* Patent firm IPCom asks court to start fining HTC
* IPCom to take retailers to court if they continue HTC
* IPCom won injunction against HTC almost 3 years ago
* Ruling became enforceable after HTC pulled appeal on Nov
By Tarmo Virki, European Technology Correspondent
Dec 6 Patent firm IPCom said on Tuesday it had
asked top German cellphone retailers to stop selling phones of
HTC, threatening them with legal action, as HTC has
not complied with a court ruling on injunction of its sales.
IPCcom also turned to the Mannheim court, asking it to start
fining HTC for not following the ruling from 2009.
Possible fines from the German court could cost millions of
euros and hurt HTC's position in one of its key markets. The
company sells around 2 million smartphones a year in Germany,
some 4-5 percent of the group's total, according to research
The latest battle highlights growing risks for HTC, whose
sleek handsets catapulted it in recent years from obscure
contract manufacturer to global smartpone brand. It is now
grappling with falling sales and an even bigger legal fight with
In the Apple case, HTC faces the possibility of a negative
ruling from the U.S. International Trade Commission which could
result in a ban on smartphone sales in the United States, a
market accounting for 50 percent of its sales. That decision is
due next week.
The ITC's preliminary ruling in July said HTC was infringing
on two patents belonging to Apple, and the full commission
ruling will decide whether to uphold that.
The legal challenges have forced investors to question
whether HTC, which has risen to the No.4 spot in the global
smartphone market, can keep growing.
The Mannheim court ruled in February 2009 against HTC in a
patent fight with IPCom, allowing an injunction against sales of
HTC phones using UMTS technology, and setting a penalty of up to
250,000 euros each time the injunction was contravened.
HTC, all of whose smartphones use UMTS technology, withdrew
its appeal against the 2009 decision last month, making the
original decision enforceable.
A week ago IPCom asked HTC to stop selling and distributing
its smartphones, and on Monday it turned to the court to
implement the sales ban.
HTC says the injunction covers only one HTC handset which is
no longer sold in Germany.
While IPCom hopes for a quick decision in the German case,
patent expert Florian Mueller said it could take months before
the court in Mannheim decides on the request for sanctions.
IPCom is also fighting Nokia over usage of
patents IPCom acquired from Bosch and has since
licensed to several key players of the mobile phone industry.