In December 2013, the court of appeal in the United Kingdom allowed HTC to avoid a sales ban for some of their best-selling phones. This came after the court halted an injunction which was brought to the table by Nokia regarding what they believed to be patent infringement. However, the arguably bigger decision is still yet to come. If the court decides that the patent in question is in fact valid, then HTC may end up having to pay Nokia millions of dollars for products they have sold in Europe. The decision will likely come in the next year. For now, HTC is trying to design their new products so that they don't infringe upon Nokia's patents and have to face similar lawsuits in the future.
This decision is crucial, as Europe has become the major market for both companies following their recent struggles in the United States. Although this is only one of many court battles over Nokia's patents, each one has become very important. For HTC, they need to keep their handset sales high to keep sustainable levels of market share. But, according to Nokia, these handsets are allowing HTC "to benefit from its unauthorised and uncompensated use of Nokia inventions." This decision could change the trajectory for both companies, specifically in their European markets.
This decision is crucial, as Europe has become the major market for both companies following their recent struggles in the United States. Although this is only one of many court battles over Nokia's patents, each one has become very important. For HTC, they need to keep their handset sales high to keep sustainable levels of market share. But, according to Nokia, these handsets are allowing HTC "to benefit from its unauthorised and uncompensated use of Nokia inventions." This decision could change the trajectory for both companies, specifically in their European markets.
Through this post, I think it's interesting that you recognize the impact of the court appeal for the company in the upcoming years. Going back to the age old question - what is the purpose of protecting intellectual property? It isn't supposed to be to hand companies the ability the weapons to demolish their competitors, it is to encourage innovation. Yet, based on your post and the majority of other posts, patent wars have mostly resulted in hindering the trajectory of tech giants.
ReplyDeleteGiven that both Nokia and HTC are both relatively small players in the smartphone manufacturing market, you'd think that it would be in their best interest to collaborate and help each other rather than squabble and hurt each other. This sort of mindset is what is causing the larger manufacturers to take over the market.
ReplyDeleteVK, in response to your question of why we should protect intellectual property, I think the purpose is twofold: 1) to allow for compensation if someone uses something that was originally your idea/invention but more importantly 2) to encourage innovation and improvements from the competition.
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