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

November 12, 2012
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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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