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Apple and HTC reach 10-year licensing agreement; deal will settle all lawsuits between the two

Posted: , by Alan F.

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Apple and HTC reach 10-year licensing agreement; deal will settle all lawsuits between the two
Apple and HTC have reached agreement on a ten-year licensing agreement that covers all current and future patents. Both sides refused to comment on the terms of the agreement although HTC added that the deal would have no significant impact on the company. The CEOs of both firms, HTC's Peter Chou and Apple's Tim Cook, both stressed the desire to continue innovating for the future.

HTC recently had lost some battles against Apple in court including a ruling made last year by the U.S. ITC that the Apple iPhone and Apple iPad did not infringe on HTC patents. The Taiwan based handset manufacturer even made a $300 million purchase of S3 Graphics in 2011 with the hope that the latter's patents could help it on both the offense and defense against Apple. However, the ITC ruled that HTC's devices infringed on Apple's products.

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

"We will continue to stay laser focused on product innovation."-Tim Cook, CEO, Apple
HTC joins Nokia as the only two handset manufacturers to have entered into a global licensing deal with Apple. In June 2011, Apple and Nokia shook hands on an agreement that paid Nokia a one-time lump sum which remains confidential along with the amount of royalty payments that Nokia receives.

The main question is, where does Apple go from here? With one of the major Android producers on board, will Apple now target Samsung for a similar deal? Both firms are entrenched in litigation around the globe and on December 6th, Judge Lucy Koh will hold hearings on Apple's request for a permanent injunction on Samsung devices that a jury ruled had infringed on the Cupertino based firm's patents. At the same time, Apple is seeking to triple parts of the $1.05 billion jury award it won. Samsung seeks to throw out the verdict, claiming that the jury foreman lied by omission, and is asking for a new trial. During the trial, Judge Koh requested high-level talks between Apple and Samsung and nothing came of it.

It would be great if the industry's version of the Hatfield and McCoys could reach a deal to allow peace to break out in the wireless world, but when it comes to Apple and Samsung, we wouldn't hold our breath.

source: WSJ

Story timeline

This story is part of: Apple vs HTC lawsuit(5 updates)

66 Comments
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posted on 10 Nov 2012, 23:14 15

1. MeoCao (unregistered)


Want to be Apple's friend? Try to lose market share as much as you can and you may be just as successful as HTC.

posted on 11 Nov 2012, 03:52 3

28. PhenomFaz (Posts: 1064; Member since: 26 Sep 2012)


Man I feel for HTC...they had to make a deal with the devil...nothing good ever comes out of that!
But at the same time at least now we dont have to be worried about HTC devices laaunhes :)

posted on 11 Nov 2012, 05:43 5

33. MeoCao (unregistered)


HTC is on the road to become another Nokia.

HTC forgets what's essential thing that makes a phone company successful these days: close cooperation with Google.

HTC rise began when they made G1 and Nexus One

SS rise began when they made Nexus S and GNex

Sony has moved to 3rd after being praised by Google for cooperation with Android.

We may see LG rise next year after they made Nexus 4.

SS even intends to build a research center near Google and distance themselves from MS. So does Sony.

HTC is moving closer and closer to MS embrace and some suggest the the pact between HTC and Apple was sponsored by MS against Google policy of no compromise with patent trolls MS and Apple.

Sad, but in a few years we may not remember that there was a company with the name HTC.

posted on 11 Nov 2012, 09:42 9

48. snowgator (Posts: 3188; Member since: 19 Jan 2011)


Geez... depressed much?

I get a little tired of some of these "doom, demise and death" predictions and projections in posts. (Say that out loud- rolls off the tongue.)

Nokia? Never recovering.
Sony? Pathetic, uncompetitive.
LG? Why are they still a company, the losers?
Motorola? Google bought them for their patents. Second tier from now on.
RIM? Forget them.
HTC? Dead, done, buried. Insert eulogy here.

So many people and analysts think mobile will never change. If it isn't Apple or Android from Samsung, forget it. They will never fall from their perches and no one else will recover or rise up. This is just nuts. This is a good step for HTC. It was a good step for Apple. If Samsung and device makersl follow suit, it would be great for Android in general. A good portion of these struggling companies will fail, but a strong vision will see others through. Apple and Samsung will fall off at some point.

