On Friday, a U.S. International Trade Commission administrative law judge issued an initial ruling that HTC violated two key patents owned by Apple.
The decision was a blow to HTC, dragging its stock to a six-month low in Taiwan trading yesterday and raising uncertainty about the company.
If the ITC's full panel makes a final decision that goes against HTC, the company could face a ban on importing its smartphones.
More importantly, the two patents are seen as crucial to Android and could potentially affect other handset manufacturers. Samsung Electronics is already in a patent fight against Apple.
HTC has said it plans to appeal the initial judgment, although legal experts say overturning an administrative law judge's ruling is rare.
HTC's phones won't be banned from the US...they'll end up paying Apple a set sum per handset like many of the Android handset makers pay MS for violating their patents. The more Android sells it seems, the better off for MS and Apple...