The Battles of Patent
After about 32 months of patent wars HTC and Apple finally ended with a settlement.
(Picture from Apple Daily)
The success of HTC had an effect of intense competition in the industry. In February, 2010, HTC was awarded the prize of “Best Smart phone” in 2010 by MWC. Despite this, the event also earmarked the beginning of serious commercial attacks from its opponents.
Apple had started its well-planned war of patent lawsuits against HTC since March 2nd, 2010. The war was literally more ruthless than a military confrontation. Indeed, the lawsuits did not only take place in USA but also in UK and Germany. After 32 months of legal proceeding, HTC and Apple finally signed on a10-year Patent Cross-License Agreement as a settlement.
Although the lawsuits were settled at the end, HTC was damaged to a great extent. HTC’s primary markets were in US and Europe. The war of lawsuits had inevitably distracted its product innovations. It also made HTC postpone its products’ launch time and its marketing campaigns.
In short, business competition can be as severe as a battle on the field. The ownership of patents will not only set up entry barriers, and it also yields additional fees of its copyright.
HTC has always been proud of its own product innovation, and they refuse to be a copycat. Despite this, HTC was still severely troubled by patent lawsuits after its success. What a pity it is to HTC itself and many of its supporters. Taiwan business community should learn a lesson from HTC to place emphasis on the importance of patents.
Lydia