTC has trouble: The German patent licensing company IPCom complains that the mobile phone producers to push for royalties. The Taiwanese company threatens nothing less than the import and sale stop its complete range of mobile phones in Germany.
Cell phones are out of our daily lives have become indispensable. In the future we will order, but more than make phone calls, take pictures and write SMS. The next big development step is the mobile Internet. Everywhere surfing, chatting and navigate – the consequences for everyday life will be at least as great as after the introduction of the phone.
In this section applies not only since the HTC Google-phone as a pioneer. Is it possible surfing, e-mail and all the other functions currently only based on the UMTS mobile standard. This is HTC violate some patents, at least this is the accusation of Munich IPCom rights management.
Exactly it’s multiple patents for making phone calls in the UMTS mobile phone standard, which were once developed by Bosch and are now owned by IPCom. HTC denies that it violated the patents, and even doubted their validity. Different view, here were the judges at the Mannheim District Court, the end of February in the case of a patent for IPCom decided. This ruling was enforced in the Munich patent holders and then obtained a sales and import ban for all HTC phones. On the other hand was able to defend successfully and the mobile phone manufacturer is hoping that the judges at the High Court in Karlsruhe allow an appeal.
As always when it comes to intellectual property, the matter is complicated. For the IPCom CEO Gerhard Frohwitter must simultaneously fight the bad reputation in its sector of the patent exploiter. "If somewhere fake Rolex watches are destroyed with a steam roller, then find all the fair", the managing director Gerhard IPCom Frohwitter talking to news.de. "Is it illegal but to use patents, among which many people can imagine not much, then denigrate the infringer the owner of a patent troll."
Patent trolls are gefuchste law firms who take advantage of the difficulties in patent disputes. First they buy specifically to patents, which they consider promising. These patents then they use and not for production or development of new products. Their business model is to threaten to large corporations with lengthy litigation, firms give in to the enervated and solicited out of the action.
"The accusation of patent trolls is wrong and is being exploited by some major manufacturers. It is just like piracy "and patent piracy to chief defends IPCom Frohwitter. His company was a "serious License Manager" for patents. "It is our aim is that patents are respected as intellectual property of the developer of the industry." HTC would not comment on these allegations.
The argument Frohwitters: the big corporations would overwhelm their professional legal services, the patent holder. So it was not only in the case of HTC, but also in Nokia, which is located IPCom since early last year in the dispute. "Nokia and HTC does not provide a fair and objective debate. Instead, Nokia has us covered with about 80 complaints, with the aim of us – like all other intimidate even – by the high costs. "That is why, according Frohwitter a professionalization of the exploitation of rights by specialist companies only logical.
IPCom has acquired the patents from Bosch in 2007. Already in 2000, the German electronics giant decided to leave the mobile phone segment. Of course we wanted to quantify the investment, the Frohwitter to four billion euros, do not write off completely. Probably afraid of the Group and the efforts lengthy patent process, particularly from companies in which it was linked to multiple business areas and in the future must continue to work together.
IPCom CEO Frohwitter knows the patents for years – he has already cared for Bosch. When in 2007 the opportunity arose to acquire the patents, he reached out with financial support from the hedge fund Fortress. By the way, can this engagement of the private equity fund means an indicator of the quality of patents. Typically, such investors examine the companies in which they are active, very closely.
The IPCom boss wants to know the patent disputes with Nokia and HTC, a piece widely understood as a struggle for the business location Germany. "Patents are the most important thing we have in Germany. If we do not come back then to make our inventions to really fully tradable and market, it is an important part of our competitive edge is lost. "
In the compensation due from HTC, the patent exploiter are modest and sees this as proof of being a patent troll. "Our expectation is FRANDSteht for" Fair, Reasonable and Non Discriminatory terms "what with" fair, adequate and translate to all open conditions "can be. It is a system, standardization bodies, the new mandatory standards for the industry choose to be inscribed in contracts with the patent holders. FRAND requires the patent owner, each licensee of its technology standards offer the same conditions. Conversely, try the patent owner to use the scheme to proceed against patent infringement. ", Ie compensation for fair, reasonable and non discriminatory criteria. The amount of the royalties to decide completely transparent arbitration with experts or an experienced court. "Only Nokia and HTC are opposed to this – we are negotiating with other manufacturers or could we agree already." Nor are these allegations did HTC not comment, despite repeated request.
As a guideline refers IPCom on a report which had calculated Nokia once given in a similar case in order. There was FRAND calculated on annual sales, for two fundamental patents we sat together at five percent, a simple, less important patent was worth 2.5 percent. "This report to the court as we scale the port to other Nokia have presented."
Whether there is an appeal decision, probably by the end of the month. IPCom offer HTC to continue a court settlement, the notice. Otherwise they would run through the procedure. The fact that the Munich have staying power is beyond question – after all, they have a potent partner with Fortress.
Because IPCom is right, can be loud Frohwitter not shake anyway. "From our perspective, HTC does not do well if they want to continue the litigation. Of the 100 absolutely fundamental core patents, we own at least twelve, will withstand any test. "The current process would thus be only the beginning. "The risk for the HTC is very high."
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