I think HTC will be fine in the long run.

posted on 11 Nov 2012, 10:10 2

49. networkdood (Posts: 6250; Member since: 31 Mar 2010)


I thought their rise began with Windows...

posted on 12 Nov 2012, 08:19

64. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Gotta agree with ya.

HTC phones running Win Mo 6 were probably the best phones MS had.

posted on 11 Nov 2012, 04:50

30. E.N. (Posts: 2224; Member since: 25 Jan 2009)


Didn't Apple and Samsung try many times to make a deal? And now that there's finally agreement, you're still complaining. Isnt this the point we want to reach with all the companies that are suing back and forward? What is there to complain about this time?

posted on 11 Nov 2012, 07:04 7

36. MeoCao (unregistered)


HTC is stupid, Apple's patents are mostly worthless like scroll to unlock, disappearing the scroll bar or rectangle with rounded corners... and many will be invalidated b-c they are not Apple's inventions after all like rubber banding.

HTC capitulated before a patent troll and that's is not helpful for the industry.

posted on 11 Nov 2012, 15:34

55. E.N. (Posts: 2224; Member since: 25 Jan 2009)


If HTC was willing to settle, they must have thought their own suits against Apple were just as trivial or unlikely to win.

posted on 11 Nov 2012, 20:02

59. someones4 (Posts: 618; Member since: 16 Sep 2012)


HTC doesn't have the cash to fight Apple. I heard back in August that HTC could get iphone 5 banned because it infringed on HTC patents. Nothing came after that

posted on 11 Nov 2012, 08:25 4

40. tedkord (Posts: 4286; Member since: 17 Jun 2009)


Apple and Samsung sure did try to make a deal. Apple offered to pay them one tenth of a cent per device for actual tech patents, so long as Samsung paid them in excess of $20 per device for rectangles and grids, while still not licensing many of the elements they were suing over.

Sounds like Apple were really sincere about reaching an agreement.

posted on 10 Nov 2012, 23:25 10

2. XPERIA-KNIGHT (Posts: 2384; Member since: 08 Aug 2012)


Good news for HTC :)

posted on 11 Nov 2012, 00:04 13

8. pikaposukks3 (banned) (Posts: 3; Member since: 10 Nov 2012)


stupid & coward move by HTC,

If samsung can get away without paying a dime. HTC will be the big looser in this game.

posted on 11 Nov 2012, 01:01 4

19. AmitMajumder (Posts: 79; Member since: 21 May 2012)


What do you mean by "samsung can get away without paying a dime"?

posted on 11 Nov 2012, 20:05

60. someones4 (Posts: 618; Member since: 16 Sep 2012)


Samsung will file an appeal to challenge the Californian court's ruling.
They have a good chance to get it overturned provided they play their cards right.

posted on 11 Nov 2012, 01:05 6

21. Mxyzptlk (Posts: 3224; Member since: 21 Apr 2012)


Samsung owes them a billion. This is a good move by HTC

posted on 11 Nov 2012, 02:45 7

23. PapaSmurf (Posts: 7395; Member since: 14 May 2012)


Samsung doesn't owe s**t. Who patents a damn rectangle with rounded edges? What a generic patent that is.

posted on 11 Nov 2012, 02:47 7

24. someones4 (Posts: 618; Member since: 16 Sep 2012)


a billion is just advertising fees to Samsung.
HTC and Apple are pathetic. Both of them will feel right with each other.

posted on 11 Nov 2012, 08:26 3

41. tedkord (Posts: 4286; Member since: 17 Jun 2009)


We'll see how much Samsung owes at the end. It will be MUUUUUUCH less than a billion.

posted on 11 Nov 2012, 10:11 1

50. networkdood (Posts: 6250; Member since: 31 Mar 2010)


widdle ole mxyie is on the site, again - her parents need to watch what she is doing...

posted on 11 Nov 2012, 19:50

58. rusticguy (Posts: 2819; Member since: 11 Aug 2012)


Before that Apple will conclusively have to pay for legal fees in UK to Samsung. 1 billion is not yet theirs for quite sometime to come .. perhaps they could get some by the time they launch iOS 10 or 11 maybe :)

posted on 11 Nov 2012, 21:49

62. KIANO (Posts: 67; Member since: 13 Feb 2011)


HTC is now off of Apple radar.

