Earlier in the week, Apple's (AAPL) announced they would be filing a lawsuit against competing; Taiwanese based software company, HTC for patent infringement. Patent suits are common in the software business though often times their rulings come too late to affect the market share occupied by the company in question in the short-term.
In the long term; however, these suits can be more troubling, threatening to sully relationships with U.S. partners. The threat of a lawsuit makes many U.S. carriers unlikely to embrace new products from HTC when the odds for a lawsuit are higher. Current American HTC customers include Google and T-Mobile.
Almost 95 percent of the revenue at HTC came from phones of its own brand and technology that is now being called into question. Even if the allegations against HTC prove to be false, the suit could slow down business for the company which is operating competitively on a global level.
Wednesday, following the announcement of the lawsuit, HTC stock fell by close to 2 percent on the Taiwan Stock Exchange.
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