The initial ruling by a US International Trade Commission panel hearing the patent-infringement dispute between the tech heavyweight Apple and HTC, has come as a major setback for the latter after which reportedly registered a 7 percent decline on Monday.
Apple earlier accused HTC of infringing ten of its key patents, which now enjoys the backing of the US Trade panel which has acknowledged in its initial ruling that infringement did take place in two of the ten disputed patents as claimed by the iPhone maker.
The stocks of the company fell despite its desperate attempt to do the damage control by buying back its shares over the weekend.
It is not the downward performance in the stock market that HTC should be really worried about. If the initial ruling is not overturned soon, it may eventually lead to a ban by US authorities over the import of the disputed HTC Smartphones.
Luckily for the Taiwan based Smartphone maker, the finding can only be termed preliminary as of now, and will be subject to a review by the committee. The final hearing in the case has been scheduled on Dec 6, 2011.
Meanwhile, following the reports of the massive setback experienced by HTC, Taiwan stocks also fell by almost 0.42 percent on Monday.