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HTC CEO Chou Says $6-8 Per Device Licensing Estimate is ‘An Outrageous Number’

Apple and HTC may have gotten together and worked out an agreement to stop patent litigation between them, but we don’t really know what the exact numbers are.  Some analysts did the math after the total deal number and came up with a guess that HTC would be paying $6-8 for each handset, a number that HTC CEO Peter Chou claims is “outrageous.”

“I think that these estimates are baseless and very, very wrong. It is a 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,” Chou said in a recent interview. Chou would seem to know best since he personally led the negotiations with Apple, but until the official numbers come out the question still lingers of who came out on top of this deal.

Via: TechCrunch

  • LionStone

    I love it…people are goin off sayin this and that (on another site), and I’m thinking, wait a minute, there’s just some guy that “THINKS” that is the deal but no facts have been posted. Some things never change…

  • http://gplus.to/boojay boo Jay

    If it’s so “outrageous”, why did he wait til now to address it?

  • http://twitter.com/armus75 Armus

    Sounds like extortion to me. The bully says pay us or we’ll sue and take all your money

  • kazahani

    What??? You mean Apple isn’t interested in a serious licensing deal and would actually rather see HTC bankraupt? This is so unexpected!

  • nwd1911

    How did you miss the opportunity to title this post: HTC CEO Chou says ‘I believe we have a happy…ending’

    • Mack

      Because his mind isn’t in the gutter.

  • Gregorio K

    If and when HTC starts to outsell the iPhone, Apple will put an end to this agreement and start suing.

  • EC8CH

    I find it unfortunate that this agreement signals that it’s back to business as usual. Instead of these patent claims being seriously challenged in court by prior art (thank you Mr. Hogan), it’s back to large software companies using their massive legal teams to demand royalties from smaller competitors.

    I think consideration should be given to Posner’s thoughts that the industry really doesn’t need software patents.

    • Gr8Ray

      But reasonable cross-licensing agreements would also end the litigation circus too.

  • http://twitter.com/Belatukadro Justtyn Hutcheson

    I think there’s no doubt that APple came out on top, but I tend to agree that $6-$8 per handset is steep, considering that they cross-licensed several patents. Likely, the number, if anything, was either a flat fee or $1-$2 per handset. Especially since Apple just got done complaining that 2-3% per device was an “unacceptable” patent licensing amount in their case with Motorola. True, that’s a different kind of patent, but even still, I think anything greater than 1% of MSRP is getting toward the ridiculous side, considering margins on mobile device are already tight for most OEM’s.