Apple Win HTC Patent Ruling: Shares Fall 7%

We brought you the news recently that Apple had filed a complaint against HTC to the international trade commission over a number of patent infringements. A ruling has been made in Apple’s favor and it seems that HTC will now have to compensate Steve Jobs and co. Apple recently lost a ruling against Amazon so they will be satisfied that they have won one.

Apple had accused the HTC Desire and HTC Sensation smartphones of infringing on a number of their patents. The US court ruled that HTC was indeed guilty of infringing on 2 of Apple’s patents, when it produced mobile phones based on the Android operating system, BBC News reports. It has been confirmed that HTC will be appealing against this decision. The Taiwanese manufacturer stated it would fight to defend its intellectual property.

Not only has this ruling damaged HTC’s reputation and future trading rights, but also their shares. The mobile giant’s shares plummeted by as much as a reported 7% today when the news broke. It looks likely that HTC will be ordered to pay royalties to Apple every time they sell a device that is patent infringing. HTC also have to pay Microsoft $5, each time an Android device is sold.

In a bid to save their shares from completely collapsing, it was been reported that HTC will buy back a large quantity of their own shares. According to Tech Radar, they will be re-buying nearly 2.5% worth which is 20 million shares. HTC will purchase them back from between 900 Taiwanese dollars and 1,100 Taiwanese dollars per share. The trading of HTC’s shares closed on T$871, so it looks like they will pay over the average to guarantee securing them.

Things could get worse for HTC, if the International Trade Commission do not overturn their decision from an appeal, then HTC could face a ban on imports. Apple attempted not only to report HTC to the ITC over patent infringement, but also to get a US shipping ban, it was not granted but could be eventually should the courts continue to rule in Apple’s favor. This huge comes after HTC’s record profits.

If however HTC win their appeal, then they can counter-sue Apple for a huge amount. So far this ruling has caused enormous problems for HTC, with Apple also examining their HTC Flyer to see if it infringes on their own iPad patent. You may be aware that last year it was HTC trying to sue Apple over patent infringement in an amazing turnaround of events. How significant will this ruling have on HTC and their future?