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HTC licensing agreement with Apple leads to good expectations for 2013!

HTC licensing agreement with Apple leads to good expectations for 2013!

Back in November HTC licensing agreement with Apple ended the 32 months intellectual property battle with Apple, started in March 2010. The two companies have signed a 10-year license agreement that covers all current, pending and future patents of the two companies. It is estimated that HTC pays Apple between $6 and $8 for every Android smartphone HTC sells. HTC has the right to use Apple patents but with an anti-cloning provision witch protects Apples products distinguishability. The settlement saves HTC from one of the biggest threats to the stock, eliminating the possibility of HTC being shut out of the U.S. market.

This is the first patent license Apple extended to an Android device manufacturer and it can be seen as a competitive advantage for HTC Company that can focus its efforts on the competition with Samsung and other Android device producers. Apple is also been involved in lawsuits with Samsung and Motorola Android hardware manufacturers.

HTC CEO Peter Chou declared: “HTC is pleased to have resolved its dispute with Apple, so HTC can focus on innovation instead of litigation.”

Few days ago Ray Yam, president of HTC China, said in an interview with the Economic Observer of China, that HTC would benefit the Apple agreement starting with this year.

“The settlement with Apple will start to pay off next year, and the fourth quarter of this year is still going at a set pace.” “The biggest benefit to us is that we can put more energy into innovation, which is more important than anything else for a technology company.”

Instead of wasting resources on lawsuits, HTC is focusing on adjusting its product, sales and marketing strategies for 2013 in accordance with the Apple settlement. Yam also said that HTC projects are now preceding a faster clip and the company made changes on its negotiations terms with telecom operators. The company wants to “take broader steps,” and “put more energy into innovation.”
Let’s hope these new strategies will help HTC find a way to reduce the problems of losing market share in the U.S and will also improve the company’s capacity of facing the intensifying competition in China’s smartphone market.

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