EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS


Speculations That HTC Pays Apple Not Verified, Said to be Bogus, and May Only be Anti-Android FUD

Posted in FUD, GNU/Linux, Google, Microsoft, Patents at 8:28 pm by Dr. Roy Schestowitz


Steve BallmerSummary: HTC says there is no financial impact to the settlement, but Microsoft boosters say that HTC pays Apple for Android; Techrights investigates what people are saying and where the claims come from

As noted in the previous post, lawyers say that HTC pays Apple per phone sold following the secret settlement and they claim to know the cost. This speculation about Apple getting a patent tax (echoed by John Koetsier in this case) has Groklaw say: “Does that sound fair to you? Sound like the US patent system is working as it should?

“Folks who argue that the US patent system works beautifully for the US economy need to think about the future, then. How beautifully will the system work when other countries make it impossible for US companies to bring new products to market in the US? Think that could never happen? Look at the Apple-Microsoft-Nokia attack on Android. Now put non-US companies in attack mode and against a US product.”

Other sources seem to suggest Apple has retreated. TechDirt writes “HTC And Apple Settle Patent Dispute; Perhaps Tim Cook Realizes Patent Fights Are A Waste” and formal reports say nothing about a tax. Why? Because they do fact-checking. One Android site says:

While the specific details of the agreement are under wraps, press is being told by Jeff Grdon, representative for HTC, that HTC “does not expect this license agreement to have any adverse material impact on the financials of the company” – read as: HTC won’t break the bank in the settlement.


So no losses, correct?

Here is more speculation:

What is Google’s real incentive in seeding the Android mobile OS in the global market? Is it to make money from the sale of Android-based handsets and tablets? Certainly, that’s part of Google’s strategy. After all, through its Motorola Mobility acquisition, Google is a player in the smartphone and tablet markets.

Recently, there have been several reports about how Apple’s recent settlement with Taiwan’s HTC could mean that Apple and Microsoft make more from Android going forward than Google does. Apple and HTC have a cross-licensing deal that some are saying could mean Apple collects $6 to $8 per Android phone sold. The truth is, though, that Google’s real benefit from the spread of Android comes from bringing new users into its lucrative search/ad ecosystem.

Where do these numbers come from? These have not been verified. Given that Apple feels blowback (calls to boycott Apple and generally a great disdain or forced apologies that embarrass the company’s culture), we might as well suspect a non-victory for Apple. One expert says:

“This settlement and their statement on Friday don’t quite jive,” says David Martin, Founder and Chief Executive of M·CAM. “Apple is starting to look at the market consequence of their litigation strategy and realizing there may be some blow back from it.”

The Microsoft booster says that Apple gets paid (among other outrageous things), but maybe this is just propaganda. Groklaw writes in response: “Inventor of the touch screen, my foot. And by the way, isn’t Apple the company claiming that if it has to pay a more or less equivalent sum for FRAND patents owned by Android vendors, it will put them out of business? And next comes Nokia, the rumors continue, trying to get HTC to pay them too, and they already pay to Microsoft. They call this royalty stacking [Mark Lemley's paper explaining it, PDF], and it’s a fast way to kill off the competition, if you gang up on them this way. Meanwhile, both Apple and Microsoft are whining to regulators about royalty burdens they are threatened with if they can’t devalue FRAND patents. If there are 250,000 patents that read on just one smartphone, where in the world is the profit going to come from? You can’t make a phone in that environment. Instead of getting rid of software patents and/or devaluing all patents or even coming up with a reduced rate for victims of royalty stacking demands, Apple and Microsoft would like the devalue the ones they don’t own, but Android vendors own, while leaving their patents at full value. That way Android can’t compete in the marketplace and people will stop selling it. If by any chance you are thinking that *Apple* would never pull such a dirty trick, I direct you to their response to the UK court’s order to post a notice that Samsung didn’t copy Apple’s design patent, which the court characterized as showing a “lack of integrity”. Where are the antitrust regulators now?”

“It’s all secretive, but Microsoft and Apple try to deceive the press and the regulators.”But wait, does this booster (Eric Savitz) just spread his usual FUD? These are not verified claims, it could be just a scare tactic. Here is a more accurate report.

“Microsoft and Google’s Motorola Mobility unit are set to square off on Tuesday at a trial with strategic implications for the smartphone patent wars and which could reveal financial information the two companies usually keep under wraps,” says the Indian press. It’s all secretive, but Microsoft and Apple try to deceive the press and the regulators.

We do not even know how much HTC pays Microsoft, if anything, The claims of five dollars are unverified. Here is a new example of spin in patent settlements:

In Planning Software Patent Settlement, Both Sides Claim Victory

In the wake of a settlement of a patent infringement lawsuit involving two major financial planning software products, both sides are proclaiming victory.

