Nokia puts HTC One's microphone on mute
Nokia (NYSE: NOK) succeeded this week in convincing an Amsterdam court to block STMicroelectronics from supplying HTC with the microphone used in its recently launched HTC One smartphone.
Nokia sued STMicro for selling microphone components to HTC, components that Nokia claimed it invented, The Guardian newspaper is reporting.
"Nokia filed this action after it discovered these components in the HTC One. In its marketing materials, HTC claims that its HDR microphone is a key feature for the HTC One. But it is Nokia HAAC [high-amplitude audio capture] technology, developed exclusively for use in Nokia products," a Nokia spokesman said in a statement quoted by the newspaper.
The Amsterdam court imposed a global injunction on STMicro's sale of the microphone to third parties until March 1, 2014, or until Micro and Nokia reach an arbitration agreement, according to a report by CIO magazine. If Micro ignores the injunction and continues to sell the microphone, it must pay a €50,000 per microphone penalty up to a maximum of €1 million, the court ruled.
This is not the first time Nokia has taken to the courts to wage war against its competitors. Nokia won patent royalty settlements from Apple (NASDAQ: AAPL) in 2011 and BlackBerry (NASDAQ: BBRY) in 2012, according to The Guardian.
Nokia has been losing ground to other mobile handset manufacturers in the marketplace. According to the latest stats from Gartner, Nokia saw its mobile phone market share slip from 23.8 percent in 2011 to 19.1 percent in 2012, primarily at the hands of Samsung and Apple.
So, apparently what Nokia can't achieve in the marketplace, it is trying to achieve through the courts.