Nokia Wins Preliminary Injunction Against HTC One Over Duplicated Microphone !UPDATE! - AT&T HTC One (M7)

http://www.droid-life.com/2013/04/2...-against-htc-one-over-duplicated-microphones/
As if the HTC One hasn’t seen enough setbacks already before its launch, a new court ruling against HTC in the Netherlands looks to make it even worse. Nokia has been awarded a preliminary injunction against the HTC One centering around high-amplitude microphones that are found in the phone. The microphones found inside the One are the exact same as the mics found in the Lumia 720, and that is no good for HTC.
The same company makes the microphones for HTC and Nokia, but Nokia says that the components of these mics in particular were made specifically for Nokia. While this could be a mistake on HTC’s part, it could have been the fault of the microphone manufacturer in this case. In the meantime the One is facing more setbacks.
HTC says they are “disappointed” in the decision from the court and that they will “explore alternate solutions immediately.”
Existing phones using the components face no sales ban
Dutch courts find HTC 'blameless' in Nokia's microphone dispute, but sales of offending parts halted for six months
The full details have emerged about yesterday's actions in the Netherlands, where a court was said to have handed down a preliminary injunction against the HTC one on behalf of Nokia. According to the district court filing, the courts have imposed a 10-month ban on ST Microelectronics selling any of the dual-membrane microphone pieces that were designed and co-developed by Nokia. Apparently, some miscommunication led ST Micro to believe that the exclusivity agreement for Nokia was only six months, when it was actually 12. As a penalty the terms were extended a further six months, during which time ST Micro is not allowed to sell the parts to anyone other than Nokia.
We don't make this up, we just report it.
The courts found HTC "blameless", as they could not know the details of a confidential agreement between Nokia and ST Micro, and they face no penalties. Nor are their products banned in the Netherlands or anywhere else. They will not be allowed to source the components from ST Micro for six months, though -- which could easily lead to supply issues and expensive re-engineering for future HTC One shipments. HTC has issued a statement saying in part that they "do not expect this decision to have any immediate impact on our handset sales." But they certainly can't be happy.

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CheesyNutz said:
While this could be a mistake on HTC’s part, it could have been the fault of the microphone manufacturer in this case.
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Vendors like Nokia have third parties like STMicroelectronics build components using their designs and specs all the time. That doesn't give the third party license to reuse or resell what they received from a vendor when the component in question was "exclusive." If it wasn't clearly exclusive Nokia wouldn't have been granted an injuction in less than a week. But HTC's to blame too. Their legal department should have screened every component used in the one to make sure it wasn't violating another company's patent or designs. Since the part is an HTC device they bear the responsibility but will most likely go after STM for the damages they suffer. Assuming STM's big enough to absorb them.

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HTC just can't catch a break. I like their phones though.

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I felt kind of mixed over this when I heard about it considering I own both phones.

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This might be the end of HTC. They were counting on the ONE to help them out.. It wont if its banned!! I just dont think they can afford to keep up after this. Very sad because i love HTC phones.

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nugzo said:
This might be the end of HTC. They were counting on the ONE to help them out.. It wont if its banned!! I just dont think they can afford to keep up after this. Very sad because i love HTC phones.
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Nobody is going to "ban" HTC, it's the part in question that is the issue, and I'm sure it'll get worked out. Nokia is still trying to make a comeback themselves, they can hardly afford to get in a fight.

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It's pretty much guaranteed that STM was breaching contract when they decided to do this. HTC is at fault for trusting suppliers to follow the law and honor contracts, so I guess it's time to try and preach jeremiads of how HTC is going to go bankrupt.

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nugzo said:
This might be the end of HTC. They were counting on the ONE to help them out.. It wont if its banned!! I just dont think they can afford to keep up after this. Very sad because i love HTC phones.
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The Apple injunction didn't end them last year, but yeah HTC is becoming the betamax of Android, while Samsung is VHS. (You won't understand this if you're not old like me)
---------- Post added at 07:17 AM ---------- Previous post was at 07:16 AM ----------
californiarailroader said:
Nobody is going to "ban" HTC, it's the part in question that is the issue, and I'm sure it'll get worked out. Nokia is still trying to make a comeback themselves, they can hardly afford to get in a fight.
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Nokia has patents, that's the only thing keeping them from going under.
If Nokia had gone with Android instead of Windows phone they'd be on top again.

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californiarailroader said:
Nobody is going to "ban" HTC, it's the part in question that is the issue, and I'm sure it'll get worked out. Nokia is still trying to make a comeback themselves, they can hardly afford to get in a fight.
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Im not talking about banning HTC, talking about banning the ONE. Kind of like how apple tried to ban the One X. The difference is Nokia is right here...They have a great case!!..i think they would win in a fight against struggling HTC. Dont get me wrong.. I love HTC and wish them all the luck. Hopefully it's not their fault and its the mic manufacturers fault.. Either way this hurts HTC very badly!! I dont know what i'd do if i had to switch manufacturers..I guess i can hope that Google shows up with an awesome Motorola device!!

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nugzo said:
Im not talking about banning HTC, talking about banning the ONE. Kind of like how apple tried to ban the One X. The difference is Nokia is right here...They have a great case!!..
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Do you have some insider knowledge that lets you know they have a great case?
The One won't get banned. HTC and Nokia will work out a licensing deal if it's needed..
Love how stuff like this always get blown way out of proportion..

