HTC and Apple Declare Patent War Truce with 10-Year Licensing Agreement

[dgstorm]

Just yesterday, HTC and Apple made a surprising announcement. Apparently they worked out a 10-year patent licensing deal that effectively ends their current patent wars. In fact, this new deal even covers future patented technologies. However, while this news initially seems like magical & rosy Christmas-land, in many ways, it's still a huge loss for HTC and Android. Although the details of the agreement were not officially released, insider intel indicated that HTC will effectively have to pay Apple $6 to $8 dollars per Android device they sell. On top of the money that HTC must pay Microsoft for a similar licensing deal, much of HTC's profit is eroded in Android. This can't be good for a company that is already struggling to stay above water.

Of course, there still are no details on how much Apple will have to recompense HTC to license their tech, so some of this could be offset. Regardless, could we be seeing the patent wars winding down?

Here's the press release below,

Posted Nov 11, 2012
HTC AND APPLE SETTLE PATENT DISPUTE. All Patent Litigation Between The Companies Dismissed

1.Date of occurrence of the event:2012/11/11
2.Company name:HTC Corporation
3.Relationship to the Company (please enter "head office" or
"affiliate company"):Head Office
4.Reciprocal shareholding ratios:N/A
5.Cause of occurrence:HTC and Apple have reached a global settlement
that includes the dismissal of all current lawsuits and a ten-year
license agreement. The license extends to current and future patents
held by both parties. The terms of the settlement are confidential.
6.Countermeasures:None
7.Any other matters that need to be specified:There is no material
adverse impact on the financials of the Company.

HTC AND APPLE SETTLE PATENT DISPUTE

All Patent Litigation Between The Companies Dismissed

TAIPEI and CUPERTINO, California - November 11, 2012 – HTC and Apple have reached a global settlement that includes the dismissal of all current lawsuits and a ten-year license agreement. The license extends to current and future patents held by both parties. The terms of the settlement are confidential.

"HTC is pleased to have resolved its dispute with Apple, so HTC can focus on innovation instead of litigation," said Peter Chou, CEO of HTC.

"We are glad to have reached a settlement with HTC," said Tim Cook, CEO of Apple. "We will continue to stay laser focused on product innovation."

 

[J515OP]

Good news in general. This seems to be a different direction for Apple than Steve Jobs' "thermonuclear" statement which implied not quarter. If companies want to use the patents are ok paying and Apple is willing to license to them that is better than not allowing any use and fighting everything out in court.