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Edition: U.S. Article Comments (1) Save Email Print Reprints Most Popular Most Shared Senate breaks logjam to restore jobless aid 02 Mar 2010 Rangel to step down from key post in Congress: report 02 Mar 2010 Dubai police chief says to seek Netanyahu arrest 02 Mar 2010 Jay Leno plays it safe in "Tonight Show" return 02 Mar 2010 Mute Chicago film critic Ebert "voices" Oscar picks 02 Mar 2010 Toyota to announce March incentives in U.S. 01 Mar 2010 Starbucks tests larger iced drinks 02 Mar 2010 Senate breaks logjam to restore jobless aid 02 Mar 2010 PREVIEW-ECB to announce further exit steps for Q2, hold rates 01 Mar 2010 Getting naked for art at the Sydney Opera House 01 Mar 2010 SPECIAL REPORT Inside Apple's fortress of secrets Inside a walled city in South China and amid intense security, employees are provided with dormitories, canteens, recreation facilities, even banks, post offices and bakeries. The goal? Keep Apple's secrets. Full Article Apple's iPad e-book store to use DRM: report Mobile operators unite to fight Apple app store Apple sues HTC over phones with Google software Gabriel Madway SAN FRANCISCO Tue Mar 2, 2010 10:12pm EST A customer tries out the new iPhone 3GS on the first day it is being sold at the Apple Store in Zurich June 19, 2009. Credit: Reuters/Christian Hartmann SAN FRANCISCO (Reuters) - Apple Inc sued Taiwan's HTC Corp, which makes touchscreen smartphones using Google software, accusing it of infringing 20 hardware and software patents related to the iPhone. Technology | Media Even though the suit did not name Google Inc as a defendant, Apple's move was viewed by many analysts as proxy for an attack on the Internet company, whose Nexus One smartphone is manufactured by HTC. "I think this is kind of an indirect lawsuit against Google," said Kaufman Bros analyst Shaw Wu. Apple's suit was filed with both the U.S. International Trade Commission and the U.S. District Court in Delaware on Tuesday, and seeks to prohibit HTC from selling, marketing or distributing infringing products in the United States. The complaint filed with the ITC cited Google's Nexus One, which was launched in January, and other HTC phones such as the Hero, Dream and myTouch -- which run on Google's Android mobile operating system -- as infringing products. In a statement, a Google spokeswoman said: "We are not a party to this lawsuit. However, we stand behind our Android operating system and the partners who have helped us to develop it." HTC said in a statement that it was looking at the filings. "HTC values patent rights and their enforcement but is also committed to defending its own technology innovations," spokesman Keith Nowak said. In a statement in Taipei on Wednesday, HTC added that it had not had the opportunity to investigate the suit. "Until we have had this opportunity, we are unable to comment on the validity of the claims being made against HTC." In a separate statement to the Taiwan stock exchange, HTC said it will not see any impact on its financial outlook for the first quarter from the lawsuit. By 0250 GMT, HTC shares lost 1.4 percent in Taipei in a broader market up 0.4 percent. The stock had fallen as much as 3 percent in early trade. "The news is having some impact on HTC's shares but lawsuits are quite common among tech firms and I would say it is just a threat from Apple this time," said John Chiu, a fund manager at Taiwan's Fuh Hwa Securities Investment Trust. "However, HTC is not a good buy in the longer term since its margins will be coming under pressure when competition intensifies." FIERCE COMPETITION Apple's move comes amid fierce competition in the smartphone market, as new players angle for a piece of the fast-growing segment. Mark Simpson, a patent attorney with law firm Saul Ewing in Philadelphia, said HTC made for an easier target than Google. "It's probably simpler for them to go after the company making the infringing goods, which is HTC. It's easier to prove at this point," he said. MKM Partners analyst Tero Kuittinen agreed. "HTC is an optimal target for Apple -- it's a relatively small vendor with a weak brand. It may be easier to push around than Samsung (which also makes Android smartphones). One question here is whether Apple can intimidate operators to back away from new HTC products by flashing the possibility of litigation trouble." Apple said HTC "knowingly induce(s) users of accused HTC Android products" to infringe on a number of Apple's patents, some dating back to the mid-1990s. They cover user interface processes and other software and hardware components. "We think competition is healthy, but competitors should create their own original technology, not steal ours," Apple Chief Executive Steve Jobs said in a news release. An Apple spokesman declined to comment beyond the complaints. The iPhone held a 14.4 percent smartphone market share in 2009, according to research group Gartner. Phones running Android comprised only 3.9 percent of the market, but were growing fast. Apple lost some share to Android phones in the fourth quarter. "This move could be a sign Apple is getting rattled by Google's recent momentum in the mobile space -- notably the avalanche of Android products unveiled at Mobile World Congress," said Ben Wood from CCS Insight. Apple's lawsuit is the latest scrape over ownership of the underlying technology for smartphones -- handsets that play video and music, take pictures and send e-mail. Eastman Kodak Co in January filed a complaint with the ITC, saying Apple's iPhone and Research in Motion Ltd's BlackBerry camera phones infringe the photography company's patents. Nokia, the world's top mobile phone maker, has also sued Apple over patents. Apple has countersued. That dispute, potentially involving hundreds of millions of dollars in annual royalties, reflects the shifting balance of power in the mobile industry as cellphones morph into handheld computers that can play video games and surf the Web. In its ITC filing against HTC, Apple noted that some of the patents at issue are at the center of its legal fight with Nokia. Shares of Cupertino, California-based Apple fell 14 cents to close at $208.85 on Nasdaq. (Additional reporting by Sinead Carew and Franklin Paul in NEW YORK, Tarmo Virki in HELSINKI and Jonathan Standing, Jennifer Yang and Baker Li in TAIPEI; Editing by Tiffany Wu, Gary Hill, Richard Chang and Anshuman Daga) Technology Media Comments See All Comments (1) | Post Comment Mar 02, 2010 8:13pm EST For more details, see here: http://www.appleinsider.com/articles/10/03/02/inside_apples_lawsuit_against_htc.html AND: http://www.appleinsider.com/articles/10/03/02/apple_sues_htc_for_alleged_infringement_of_20_iphone_patents.html jmmx Report As Abusive See All Comments (1) Add a Comment More from Reuters Senate breaks logjam to restore jobless aid WASHINGTON (Reuters) - Highway money and jobless funds were set to flow again after the Senate ended a standoff on Tuesday that disrupted benefits for hundreds of thousands of unemployed Americans. Exclusive: Arab League to back indirect Mideast talks: source FTSE up 0.2 percent; banks higher as HSBC recovers China eyes basically steady yuan in 2010: minister S&P says less pessimistic than markets on Greece Perry wins Texas Republican governor primary » More Top News Home is where the money is Among the Chinese, a gleaming highrise is a symbol of stature and stability. But owning a piece of it is a distant dream. Video When will Beijing loosen its grip? Factbox: Risks to watch in China China Who gets the next seat? The people who fill empty Fed seats will influence interest rates and tackle the post-crisis economy. Making a choice that doesn't rattle markets is the hard part. Full Article Obama won't fill Fed seats this week Economy © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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