Added to the Apple woes, the company has also been sued by erstwhile Finnish company, Nokia as well as by Kodak. The impact of these suits on the company's business model must be considerable. Reports suggest that HTC is paying Microsoft for the use of its patents USD5 per handset, and Microsoft wants to increase that sum. However, that is only one part of the equation. Other companies also hold patents related to mobile telecommunications standards for which HTC are either paying a royalty or elect to be doing so. That must be cutting into the profit margins on the HTC phones.
The question is: would HTC have been better sticking to their previous policy of making white label products for network operators, such as T-Mobile. It's unlikely that the other handset manufacturers would sue a network operator - and the network operator may well anyway have already obtained access to many of the relevant patent rights due to their own licences.
Technorati Tags: Patent Infringement, International Trade Commission, Smartphone, Patent