U.S. court rejects
Gemalto's Android patent lawsuit
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[June 20, 2014]
(Reuters) - Gemalto NV, the
French digital security company, said on Friday that the
U.S. Court of Appeals for the Federal Circuit rejected
its patent claim relating to the Android smart phone
Gemalto, which makes smart cards, filed a suit in the United States
in October 2010 against Google, Motorola, Samsung and HTC, alleging
that their Android applications infringed on its patents.
The company's shares, which are traded in Amsterdam, fell 1.8
percent early on Friday.
"Gemalto's has consistently patented and broadly licensed its
innovation so we are certainly disappointed by this judgment with
regards to the scope of use of some of our intellectual property,"
Olivier Piou, the company's chief executive, said in a statement.
Piou said the decision would have "no impact on our historical
patents licensing activity, nor on the company’s 2017 long-term
A company spokeswoman could not immediately be reached for comment.
Analysts at ING said the court's rejection was disappointing. "We
had estimated that if Gemalto had won the case the company could
have been entitled to either a one-off payment in damages, or higher
royalty receipts that could amount to 30-50 million euros per
annum," they said in a note.
ING analysts estimated Gemalto's patent business contributes 15
million euros on an annual basis, but they said this could well have
doubled, at least, if the company had won the lawsuit. "It thus
erodes a 3 percent earnings increase potential."
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Gemalto employs more than 12,000 staff in 44 countries and had
revenues of 2.4 billion euros ($3.27 billion) in 2013.
($1 = 0.7336 Euros)
(Reporting by Anthony Deutsch. Editing by Jane Merriman)
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