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

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 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

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64 Comments

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.

28. PhenomFaz

Posts: 1236; Member since: Sep 26, 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 :)

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.

48. snowgator

Posts: 3621; Member since: Jan 19, 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.

49. networkdood

Posts: 6330; Member since: Mar 31, 2010

I thought their rise began with Windows...

64. jroc74

Posts: 6023; Member since: Dec 30, 2010

Gotta agree with ya. HTC phones running Win Mo 6 were probably the best phones MS had.

30. E.N.

Posts: 2610; Member since: Jan 25, 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?

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.

55. E.N.

Posts: 2610; Member since: Jan 25, 2009

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

59. someones4

Posts: 627; Member since: Sep 16, 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

40. tedkord

Posts: 17356; Member since: Jun 17, 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.

2. XPERIA-KNIGHT unregistered

Good news for HTC :)

8. pikaposukks3

Posts: 3; Member since: Nov 10, 2012

stupid & coward move by HTC, If samsung can get away without paying a dime. HTC will be the big looser in this game.

19. AmitMajumder

Posts: 178; Member since: May 21, 2012

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

60. someones4

Posts: 627; Member since: Sep 16, 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.

21. Mxyzptlk unregistered

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

23. PapaSmurf

Posts: 10457; Member since: May 14, 2012

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

24. someones4

Posts: 627; Member since: Sep 16, 2012

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

41. tedkord

Posts: 17356; Member since: Jun 17, 2009

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

50. networkdood

Posts: 6330; Member since: Mar 31, 2010

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

58. rusticguy

Posts: 2828; Member since: Aug 11, 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 :)

62. KIANO

Posts: 91; Member since: Feb 13, 2011

HTC is now off of Apple radar.

3. sadaivadai

Posts: 156; Member since: Nov 22, 2011

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

4. sarb009

Posts: 322; Member since: Jun 15, 2011

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

12. techspace

Posts: 1037; Member since: Sep 03, 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

25. someones4

Posts: 627; Member since: Sep 16, 2012

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

34. techspace

Posts: 1037; Member since: Sep 03, 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.......

42. tedkord

Posts: 17356; Member since: Jun 17, 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.

27. No_Nonsense unregistered

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

35. techspace

Posts: 1037; Member since: Sep 03, 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

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