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Apr 24th, 2013
 
STMicro Ordered by Dutch Court to Stop Microphone Sales to HTC
 
STMicroelectronics NV (STM) was ordered by a Dutch court to stop supplying HTC Corp. with microphones used in smartphones after Nokia Oyj (NOK1V) complained the chipmaker broke an exclusivity agreement. HTC shares fell.
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“This product that was made especially for Nokia couldn’t be supplied to others,” the Amsterdam District Court said yesterday in a preliminary injunction ruling.

STMicroelectronics has to stick to a year-long exclusivity deal, the court said. STMicroelectronics will have to pay Nokia 50,000 euros ($63,000) for each microphone it sells to other parties, with a maximum of 1 million euros. The ban will be lifted on March 1, 2014 or after arbitration proceedings in Helsinki are completed.

Nokia filed this action after it discovered these components in the HTC (2498) One” model, Mark Durrant, a spokesman for Nokia, said in an e-mail. “In its marketing materials, HTC claims that its HDR microphone is a key feature for the HTC One, but it is Nokia technology, developed exclusively for use in Nokia products.

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