Updated:2010/3/3 09:18
Apple Inc., the maker of the iPhone, filed a patent-infringement complaint seeking to prevent HTC Corp. from importing mobile phones into the U.S. that run on Google Inc.’s Android operating system.
Apple said it filed the complaint today with the U.S. International Trade Commission in Washington, claiming infringement of 10 patents related to the implementation of operating systems. In a lawsuit filed in federal court in Wilmington, Delaware, the company claims infringement of 10 other patents, including one for technology that lets people work the phone by touching the screen with their fingers.
Apple is stepping up efforts to enforce its patents as competitors such as HTC and Nokia Oyj fight for smartphone customers. Apple, which last year made $13 billion, or 30 percent of its revenue, from the iPhone and related services, is already in a patent fight with Nokia over its use of mobile- phone technology.
“We can sit by and watch competitors steal our patented inventions, or we can do something about it,” Apple Chief Executive Officer Steve Jobs said in a statement. “We’ve decided to do something about it. We think competition is healthy, but competitors should create their own original technology, not steal ours.”
Cupertino, California-based Apple claims that HTC is using Apple’s proprietary iPhone technology in its phones without permission. HTC has said it aims to be among the top three smartphone makers in the world by 2013.
10 Patents
The 10 patents in the ITC case “generally relate to software architectures, frameworks and implementations, including various aspects of software used to implement operating systems,” Apple said in the complaint.
HTC, based in Taoyuan, Taiwan, is the biggest maker of handsets using Microsoft Corp.’s Windows and was the first to offer a handset based on the Android operating system, releasing the G1 through Deutsche Telekom AG’s T-Mobile USA wireless unit. The company also manufactures Google’s first phone, the Nexus One.
The company will release at least two more Android-based phones this year and more than two that use Windows, Chief Executive Officer Peter Chou said last month in an interview.
The companies are competing for share in the market for smartphones, which have more-advanced operating systems to allow for Internet access and downloading games and videos. Smartphone shipments are expected to increase 46 percent this year, according to market researcher Gartner Inc. Overall handset sales are forecast to rise 11 percent to 13 percent.
Smartphone Market Share
HTC’s global market share rose to 6.9 percent of smartphone sales last year from 6 percent in 2008. That made its phones the fourth most popular. Apple, in third place, increased its share to 16 percent of the market from 11 percent. Research In Motion Ltd.’s share was unchanged, while Nokia, the No. 1 smartphone maker, lost market share.
“It’s about differentiating your own offering, keeping Apple as a really special brand experience,” said Carolina Milanesi, research director of mobile devices for Gartner in Egham, England.
Apple also is embroiled in a patent dispute with Nokia, the world’s largest maker of all types of mobile phones. Each has accused the other of infringing patents, and the ITC is investigating complaints that could result in import bans.
Lawsuit Accusation
Separately, in a civil suit that Nokia filed in Delaware, Apple accused Nokia of trying to force a cross-licensing agreement so the Espoo, Finland-based company could get access to iPhone technology. In a Feb. 20 filing, Apple said it doesn’t want to license any technology “that would enable Nokia to try to develop products with features now unique to the iPhone.”
The ITC is a government agency that investigates claims of unfair trade practices, including patent infringement. It has the power to order a ban on imports if a violation is found. It typically takes about 15 months to complete investigations once it agrees to look into a complaint.
Companies often file complaints in both the ITC and district courts. The ITC can act more quickly than a court, and its power to ban imports is often more important in a rivalry than the cash damages possible in a civil case.
“HTC only learned of Apple’s actions this morning via media reports, and therefore we have not yet had the opportunity to investigate the filings,” Linda Mills, a spokeswoman for HTC, said in an e-mailed statement. “Until we have had this opportunity, we are unable to comment on the validity of the claims being made against HTC.”
Google Spokesman
Andrew Pederson, a spokesman for Mountain View, California- based Google, didn’t immediately reply to an e-mail seeking comment. Google isn’t named in either of the complaints.
Apple fell 14 cents to $208.85 in Nasdaq Stock Market trading. The stock has more than doubled in the past 12 months.
The Delaware case is Apple Inc. v. HTC Corp., U.S. District Court, District of Delaware (Wilmington). The ITC complaint is In the Matter Of Certain Personal Data and Mobile Communications Devices and Related Software, 2715, U.S. International Trade Commission (Washington).
source:bloomberg
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