Join        Login             Stock Quote

HTC, Apple (AAPL) Reach 10-Year Licence Deal; Settle Patent Lawsuits

 November 12, 2012 11:45 AM

(By Balaseshan) HTC and Apple Inc. (NASDAQ: AAPL) have reached a global settlement that includes the dismissal of all current lawsuits and a ten-year license agreement.

"We are glad to have reached a settlement with HTC. We will continue to stay laser focused on product innovation," said Tim Cook, CEO of Apple.

The license extends to current and future patents held by both parties. The terms of the settlement are confidential.

Apple will get $6-$8 for every Android-based HTC phone sold, Sterne Agee analyst Shaw Wu told the Bloomberg. HTC sells 30-35 million Android smartphones annually, so it will generate $180-$280 million in annual revenue for Apple.

[Related -Sobering Quarter and Guidance for Long-Time Apple Bull]

An Apple suit to the U.S International Trade Commission in Washington sought to block imports of HTC smartphones as the devices allegedly copied the iPhone's pinch-to-zoom feature, according to the Bloomberg. HTC fought back, alleging infringement of patents it bought last year for ways to reliably transmit a larger amount of data.

The settlement with HTC, the first company Apple sued for violating iPhone patents, suggests Cook will take a softer line than Steve Jobs, who vowed before his death last year to wage all-out war against smartphones powered by Google Inc.'s (NASDAQ: GOOG) Android, according to the Bloomberg.

The agreement may also serve as a blueprint for Apple to negotiate patent accords with Samsung Electronics Co. and Google's Motorola Mobility business, Shaw Wu told the Bloomberg.

[Related -What does Istanbul have to do with AAPL?]

Analysts told the Wall Street Journal that the HTC settlement reflected a "philosophical shift" at Apple under Chief Executive Tim Cook.

"Apple's late founder, Steve Jobs, had felt strongly about destroying his copycats, but Tim Cook's thinking is slightly different. He appears to be less interested in spending so many resources on lawsuits," Nomura analyst Aaron Jeng told the WSJ.

AAPL is trading down 0.58% at $543.87 on Monday. The stock has been trading between $363.32 and $705.07 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.