HTC may pay Apple $6 - $8 per device in patent settlement

Yesterday it was announced that Apple and HTC had settled its patent dispute with a 10 year license agreement. In the press release it stated:

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.

Earlier today analyst Shaw Wu said that HTC may be paying upwards of $6 - $8 per device in licensing fees starting in 2013. This would be for both Android and Windows Phone devices, and according to Wu could amount to between $180 and $280 million in fees. While that isn't much money to Apple, it may feel like a kick in the teeth to HTC. 

The company patent war began in March 2010, when Apple filed a lawsuit against HTC claiming that the company had violated 20 of Apple's patents relating to its iPhone. HTC countered in May 2010, alleging that Apple had violated many of HTC's patents.

Source: CNET Image: HTC

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9 Comments

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Teebor said,
how many patents are involved? I thought that they had some sort of fair use pricing policy or something.
The Article says 20.. So that's less than 50cents/device/patent.. And assuming Apple is licensing from them also, I'm betting in reality either no money will change hands, or it will be very little..

I am guessing Apple would pay $1 dollar per device sold to HTC as well. Which should means both company would have nearly level up the payment.

I am puzzled why would Windows Phone devices would pay a licensing fee to Apple when they are already licensing the OS from Microsoft. Either this is bad reporting or it just doesn't make sense.

nickcruz said,
I am puzzled why would Windows Phone devices would pay a licensing fee to Apple when they are already licensing the OS from Microsoft. Either this is bad reporting or it just doesn't make sense.

Rectangle with rounded corners

nickcruz said,
I am puzzled why would Windows Phone devices would pay a licensing fee to Apple when they are already licensing the OS from Microsoft. Either this is bad reporting or it just doesn't make sense.
There shouldn't be any payment for patents re: windows phone as Microsoft has already licensed them / indemnified all their customers but there may still be patents that are relevant to the hardware. I would expect the license cost to be greater for the Android devices than for the Windows ones. This would also be in line with what Apple have demanded in the past from Samsung, i.e. fees for all handsets but a higher rate for Android.

When this story was reported by a lot of websites it was portrayed as it was a simple cross-licensing of each other's patents, we didn't know there was large quantities of money changing hands

thealexweb said,
When this story was reported by a lot of websites it was portrayed as it was a simple cross-licensing of each other's patents, we didn't know there was large quantities of money changing hands

Take anything you read written by someone else with a grain of salt or in Neowin's case a truckload of salt