posted on 10 Nov 2012, 23:42 7

3. sadaivadai (Posts: 156; Member since: 22 Nov 2011)


If they can reach a deal with HTC then why not with samsung ? Please do that . I am tired of hearing these lawsuits ..

posted on 10 Nov 2012, 23:48 12

4. sarb009 (Posts: 284; Member since: 15 Jun 2011)


Because htc is not a big competition for apple BUT Samsung IS.

posted on 11 Nov 2012, 00:15 2

12. techspace (Posts: 530; Member since: 03 Sep 2012)


samsung refused to deal with apple.......so they are being forced to pay in the court, on the other hand, htc wants to use apple patents by striking a deal with them.....but samsung is asked to pay more than htc because samsung has infringed more patents and they have sold more devices than htc.......its better to fight in the court because if you lose, the amount of money you pay for infringing apple's patents could be reduced to a great extent

posted on 11 Nov 2012, 02:48 7

25. someones4 (Posts: 618; Member since: 16 Sep 2012)


Samsung doesn't want money from Apple. They want the moral victory.

posted on 11 Nov 2012, 06:24

34. techspace (Posts: 530; Member since: 03 Sep 2012)


samsung went to court because they wanted to save money......microsoft is paying apple for those patents.....whether you like it or not, if a company is awarded a patent, then the others have to pay to use that particular patent
if they wanted a moral victory, then they would have never manufactured components for apple, especially after samsung's smartphones and tablets were called as pirated products by apple.....
giving a thumbs up or thumbs down doesn't alter the truth.....actually, i appreciate samsung's decision to move to the court instead of paying for apple's patents directly, they tried their best but apple had the patents.......

posted on 11 Nov 2012, 08:31 5

42. tedkord (Posts: 4286; Member since: 17 Jun 2009)


Apple offered Samsung 1/10th of a penny per device for Samsung's patents, but wanted over $20 per device for their patents. Samsung's parents were for actual tech that made the phone function, Apples were for design cues like rectangles with rounded corners and for stolen ideas like grids of icons and swipe to unlock.

It was Apple who weren't willing to deal. And, Apple still haven't paid a single dime to either Samsung out Motorola for the many patents they infringed for actual tech.

posted on 11 Nov 2012, 03:08 6

27. No_Nonsense (Posts: 826; Member since: 17 Aug 2012)


$30 or $40 is too stupid and expensive a deal for a phone/tablet generic patent which was granted with no thought at all.

posted on 11 Nov 2012, 06:29

35. techspace (Posts: 530; Member since: 03 Sep 2012)


actually, samsung would have got license for all those patents for $15 had they negotiated with apple.......that's exactly the same amount of money that they are paying to MS for each smartphone and even if samsung is asked to pay much more than 1 billion in the court, it would be less than $30 to $40 per phone/tablet

posted on 11 Nov 2012, 07:32 1

38. medicci37 (Posts: 595; Member since: 19 Nov 2011)


No, actually it would not. At $30 a phone, Apple would get well over a billion dollars in SG3 & Note 2 sales alone.

posted on 11 Nov 2012, 11:38

51. techspace (Posts: 530; Member since: 03 Sep 2012)


but i said that apple would be getting around $15 per smartphone/tablet, the price of $30 set by apple was negotiable......
then samsung would have paid $15 each to apple and MS.....

posted on 10 Nov 2012, 23:50 7

5. Lwazi_N (Posts: 205; Member since: 23 Jun 2011)


The only reason Apple was able to reach agreements with Nokia and HTC is that the two companies combined pose no threat to Apple.

posted on 11 Nov 2012, 04:33

29. babyk (Posts: 221; Member since: 03 Nov 2011)


what you are saying right there don't make any sense. What you should say is that Apple wants the World to know that Android Is using their stuff to innovate

posted on 11 Nov 2012, 08:33 3

43. tedkord (Posts: 4286; Member since: 17 Jun 2009)


No, Android is out innovating Apple, and Apple doesn't want the world knowing that.

posted on 14 Jan 2013, 07:24

66. Lwazi_N (Posts: 205; Member since: 23 Jun 2011)


Bulls**t

posted on 10 Nov 2012, 23:56 5

6. Kronic (banned) (Posts: 321; Member since: 11 Sep 2012)


I am confident about apple but will htc survive these ten years? Apple haters are gonna say that the 'dark days' have begun- they should know that there is a very popular joke in the tech industry that apple has been going out of business since the past 30 years and so apple haters should know that they are neither the first, nor the last to predict apples end. Apple has always proven all those wrong.

