1.Name of the reporting media:The Central News Agency's
2.Date of the report:2007/11/06
3.Content of the report:A Clarification to the Central News Agency's report with respect to the US litigation in connection with the patents of downloading handset games.
4.Summary of the information provided by investors:N/A.
5.Company's explanation of the reportage or provided information:
(1)HTC has been licensed from Tao Group Limited since 2004 and is still a legitimated licensee as of today. There is no patent infringement issue.
(2)Replevix purchased HTC/Tao contracts in last July right before Tao went to bankruptcy, but Replevix did not acquire related patents from Tao and Replevix completely failed to perform any obligations under HTC/Tao contracts. Therefore, before Replevix clarifies its legal position, HTC will render the payments to the UK Court governing the HTC/Tao contracts to protect HTC's right.
(3)The total amount of this case is only USD 1.1M. Moreover, HTC has stopped using the service provided by this contract. Therefore, the case has no material impact to the business and operation of HTC.
7.Any other matters that need to be specified:None