HTC loses Apple patent case

Washington:  HTC lost a patent-infringement claim against Apple at the US International Trade Commission, the first of the Taiwanese handset maker's cases targeting the iPhone.

Apple didn't violate a HTC patent for controlling how mobile phones manage power supply, the Washington-based commission said on Friday. The ruling completes a review of an October finding by an agency judge, who had determined that Apple devices didn't infringe HTC's intellectual property.

The case is part of the global battle for the smartphone market, which grew 55 per cent in the fourth quarter according to researcher IDC. Apple and HTC are among device makers seeking an edge by pursuing patent claims against competitors in courts in the US, Europe, Asia and Australia.

"HTC is not having much luck in their cases and their performance in the market is taking a hit," said Will Stofega, an analyst with IDC in Massachusetts. "At the end of the day, this is an elongated battle that seems to be going a little bit better for Apple than for Android."

HTC has fallen 37 per cent in Taipei trading in the past year as competition from the iPhone and Samsung's Galaxy models cut into its market share.

Appeal considered

"We are disappointed by the commission's ruling, and look forward to reading the full opinion to understand its reasoning," said Grace Lei, HTC's general counsel. "We'll explore all options, including appeal."

The commission also found that HTC wasn't using the invention at issue in the case, a requirement to have an infringement violation found against another company. The agency's full opinion will be made available after both sides have a chance to redact confidential information.

HTC has a second case against Apple that is scheduled to begin on August 30.

Apple contends that Android devices infringe its patents. Apple filed first in March 2010, seeking to block imports of HTC's Android phones. In that case, the commission in December found that HTC was infringing an Apple patent related to data detection and ordered a halt to phones that used the invention. HTC said it was able to design around that feature.

Apple sold 37 million iPhones in the fourth quarter, helping the company double its profit in the period and capture 24 per cent of the global market, according to IDC. Samsung accounted for 23 per cent of smartphone sales, followed by Nokia, Research In Motion, and then HTC at 6.5 per cent.