HTC Corp (TPE:2498) Chief Executive Peter Chou said today that he is content with the 10-year cross-licensing agreement with Apple. Just a few weeks back, Apple Inc. (NASDAQ:AAPL) and HTC Corp (TPE:2498) struck a 10-year cross-licensing agreement, ending the long-running patent battle. Like Chou, HTC President Jason MacKenzie also said earlier that he was satisfied with the deal and revealed that it would not significantly impact the company’s financials.
The terms of the landmark agreement were not made public, but experts believe, HTC would have to pay upwards of $6 to $8 per Android phone. HTC’s Chief Executive slammed the expert’s numbers by calling it “outrageous” and “baseless,” but didn’t provide any additional numbers.
“I think that these estimates are baseless and very, very wrong. It is an outrageous number, but I’m not going to comment anything on a specific number. I believe we have a very, very happy settlement and a good ending,” said Chou at a KDDI Corp product launch in Tokyo
Apple Inc. (NASDAQ:AAPL) is also happy with the settlement, speaking on the day of the settlement announcement, Apple CEO Tim Cook said, “We are glad to have reached a settlement with HTC Corp (TPE:2498). We will continue to stay laser focused on product innovation”.
HTC Corp (TPE:2498) was the first company to be sued by Apple Inc. (NASDAQ:AAPL) for patent infringement, and the settlement has raised hopes of a similar agreement to a more bitter battle between, Apple and Samsung Electronics Co., Ltd. (LON:BC94). But, Samsung has denied having any negotiations with Apple. “It may be true that HTC may have agreed to pay 300 billion won ($276m) to Apple, but we don’t intend to [negotiate] at all,”Samsung CEO ShinJong-Kyun reportedly said last week.
Meanwhile, the Korean firm has asked to study the details of the Apple-HTC settlement, because the deal may involve similar patents.
“As you know, the issue of Apple’s willingness to license its patents was briefed in Samsung’s Electronics Co., Ltd. (LON:BC94) opposition to Apple’s motion for permanent injunction,” wrote Quinn Emanuel’s Robert Becher, who is representing Samsung in the case. “This license has direct bearing on the question of irreparable harm and whether monetary remedies are adequate”
With Litigation out of the way, HTC Corp (TPE:2498) can now focus on its turnaround efforts. Peter Chou, HTC’s CEO said “HTC is pleased to have resolved its dispute with Apple Inc. (NASDAQ:AAPL), so HTC Corp (TPE:2498) can focus on innovation instead of litigation”.