Apple and HTC settle patent dispute, sign cross-licensing deal

By on November 12, 2012, 11:30 AM

Apple settled its first patent battle against an Android smartphone maker over the weekend. In a joint announcement with HTC, the company said it had reached a global settlement with the Taiwanese firm that includes the dismissal of all current lawsuits, in addition to a 10-year licensing agreement that covers current and future patents held by one another.

Financial terms of the deal were kept under wraps, though Shaw Wu, an analyst at Sterne Agee & Leach estimates Apple is receiving $6 to $8 per phone, or $180 million to $280 million a year from HTC.

Apple and HTC had been battling over smartphone patents since March 2010. Apple made the first move accusing the Taiwanese company of infringing 10 patents related to user interface design, and HTC fired back accusing Cupertino of infringing its wireless patents. HTC got the short end of the stick, however, when it was found to be in violation of one of the patents Apple had disputed and received a sales ban in the US from the International Trade Comission.

HTC CEO Peter Chou said he was pleased to have resolved its dispute with Apple so the company can go back to focus on innovation rather than litigation. Apple CEO Tim Cook echoed the sentiment, saying they will “continue to stay laser focused on product innovation.”

The settlement follows a $1.05 billion verdict won by Apple against Samsung in the US back in August. The Cupertino-based firm is still battling Samsung and Motorola Mobility in several courts around the world.




User Comments: 7

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1 person liked this | SCJake said:

Apple CEO Tim Cook echoed the sentiment, saying they will ?continue to stay laser focused on product innovation.?

Yes. Innovative ways to sue other people who are willing to play the capitalist game and NOT charge more for less, and do more than shrink the phone/add a less functional camera on a "so called upgrade"

Divvet said:

Apple CEO Tim Cook echoed the sentiment, saying they will ?continue to stay laser focused on product innovation.?

Yes. Innovative ways to sue other people who are willing to play the capitalist game and NOT charge more for less, and do more than shrink the phone/add a less functional camera on a "so called upgrade"

+1

Tygerstrike said:

Apple has been as stale as well a barrel of rotten Apples. The upper echelon of managment of Apple is also like the said barrel of apples. They are the slime on the bottom. If you play with Apple you get slime on your hands.

MilwaukeeMike said:

Apple is going to stay 'laser focused' on innovation? With the caveat that they're going to patent everything they can think of. Right now there's a patent race going on with Apple and google throwing patents out on everything they can think of. One of the reasons Google bought Motorola was for their patent portfolio.

Just because it's relevent, here's the link to the NY times article on how the patent wars aren't helping innovation.

[link]

Guest said:

I love how almost every article says Apple won a legal settlement of $1 billion dollars against Samsung but fail every single time to mention that Samsung has an appeal going on. Also Samsung has not paid anything to Apple and likely wont for a very long time.

So the $1 billion dollar selltlement means nothing as Apple hasnt seen a dime of it nor will they anytime soon do to appeals. Not to mention they have to win the appeals(Apple) to even recieve any money. The US verdict likely won't hold up. Even if it did, Samsung wont be giving them money anytime soon.

Archean Archean, TechSpot Paladin, said:

Guest above have a point, on top of that, Samsung is going to charge 20% more to Apple for A6 parts it is building for them ......... I wonder whether that hike is related to some 'backup plan' .

Tygerstrike said:

@Archean

No Samsung is in the best position of all. Apple still has a supply contract with Samsung. Samsung can drag their feet on getting parts to Apple. Oh.....wait.....isnt that whats happening? Isnt that why Apple cant get enough Icrap 5's made? Seriously though, Apple has made some serious enemys. Apples solution is to sue everyone. However with the advancments that Samsung has made in the Smartphone field, Apple is going to come begging them for use of Samsungs patents. I would pay to see a Apple ceo head to Samsung with their hat in their hands begging to use a Samsung patent. I wonder if Samsung keeps a "Traitor Trap Door" or maybe an Ejector Seat in one of the office chairs.

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