Nov 12

Over the weekend Apple announced on its website thar arch-enemy number 3 has succumb to a licensing deal.

TAIPEI, Taiwan and CUPERTINO, California—November 10, 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.”

HTC logoThis is significant as Apple is at war with the Android operating system and all who sail in it.  The battle with Samsung goes back some time and resulted in a California court awarding $1B to Apple after the jury said that Samsung ripped of Apple. With this 10 year deal, one assumes that HTC will be paying Apple a royalty on devices sold.  How much is classified but HTC expects that the deal will not have adverse material impact on its results.

Microsoft has also been successful in licensing patents to Android phone manufactures with as some claim a $5 fee per handset. Android is defiantly not free to HTC.

Is Apple pursuing an Enemy of my Enemy is a buddy. HTC is one of the major competitors to Samsung and possibly Apple is willing to assist HTC as it battles the Samsung giant and Motorola now of coursed owned by Google themselves.

The mobile phone wars continue to creep on with skirmishes on many fronts.  The outcomes are hard to monitor as we receive conflictying data from many sources. We do know that Apple is making huge profits from mobile. far more that any other player in the space. We also know that the wait for the iPhone 5 is still significant.

 

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