HTC-Apple licensing deal to benefit Android manufacturer

HTC-Apple licensing deal to benefit Android manufacturer
Back in November, Apple and HTC agreed to a 10 year licensing pact that also resolves all litigation between the two companies. According to HTC China President Ray Yam, the deal really benefits HTC. Yam says that instead of focusing on litigation against Apple, and trying to find workarounds that would allow HTC's devices to be sold in the face of alleged patent infringement, the Taiwan based handset manufacturer could focus on innovation.

Wall Street brokerage firm Goldman Sachs said the agreement will prevent HTC from getting shut out of the U.S. market. With the ability to use Apple's IP portfolio, HTC engineers could give the company the chance to move ahead of Samsung, Motorola and other Android manufacturers by having features and creating user experiences that HTC's rivals won't be able to match. As a result, Goldman Sachs sees HTC picking up smartphone market share globally.

Not all investment houses see the pact as being the major event that will turn HTC around. Britain's Barclays Plc says that unless Apple and HTC use the agreement to work on handsets together, the agreement will have no effect on the Taiwan manufacturer's current problems which include lost market share in the U.S. and tough competition in China's smartphone market.


source: FocusTaiwan, DroidDog via AndroidAuthority

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32 Comments

1. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Sleeping with the enemy never has helped.

3. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

It was the lesser of two evils. Now HTC is free of worrying whether it will be able to sell its toys and focus on building the best toys it can build. At some point down the road, many (if not all) of the patents that Apple has used in its fight with HTC will be invalidated and HTC will need to decide whether to continue paying the blood money to Apple. But that is for the future. Now it needs to focus on building the best toys that it can build.

5. MeoCao unregistered

It's still to be seen what technologies HTC can use to compete with other Android OEMs. I still don't see anything from the agreement will help HTC except avoiding Apple's bullying.

6. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

"I still don't see anything from the agreement will help HTC except avoiding Apple's bullying." And that is what HTC bought with the agreement - avoiding Apple's bullying. HTC doesn't have the resources that Sammy has.

7. MeoCao unregistered

The article also mentions some Apple's technologies that can help HTC "picking up smartphone market share globally"

9. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

But no details have been provided. I doubt that Apple gave anything away to HTC. More like HTC bought freedom to operate without the sword of iDamocles hanging over its head.

12. MeoCao unregistered

From previous reports HTC can use the whole Apple's portfolio except design patents. So HTC obviously can use pinch to zoom, rubber banding... but is there anything more substantial?

14. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

"but is there anything more substantial?" Probably not. HTC was held hostage over arguably bullish*t patents, but they didn't have the resources to fight, so they settled.

4. MeoCao unregistered

+1 dude

26. vladd100

Posts: 56; Member since: Jul 12, 2012

sleeping with the enemy has always helped ,it's a 007 theory.

27. MeoCao unregistered

lol, very nice theory, but you have to sleep 007 way not HTC way. 007 is always above the enemy (girls or not) while HTC allows the enemy climb upon themselves.

31. Aeires unregistered

One minute they are making public statements of taking apple down with their LTE patents, the next they are signing a ten year agreement. Talk is cheap, HTC the cheapest.

2. tiara6918

Posts: 2263; Member since: Apr 26, 2012

I like the idea that htc will benefit ahead of its competitors but I really hate to see them partnering up with a rotten fruit

16. Mxyzptlk unregistered

Partnering is beneficial for both parties. This is the way it should be done rather than a company infringe on someone's patents.

17. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Yes like M$ partnered with Novell to kill LINUX :)

19. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Unfortunately, some of the patents that are the subject of the extortion agreement are getting ruled invalid on further examination by the USPTO.

24. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I don see how it would benefit me to pay a bully. I rather stick with samsung that fight the bully. This is my choice no one has to agrees with it.

8. BadAssAbe

Posts: 508; Member since: Apr 22, 2011

6-8 months later, HTC Designs/invents New product/idea called "Idea A" Apple gets 10 percent share because they claimed apple invented it first 2 years later, iPhone 7.5 Has New Magical Feature called "Idea A"

10. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Do you know APPLE has patented WINDMILL? They are patenting just about anything and everything irrelevant to them and a time will come when they will just be making money out of suing every other company. http://appleinsider.com/articles/12/12/27/apples-wind-turbine-technology-uses-heat-not-kinetic-energy-to-generate-electricity So now they will sue GE/Steam turbine manufacturers etc soon (in US of A of course) ? Looks like all BRIC nations have to oppose US of A at WTO.

15. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Calm down. Just because Apple has a patent, doesn't mean they can hold everyone up for royalties. Sammy's attorneys blew their case by not mounting a prior art invalidity defense. Sammy needs to push the re-set button. Same for Apple's windmill patent. If there is prior art, it generally tends to invalidate a patent.

18. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Roche had one patent invalidated in India for a drug and it was moved to generic class under pressure from a NGO. More and more of public pressure has to come against these stupid acts because politicians /govt of the day play hand in glove with corporates world over and it's only public pressure that make things happen. People are now opposing M$ takeover of Egypt in Egypt.

20. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

How is MS taking over Egypt?

22. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Bribing govt of the day into buying M$ crap. Public is protesting against that. Here's the link:http://dailynewsegypt.com/2012/12/28/open-source-movement-to-protest-microsoft-deal/

23. MeoCao unregistered

MS is doing that everywhere in 3rd world to fend off Linux and open source software.

30. gazmatic

Posts: 812; Member since: Sep 06, 2012

i was wondering how i was going to suggest that to phonearena.... where is the "tip us" section? i know it has nothing to do with "phones" per se but i could use this to charge my devices

11. GALAXY-STORM

Posts: 328; Member since: Oct 13, 2012

They didn't have a choice except to deal with apple as they lack the resources like samsung to stand up and fight toe to toe against them. Htc better watch out against ipatent bully.

13. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Samsung is proving to be a big PITA for apple :)

21. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

In more ways than patents. Sammy is actually offering consumers toys that they want to buy.

25. ray77

Posts: 126; Member since: Nov 17, 2012

their went to the dark side of evil an the empire strikes back again

28. maxspecs

Posts: 37; Member since: Aug 29, 2012

@phonearena i need your experience and recommendation, I am a man who cares only about processor, cpu, gpu and i want the cheapest phone possible to provide that. so would please make an article about cheap but yet powerful phones with a list in ascending order for increasing price and processor power. sorry for troubling and have a happy new year!!! :)

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