HTC’s 3G Smartphones Likely to Ban in Germany

According to Reuters, IPCom – German firm is planning to cease the sales and distribution of all HTC’s 3G-enabled smartphones as soon as possible in Germany over patent infringements.

The German patent firm had filed infringement lawsuit against HTC over its UMTS (3G cellular technology). The German claimed that HTC was infringing over its UMTS technology patents. This is not the first time that German firm pursued any smartphone manufacturer in Germany as it has also engaged with Nokia in legal battle over infringement cases in recent years.

The firm released a statement saying:

“IPCom now intends to execute this injunction in the shortest possible time,” the company said in a statement. “… we will use the right awarded by the courts, likely resulting in HTC devices disappearing from shops during the crucial Christmas season.”

The legal battle between IPCom and HTC began when the German firm acquired Bosch’s mobile patent portfolio, which accounts for more than 160 collections of patents among it owns. In the large list of patents, there is present a patent covering how a handset device first establishes a connection to a mobile network.

The growing competition in the smartphone market as well as an unfriendly economic climate forced HTC to warn investors that these factors would have an adverse affect on the revenues of coming quarter. The company’s quarter-on-quarter sales have slowed down with cutting estimates by up to 23% first time in the span of two years.

HTC is having a close look at the growing sales of Apple and Samsung and this has led the Taiwanese company to forecast its fourth-quarter revenue to be same as it had in 2010 – around $3.4 billion. Previously, the company has estimated the sales of about $4 billion for the coming quarter.

Holiday season is approaching quickly and a ban on HTC’s 3G-enables smartphones in Germany at this stage would likely affect the sales of the company, making it hard for the company to achieve the estimates.

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