posted on 11 Nov 2012, 00:10 3

10. XPERIA-KNIGHT (Posts: 2384; Member since: 08 Aug 2012)


justice is being served bro unlike all those years where justice has gone unseen......sorry to tell you but there "dark days" has already begun and will continue until justice has been served ........properly.......does it mean bankruptcy? like some wish? no but it does mean a new face and new beginning! :)

posted on 11 Nov 2012, 01:03 3

20. VZWuser76 (Posts: 1208; Member since: 04 Mar 2010)


That may be true, but it doesn't take much for a company to fall. The only reason Apple didn't go under sooner is because Microsoft and Jobs saved it. Jobs is gone and I'd bet money Ballmer would be content to let them die if the opportunity presents itself. But the worst thing they can do is think of themselves as invincible. That can lead to resting on their laurels, which can lead to bankruptcy. Look at a lot of the companies recently that failed to change with the times and are gone or in danger of going under. Like I've said a few times the past week on here, nothing lasts forever.

posted on 11 Nov 2012, 02:58 2

26. XPERIA-KNIGHT (Posts: 2384; Member since: 08 Aug 2012)


True but believe it or not the world could "use" apple for good things.....So instead of wanting to see them fall completely to bankruptcy how about seeing a new attitude from them? a new face? one that will help competition grow instead fighting in the court room for a change?.......................But if it takes them to fall completely for them to, WAKE THE HELL UP!..... then so be it..... but one thing is for sure we will see them suffer some things.... so lets enjoy the ride ;)

posted on 11 Nov 2012, 08:34 2

44. tedkord (Posts: 4286; Member since: 17 Jun 2009)


Apple would be out of business today if Microsoft hadn't bailed them out. That is a fact.

posted on 11 Nov 2012, 00:01 3

7. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Wow.....some normalcy with a patent case? I'm speechless. Well, hopefully thats one less patent case we have to read about.

Kronic.....once upon a time it almost happened...when Apple fired Jobs and MS lent a helping hand. That joke almost became reality. To be honest....Apple shouldnt be as arrogant as they are. If anything, they should be more humble.

posted on 11 Nov 2012, 00:11 3

11. XPERIA-KNIGHT (Posts: 2384; Member since: 08 Aug 2012)


humble is what they will be "made" to be...

posted on 11 Nov 2012, 00:06 6

9. Commentator (Posts: 2295; Member since: 16 Aug 2011)


Apple survived this long for two important reasons: Bill Gate's generosity and Steve Jobs' genius. Apple faces a Jobs-less future and nobody will be taking pity on them again if they hit a rough patch. Of course Apple will be around in 10 years, but at what capacity? (That was obviously rhetorical. Nobody knows in the slightest where Apple will be. They could be ten times as influential as they are now, or they could be the Blackberry/Nokia/Palm of the day.)

posted on 11 Nov 2012, 00:28

14. techspace (Posts: 530; Member since: 03 Sep 2012)


patents can make companies recover from bad times, for example, look at MS, they were late to the phone and tablet industry but they have made a lot of money from android devices that infringed MS's patents and the money that they have made through these devices was more than what google made through the same devices.....samsung pays $15 to MS for each smartphone
companies like apple, MS can use their patents like a life insurance, to survive through bad times or to maintain their profits.....MS has already done that, Apple may do the same thing......

posted on 11 Nov 2012, 00:56 3

16. XPERIA-KNIGHT (Posts: 2384; Member since: 08 Aug 2012)


they'll be ok (apple)......they just need to lose some of that pride and arrogance! :)

posted on 11 Nov 2012, 01:01

18. techspace (Posts: 530; Member since: 03 Sep 2012)


lolzz....

posted on 11 Nov 2012, 00:21 7

13. frydaexiii (Posts: 1176; Member since: 01 Dec 2011)


Meh, HTC's going downhill and so is Apple recently, of cause they'll come to an agreement...HTC poses no threat to Apple and Apple already has it's hands full with Samsung...

