Apple patent ruling sees HTC shares drop
18th Jul 2011 | 08:19
ITC's decision hits Taiwanese giant
HTC's shares have tumbled following a US ruling that the company has infringed on two Apple patents.
The Taiwanese mobile phones giant announced that they would be buying back nearly 2.5 per cent of its shares, but the news did not stem the drop.
This was caused by the US International Trade Commission decision that HTC had infringed on two patents.
HTC's response was to announce the buyback scheme and to point out that the ITC had already ruled that Apple has infringed on patents of S3 Graphics – recently acquired by the Taiwanese company.
According to Reuters, shares fell by a whopping five per cent, which was compounded by a fall of 16 per cent in the previous nine trading days.
The legal action over various patents has reached ludicrous levels between the various handset manufacturers, with most of the main players suing or counter-suing their rivals.
The impact of this case could apparently see HTC forced to pay significant royalties to Apple per handset sold.