Apple and HTC settle all patent litigation with 10 year license agreement
By T.C. Sottek on November 10, 2012 09:09 pm
Apple and HTC have announced a settlement that resolves all of their patent disputes, after the companies have traded blows in courts around the world. The agreement is a "global settlement" that dismisses all of Apple and HTC's complaints under a ten-year license agreement, which covers current and future patents held by each company. In a joint press release, the companies say that the terms of the settlement are confidential — but HTC representative Jeff Gordon tells The Verge that the company "does not expect this license agreement to have any adverse material impact on the financials of the company" (in other words, the deal won't cost HTC a huge amount of money). The agreement is a big deal for both companies — Apple was not ready to make a big cross license deal in its legal disputes with Samsung , and HTC was the only company besides Samsung that faced an injunction from the US International Trade Commission.
The announcement is a surprise. Despite a Delaware court's order back in May for the companies to discuss a potential settlement, there haven't been any signs of progress: HTC chairwoman Cher Wang said in August that the company had no plans to settle its ongoing litigation with Apple, even in the face of the company's massive victory over Samsung. The patent dispute between the companies began back in 2011, and HTC was burned earlier this year when its HTC One X and Evo 4G LTE devices were indefinitely delayed at US Customs as a result of an ITC ban . HTC created a workaround to the infringing patents, and eventually saw the customs ban lifted on its products, but the workaround design was questionable and had yet to be decided by the ITC.
"We will continue to stay laser focused on product innovation."
The notice of a settlement is accompanied by equally brief CEO statements. HTC chief executive Peter Chou says that "HTC is pleased to have resolved its dispute with Apple, so HTC can focus on innovation instead of litigation." Apple CEO Tim Cook says "we are glad to have reached a settlement with HTC," and that "we will continue to stay laser focused on product innovation."
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Are the Shorts irresponsible?
dkitt, Good post. I think those on the stump who have wagged a finger at the Longs about Shorts being the "smart money" are suggesting this:
- "these shorts" are well funded and potentially backed
- "these shorts" implement whatever strategy necessary to manage price
- "these shorts" have a media pipeline, and will activate it when necesary
- "these shorts" believe Goldman could put VHC on their conviction list and the stock would go nowhere
All this is about to change. Apple is going to settle. They got lubed when HJD denied their Motion to Dismiss Invalidity. HJD just oversaw this trial and REALLY knows the facts - opinions sealed and opinions expressed. The ITC case is looming.
Maybe I am wrong and Apple is a changed company who wants their corporate name in the negative as a daily headline? I don't think they want this, but that is exactly what is about to happen.
And what is it that Cisco can do? Desmarais just flushed one defense strategy down the toilet - invalidity. Their infringement story against Cisco is 20x easier to prove than vs Apple. It would have to be for VHC to claim willful infringement...VHC's story has to be rock solid with glaring evidence.
I truly believe all VHC Longs are going to have a Christmas (or Hanukkah) to remember...
GO VHC !