posted on 11 Nov 2012, 00:41 1

15. app_droid_soft (Posts: 42; Member since: 09 Sep 2012)


microsoft had helped apple in 1997 as an agreement to end the lawsuit related to feautures of gui

posted on 11 Nov 2012, 00:57

17. Aeires (unregistered)


My guess is Apple calls off the dogs if HTC lets them use their LTE patents. HTC gets rid of lawsuits and takes Samsung down a notch because they have less ammo to attack Apple with.

posted on 11 Nov 2012, 02:21 1

22. ElektronicGeek91 (Posts: 105; Member since: 26 Sep 2012)


HTC is no longer a trend setter in my book.

posted on 11 Nov 2012, 05:31

31. ogiveyakuza (Posts: 21; Member since: 20 Mar 2012)


this is all for Apple so that they can have LTE patent thingy...

posted on 11 Nov 2012, 08:54

46. tedkord (Posts: 4286; Member since: 17 Jun 2009)


Exactly. Apple were worried about Samsung's LTE patent suit, but rather than deal with Samsung, they'd rather deal with HTC who's not in a position to hurt them.

posted on 11 Nov 2012, 05:39 2

32. Peter98 (Posts: 119; Member since: 01 Aug 2012)


This is a great deal! Samsung should do this!

posted on 11 Nov 2012, 07:19 2

37. bojan (Posts: 188; Member since: 06 Oct 2012)


sorry HTC you lose and you lose big many people will not buy your cell phones now. google inc should dismis HTC from Android. HTC is brandless name already dimished. and apple is going down hill no more jailbreaks for iphone 5 this means that millions will stop buying apple iphones and no more apple this is coming soon for apple. soon apple will be there new myspace. apple you own your life to jailbrekers without them you are just like my space your life depends on them

posted on 11 Nov 2012, 08:44 2

45. ktfrank (Posts: 4; Member since: 11 Dec 2010)


Your statement is the most uneducated post I've read in a while. You say no one will buy HTC phones because of an agreement with Apple. Huh??? You do realize that most companies have agreements already in place with each other. Like Apple pays Nokia for each iPhone, and HTC, Samsung, etc pay Microsoft for each Android phone. I'm pretty sure most people that buy an iPhone or and Android phone don't realize that Microsoft and Nokia get paid for that.

posted on 11 Nov 2012, 16:04

56. lyndon420 (Posts: 1688; Member since: 11 Jul 2012)


Indeed. His grammar is horrible, but believe it or not his english is good enough for him to teach it in China. I know someone teaching it there and their printed word is atrocious and down right embarrassing.

posted on 11 Nov 2012, 07:43 2

39. parkwaydr (Posts: 572; Member since: 07 Sep 2011)


Wow, I don't know what to say, I love my EVO and up until this point was a certified HTC fanboy. But I'm sorry, HTC I can't do it, I cannot support a company that bends over for apple. I've lost all respect and will never touch another HTC product again.

posted on 11 Nov 2012, 08:56 2

47. tedkord (Posts: 4286; Member since: 17 Jun 2009)


How did they bend over? It's a cross licensing agreement. Both sides benefit.

posted on 12 Nov 2012, 03:21

63. letgomyeggroll (Posts: 137; Member since: 13 Jun 2012)


Both sides will not benefit. What does Apple have that HTC doesnt already have? Most of HTC innovations are borrowed from other companies, and they can't use that on Apple at all unless the other companies agreed. HTC innovation has fallen since the EVO 3D. And gotten worst by copy catting Apple with the SIM slot and built in battery. And compare their Audio player is better than everyone else, like Apple always do. This is what I have expected since the new EVO LTE came out. At was so alike including the box letter screen. HTC and Apple hand and hand. NO HTC will help Apple develop a phone to push more over seas. So basicly Apple will have more leverage than HTC on this. Unless Apple will release the OS to HTC for their products.

Samsung will not agree with Apple on anything. As the are the key to too many components for Apple and also HTC. No matter where Apple will get their resource from for the chips or screen, Samsung is still in the picture. But now Apple has to go through a third party source and pay more.
It wont be too long Apple stocks will drop some more, since all their products has not change since the Ipod touch.

You see Samsung got more success and more power because they brought as many as they could on chip patents. Most chips are engineered by locals here in the U.S., and all Samsung have to do is knock on the door and offer a check. They can because it only cost them pennies to make any chips or screen.

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