Despite HTC being confident that the German IPCom case will have no material impact, the Taiwanese company is starting to feel the heat. After HTC withdrawing from the appeal, IPCom has got the power to enforce a ban for HTC devices infringing on its patents.
Now patent firm IPCom has issued a press release making it public that the company has sent out formal cease-and-desist letters to major German retailers. They are asking for an immediate end of sales for HTC’s 3G-capable products; IPCom also asked the court to “initiate penalty proceedings for contempt of court against HTC” — and we’re talking about roughly EUR250,000 (around $336,000) per violation (one shipment).
IP blogger Florian Mueller has contacted IPCom and received confirmation “that the letters it sent to retailers formally threaten with legal action unless the recipients sign a cease-and-desist agreement stipulating a contractual penalty”.
Now the ball is in retailers’ court. They will be the ones to decide whether they want to take risks and continue selling HTC 3G products (even though the agreement with the phone-maker might presume HTC bearing all the costs of such actions) or stop the sales and take the products down from the shelves.
HTC is still confident and claims to have a workaround, an ace up their sleeve if you will for this situation. It is still uncertain what the Taiwanese manufacturer’s next move will be, or when. One thing’s for sure: phones missing from the shelves don’t contribute to company revenue at any time in general, not to mention if it is holiday season.
Source: FOSS Patents