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I'm not worried about a ban, but any more delays getting this phone to market can only hurt a company that's already in a precarious situation.

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I wonder how this will affect the release of the black version.

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gunnyman said:
I'm not worried about a ban.
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The only reason there wasn't a ban in the EU is because Nokia's mic technology is only patented in the U.S. I'm sure Nokia's already filing with the ITC seeking both an importation ban and stop-sale on the One.
This is from the international forum...
http://forum.xda-developers.com/showthread.php?t=2246517&page=5
mmathiou said:
Yes but both HTC and Nokia are big companies with huge orders, so I do not think ST will cut any of them.
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In a normal world issues like this wouldn't happen. Upon finding that STM (assumingly inadvertently) offered their technology to another company, Nokia would just say "OK, pay me $X as a license fee per unit and we'll call it good." But just like Apple vs. Samsung, it isn't about money it's about inflicting pain and damage on your competitors. As Hamdir pointed out, HTC and Nokia have a blood feud going because of HTC's entry in the Windows Mobile world which was Nokia's turf. Nokia's going to use the STM issue to inflict as much pain as they can on HTC (via STM). And unlike some of these tussles which are ambiguous this one's pretty black and white. So I'd guess any type of settlement is unlikely and that HTC will have to come up with another microphone to use.
And since the mic technology is patented in the U.S. there’s no doubt Nokia will file for an emergency injunction against HTC with the ITC seeking to bar the importation of the One. In U.S. law there’s a saying “ignorantia legis neminem excusat.” Translated from Latin it’s “ignorance of the law excuses no one.” HTC’s legal department should have verified well in advance that any of the components (theirs or third parties) used in the One didn’t violate any patents or use agreements. So the fact that STM sold them Nokia’s technology won’t allow HTC to claim “victim” status; at least not in the U.S. As someone said earlier, HTC’s contract with STM will hold STM responsible for the impact of this issue but it won’t prevent the ITC from taking action against HTC for using the offending part.
Changing out the mic isn’t as simple as it sounds though. The good news is that the mic chip isn't on the motherboard; it's on the daughter board which minimizes the reengineering work. But HTC's going to have design a new daughter board to accommodate the new mic and then modify all the s/w to account for the change in performance characteristics. A new daughter board may require FCC and CE re-certification. HTC's assembles their phones but components like the mother and daughter board arrive pre-assembled from someone else. So HTC's got to find a new mic, work with a partner to redesign the daughter board, get it in to production, and possibly have to have it re-certified. It's not a fast or trivial exercise.

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updated OP with more

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CheesyNutz said:
They will not be allowed to source the components from ST Micro for six months, though -- which could easily lead to supply issues and expensive re-engineering for future HTC One shipments. HTC has issued a statement saying in part that they "do not expect this decision to have any immediate impact on our handset sales." But they certainly can't be happy.
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This is a translation of the actual court order. STM can't sell the mics to anyone but Nokia until March 2014 or until an existing arbitration case that's being heard in Finland (Nokia's home town) decides otherwise. And the difference between the finding in the EU and whatever happens in the U.S. is that the technology used in the mic is patented by Nokia here. The ITC (not the courts) will decide whether to issue a non-importation order and/or a stop-sale. They are the same body that halted the One X in the U.S. when Apple filed a complaint over the use of the app-picker s/w patent. Dealing with a patent violation is different than dealing with an exclusivity agreement and whether HTC knew or didn't know that what STM provided was patented by someone else won't leave them "blameless" in the eyes of the patent tribunal.
One factor that HTC (or other customers) can not be that they receive a product that ST towards them was them that contractually obliged not (yet) provide known. They are therefore not acted unlawfully against Nokia in ST Tufnell microphones to buy. Therefore - now an absolute right of Nokia is missing - no legal presence which ST could base to return of the Tufnell delivered enforce microphones themselves against HTC (or other customers). Under those circumstances, a recall no appropriate form of compensation. 4.10. The advanced penalty will be maximized. 4.11. ST will be largely if convicted. Unsuccessful party in the proceedings The costs on the part of Nokia are estimated at: - summons EUR 104,00 - 589,00 registry - attorney fees 816.00 Total 1509.00 EUR 5. The decision The court 5.1. ST commands to stop after the service of this judgment immediately the supply of dual-diaphragm Microphones (Tufnell) to any person other than Nokia and keep up to March 1, 2014 or until the arbitration between the parties in Helsinki discontinued otherwise decided, 5.2. condemns ST to Nokia to pay EUR 50,000.00 for each "Tufnell" double diaphragm microphone despite the above under 5.1 a penalty payment. command specified in the said period to another than Nokia comes up to a maximum of EUR 1,000,000.00 is reached 5.3. ST condemns the proceedings, on the part of Nokia to date estimated at EUR 1,509.00, 5.4. declares this judgment provisionally enforceable, 5.5. the more points otherwise requested. This judgment was delivered by Mr. RHC Jongeneel, judge, assisted by PJ van Vliet, Registrar, and the public on April 22, 2013.​http://zoeken.rechtspraak.nl/detailpage.aspx?ljn=BZ8278