Mobile Tech Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
News & Product Reviews for Mobile Tech Users
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Sunday, April 20th 
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
Laptops & Tablets
Mobile Phones
Mobile Gadgets
Mobile Apps
BYOD & MDM
iPad
Mobile Industry News
Wireless Connectivity
Wireless Security
GPS & Maps
MTT Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Mobile Industry News

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.

APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.

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 Industry News
1. Google, Rockstar Suit Stays in Calif.
2. Google Earnings, Sales Disappoint
3. Profit and Revenue Slip for IBM
4. Malware Targets Facebook Users
5. Intel Reports Lower 1Q Net Income




 Most Popular Articles
1. HP Rolls Out New Software-Defined Network Products
2. Google Glass Finds a Home in Medical Education, Practice
3. Smartphone Kill Switch Could Save Users $2.6B a Year
4. Avaya Aims To End Network Waiting Game
5. Google Video Shows Off Modular Project Ara Phone

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

  Cortana Fills Windows Phone Gap
  Galaxy S5 Phone: Less Can Be More
  Beware: Facebook Shares Your Locale
  Google, Rockstar Suit Stays in Calif.
  Google Earnings, Sales Disappoint

 Technology Marketplace

Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
BMC's I.T. solutions unleash the power of your business
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
 
Enterprise I.T.
BMC's I.T. solutions unleash the power of your business
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

Navigation
Mobile Tech Today
Home/Top News | Laptops & Tablets | Mobile Phones | Mobile Gadgets | Mobile Apps | BYOD & MDM | iPad
Mobile Industry News | Wireless Connectivity | Wireless Security | GPS & Maps | MTT 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 Mobile Tech Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.