Confirmed: HTC will pay Apple licensing fees to settle patent dispute [Update: $6-$8/unit]

by: Bams SadewoNovember 12, 2012

Thanks to the rather surprising weekend announcement, we found out that HTC is officially sleeping with the enemy now. The Taiwanese manufacturer has struck a 10-year patent cross-licensing deal with Apple, putting to an end years of hard-fought courtrooms battles between the two.

Although the joint press release was rather short on details, many were convinced that it’d be Apple who will be the one holding the whip.

We don’t have to wonder anymore, since an insider has confirmed the obvious to The Wall Street Journal. As part of the settlement, according to the source, HTC will have to pay licensing fees to Apple, the amount of which is still kept a secret.

HTC did mention yesterday that the agreement isn’t expected “to have any adverse material impact on the financials of the company”. So it’s highly unlikely that Apple will be charging $30 – $40 per device for the fees – the amount that Cupertino wanted Samsung to pay.

Good luck, HTC.

Update: According to Shaw Wu, an analyst at Sterne Agee quoted by Business Insider, HTC may be paying $6-$8 to Apple for every device sold. That would equate to about $180-$280 million in revenue for Apple. Question is: why did Apple find it necessary to ask those prohibitive rates to Samsung?

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  • KYS

    Oppps…HTC is disappointing. I have shelved my plan to get a Desire X. I wouldnt pay a cent to apple.

  • HTC pay for CrApple? Why?
    Apple should pay for HTC…

  • IncCo

    guess i wont be buying any htc devices anytime soon.. no way my money is ever goingto crApple!

    • Vboom

      So you are saying you wont buy a phone because of the loyalties of its brand?
      Starting to sound a lot like an Apple fan boy.

      • IncCo

        no i wont buy it because i dont want to support the shittiest tech company around (crApple).

  • AndroidDev123

    This is the way patents are supposed to work. Companies invent technology to push the industry forward and everyone else licenses it. It all comes out relatively even if companies are reasonable about the prices they charge and everyone licenses to eachother. The problem with Apple has been they have either refused to license or asked ridiculously high prices for minimal features, causing consumers to suffer and long court battles. I hope this trend continues and we go back to business as usual where everyone shares their technology at a fair price. If companies don’t want to end up paying a ton of licensing fees then they have an incentive to get to the best ideas first.

  • hettar

    How is this confirmed? Some analyst says he imagines they may be paying 6-8 dollars but has no way of knowing and suddenly its confirmed? Well I imagine apple may be paying HTC 00 – 200 dollars, is that confirmed now too?