Shares of Roku Fall After Losing Patent Case to Universal Electronic

Streaming device and remotes maker Roku saw its shares slip on Wednesday after Universal Electronics claimed a win against the company in a patent case.

Universal Electronics Inc. (UEIC) said that the United States International Trade Commission issued favorable final determination in UEI’s patent infringement case against Roku.

Roku shares dropped 8% after Wall Street learned that the company had lost in the patent infringement case.

According to Universal, who makes remotes compatible with a range of electronics, the United States International Trade Commission has banned Roku from importing infringing “televisions, set top boxes, remote control devices, streaming devices and sound bars.”

The orders, that bar the importation and sale of Roku streaming devices, soundbars and other products, which were found to be infringing a UEI patent, are expected to be final on January 9, 2022.

Roku is only allowed to import items provided that they don’t infringe on Universal’s patents, according to the order. The order, issued Dec. 3, will become final on Jan. 9.
President Joe Biden has time to review the order and even overturn it.

Universal had filed the complaint last year against Roku and TV-makers TCL and Hisense at the ITC for infringing several patents. The case was later narrowed to include only Roku.

Universal is also pursuing cases against Roku in the district court in central California.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.