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|Announcement concerning Mannheim Germany District Court Decision on IPCom GMBH & CO., KG v. HTC litigation|
1.Date of occurrence of the event:2009/03/06
2.Company name:HTC Corporation
3.Relationship to the Company (please enter ”head office” or ”affiliate company”):head office.
4.Reciprocal shareholding ratios:N/A
5.Cause of occurrence:
(1)IPCom GMBH & CO., KG has filed a patent infringement lawsuit against HTC Corporation and HTC Europe Co. Ltd (”HTC”) in the District Court of Mannheim Germany alleging that HTC has infringed on two patents. On March 5, 2009, HTC was served with the court decision on one of the patents-in-suit, from which the court has found in favour of IPCom. The court ruled that HTC products are infringing on the specified patent and subsequently granted an injunction pending IP-com raising a one million Euro security bond. Once effective, the injunction will prevent HTC from selling or importing its mobile devices into Germany.
(2)The alleged infringing technology is present in the baseband chipset component supplied by HTC’s chipset vendor and does not involve HTC technology or intellectual property. This court decision will not impact HTC’s core competency or current HTC customers in Germany or devices already on sale in Germany. HTC will be appealing the decision and requesting a stay of the injunction pending the outcome of the appeal and invalidity proceedings currently pending before the German Federal Patents Court in Munich. HTC is working with its chipset supplier to identify an alternative solution and believes the court decision has limited impact on our financial results or sales activities.
7.Any other matters that need to be specified:None