Back to top

Analyst Blog

The U.S. International Trade Commission (ITC) has agreed to investigate Nokia Corporation’s (NOK - Analyst Report) patent infringement case against HTC Corporation. The litigation accuses HTC of violating six of Nokia’s patents. Notably, Nokia and HTC have been engaged in legal battles over patent disputes for quite some time.

ITC will investigate Nokia’s allegations, which claim that HTC has violated Nokia’s video processing, internal smartphone design and radio transceiver technology. Additionally, the lawsuit accuses HTC of breaching Nokia’s method and computer program patents that are used for signalling tags.

In its complain to the ITC, the Finnish handset manufacturer wants an import ban on several of HTC’s smartphones, including some of last year’s ‘HTC One’ models. Nokia also lodged a federal suit in Southern California to stop HTC from violating its patents and has asked for unspecified damages.

This is the second complaint to ITC as Nokia had earlier filed a case against HTC for using its power saving technology, which saves battery life when connected to a network. Nokia has filed similar cases against HTC in the U.K. and Germany.

Nokia further argues that HTC has not put a halt to its practices in spite of the Lumia developer winning the case in the German court. Instead, HTC has shifted the accountability to its suppliers.

Nokia has the strongest patent portfolio in the wireless industry, and has spent almost $62 billion in research and development in the last two decades. Furthermore, 41 mobile handset manufacturers use Nokia’s patents through patent licensing agreements.  Nokia receives a healthy royalty from these agreements and would give its best to protect this fee-based income, as the company struggles to regain smartphone leadership.

Earlier, Nokia had also charged Apple Inc. (AAPL - Analyst Report) and Research In Motion Limited. (BBRY - Analyst Report) with patent cases and has been successful in winning it them. Nevertheless, Nokia has suffered some setbacks in its attempt to protect its patents. The company has lost some patent lawsuits against HTC in Germany over the use of Google Inc.’s play app and content store client app in the Android-based devices.

Although ITC’s probe does not necessarily indicate a victory for Nokia, the legal body has the power to impose an U.S. import ban on some of HTC’s devices if found guilty. We believe Nokia will continue its legal fight against HTC to weaken its main Windows phone rival.  

Nokia currently carries a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 26.61 +8.66%
CENTURY ALU… CENX 26.41 +5.72%
BANCO DO BR… BDORY 16.36 +5.34%
TESLA MOTOR… TSLA 281.67 +4.44%
WILLDAN GRO… WLDN 11.20 +4.19%