CIO Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
Daily Briefing for Technology's Top Decision-Makers
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Thursday, April 24th 
24/7/365 Network Uptime!
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Enterprise Software
Enterprise Hardware
Big Data
Network Security
Cloud Computing
CRM Systems
Data Storage
Operating Systems
Communications
CIO Issues
Mobile Tech
Chips & Processors
World Wide Web
Business Briefing
After Hours
Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Mobile Tech

Is HTC-Apple Patent Peace the First of Many?

Is HTC-Apple Patent Peace the First of Many?
November 12, 2012 1:19PM

Bookmark and Share
The HTC-Apple patent licensing settlement may have broader implications for the rest of the industry. Samsung and Google-owned Motorola are still in the throes of litigation with Apple. So, does the HTC deal drive Android competitors closer to a settlement? Analyst Shaw Wu believes so -- and he believes the HTC deal could serve as a blueprint.

Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.

Apple has not given up its patent battle against Samsung, but it has reached a global settlement with HTC on the Android front. The Apple-HTC agreement means all lawsuits are dismissed as the companies agreed to a 10-year cross-licensing agreement.

According to the companies, the license extends to current and future patents held by both parties. The terms of the settlement are confidential, but some analysts believe HTC will be paying Apple $6 to $8 per handset it ships.

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

Meanwhile, HTC President and CEO Peter Chou said, "HTC is pleased to have resolved its dispute with Apple, so HTC can focus on innovation instead of litigation."

Paying the Apple Tax

Shaw Wu, an analyst at Sterne Agee, is among those who believe Apple is likely getting a net licensing fee because it has a much stronger patent portfolio than HTC. Although Apple was not the first to put out a smartphone or a touchscreen device, Apple is widely considered the inventor of the modern smartphone with a touchscreen. The big question on Wu's mind is whether Samsung and Motorola will also reach settlement agreements.

"From our conversations with industry sources, we estimate the net licensing fee to Apple to be in the $6 to $8 per phone range, which means about $180 to $280 million in annual revenue given the 30 to 35 million Android smart phones HTC will likely ship in 2013," Wu told us.

"This is apparently lower than the range that Apple initially proposed. But to put this in context, this compares to press reports indicating HTC pays Microsoft $5 per phone running Android."

Wu said one could make the argument that Microsoft has fewer patents and less intellectual property in this space than Apple. With that argument in mind, he thinks $6 to $8 seems reasonable if not a relatively small price for HTC and others to pay for the right to sell a modern smartphone with touchscreen.

Is Motorola Next?

"For a lot of companies, $180 to $280 million in annual licensing revenue from one vendor is material but for Apple it will likely be immaterial to its financials given its large revenue base of $193 billion and $48 billion in net income that the investment community is forecasting for fiscal year 2013," Wu said.

Indeed, the settlement may have broader implications for the rest of the industry than it does for Apple. Samsung and Google-owned Motorola are still in the throes of litigation with the iPhone-maker. So, does the HTC deal drive Android competitors closer to a settlement? Wu believes so -- and he believes the HTC deal could serve as a blueprint.

"We think it is fair that Apple will get some licensing revenue for the intellectual property it has developed -- in particular multi-touch gestures -- in making the modern smartphone and tablet with touchscreens," Wu said. "Prior to the iPhone and iPad, there were arguably no products that were close in functionality and appearance."

Tell Us What You Think
Comment:

Name:



 Mobile Tech
1. OnePlus One Boasts Android Weapon
2. Samsung: $2.2B Too Much for Apple
3. Review: Windows Phone Advances
4. Microsoft-Nokia Deal Closes this Week
5. Samsung Data Center Catches Fire




 Most Popular Articles
1. BlackBerry Drops T-Mobile After Nasty Spat
2. Cisco, IBM Launch Internet of Things Consortium
3. Salesforce CRM Gets Industry Specific for Internet of Customers
4. Intel Bets on Cloudera for Big Data Analytics
5. SAP HANA Data Warehouse App Gets Faster Analytics

Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  Google Maps, Now with Time Travel
  Lessons from Verizon's Threat Report
  NYPD Twitter Campaign Backfires
  Net Gets Faster, But Easier to Attack
  OnePlus One Boasts Android Weapon

 Technology Marketplace
Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 
Navigation
CIO Today
Home/Top News | Enterprise Software | Enterprise Hardware | Big Data | Network Security | Cloud Computing | CRM Systems
Data Storage | Operating Systems | Communications | CIO Issues | Mobile Tech | Chips & Processors | World Wide Web
Business Briefing | After Hours | Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 CIO Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.