“We are extraordinarily happy,” said David Loeper, CEO of Wealthcare Capital Management, the plaintiff in the case. “We’re not just happy; we had a great celebration when the agreement was settled. I can understand why the other side would be too, given the liability if we had proceeded with litigation.”

This is what the Apple-HTC settlement might have been like. It is possible that HTC pays nobody for Android. It’s speculation. When Microsoft signed a patent deal with Novell, for example, Novell was actually bribed, not charged. It was all for FUD. They create fear, uncertainty, and doubt.

Update: hours after I had drafted this post I found this post titled: “Here is why HTC doesn’t pay a cent to Apple”

Remember those statements from yesterday that HTC has to pay Apple around $6-$8 for each and every Android smartphone they sell? Well it turns out that this was complete bogus.

As I suspected when I first researched this topic, this is all just FUD and the claim is most likely bunk. Sites like Groklaw got suckered by the FUD, which had simply spread all around the Web, sometimes by all the usual suspects.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one


  1. Michael said,

    November 14, 2012 at 9:27 pm


    This speculation about Apple getting a patent tax (echoed by John Koetsier in this case) has Grok law say: “Does that sound fair to you? Sound like the US patent system is working as it should?

    If HTC has been illegally using Apple’s property it makes a lot of sense for HTC to pay Apple for past and future use. Of course.

    formal reports say nothing about a tax

    Of course not. You are using the term "tax" completely incorrectly. Why would others use your incorrect term?

    So no losses, correct?

    We do not know that. It could be he is comparing what *is* with would would be likely if this went to court. We do not know. Note, the fact we do not know means we do not know that HTC is paying Apple anything – I am not suggesting they are!

    Apple and HTC have a cross-licensing deal that some are saying could mean Apple collects $6 to $8 per Android phone sold. The truth is, though, that Google’s real benefit from the spread of Android comes from bringing new users into its lucrative search/ad ecosystem.

    Right. Google’s main business model is to collect data on users and monetize it. Scary, eh? Yet you try to prop them up as the good guys. Neither Apple nor Google nor Samsung nor Microsoft are blameless entities… they all have mixes of good and evil. Your bias, though, makes you focus on the evils of MS and Apple and pretend Samsung and Google are the good guys. Completely absurd and unsupportable. This is shown by your claiming Eric Savitz is a "Microsoft booster". More immature silliness from you. Your claim is shown to be false just looking at his articles on MS: http://seekingalpha.com/author/eric-savitz/articles/symbol/msft Notice how some are good and some are bad. No *objective* sign of "boosting". You see anyone who does not buy into your paranoid BS as boosting those you see as being evil.

  2. NotZed said,

    November 14, 2012 at 11:15 pm


    It’s still all just speculation – just how litigators like it when they settle. Maybe the ability to keep settlements secret should be looked at since in general it doesn’t seem to serve much public interest.

    “no material impact” doesn’t (necessarily) mean zero, and even a zero-money-changed-hands cross-licensing deal isn’t a zero opportunity cost.

What Else is New

  1. More Back Doors Found in Microsoft's Entrapments (Proprietary Software)

    Security flaws and even blatantly obvious loopholes for surveillance are identified in several of Microsoft's so-called 'products', which turn users (and their data) into the real product (to be sold to private companies or shared with spies)

  2. NASA Gives Back What It Took Away in the Form of Patent Monopolies for Private Gain

    Criticism of NASA's habit of clinging onto patents when it is actually the public which pays for everything

  3. The Coup D'état of Benoît Battistelli Follows an Imperialist Model, Threatens Opposition and Dissent

    SUEPO, the staff union, and boards that are independent from the EPO are both under attack and are constantly threatened by Benoît Battistelli and his goons

  4. Links 8/10/2015: Manjaro Linux Releases, Linksys WRT1900ACS, FOSS at NHS

    Links for the day

  5. Links 8/10/2015: KDE Plasma 5.4.2 Released, Linux Drama Queens

    Links for the day

  6. EPO Staff to Disrupt Administrative Council Meeting With Public Demonstration That Raises Awareness of Abuses

    The perception of collusion between the Administrative Council (AC) and the European Patent Office (EPO) leads to staff actions demanding investigation of illegal Board of Appeal (BoA) suspension/s (among many other things)

  7. OIN Turns 10, IDG Floods the Web With Puff Pieces That 'Normalise' Software Patents

    The Open Invention Network (OIN) commissions or helps produce puff pieces in the corporate media because it has an anniversary and corporate interests to push forth (including the idea that software patents can coexist with Linux)

  8. Hypocrite Forks the Linux Kernel Because of Cultural Characteristics That He Himself is Guilty of

    Forking of Linux is misleadingly reported in the media because of a couple of very loud people, who are not even quitting their jobs

  9. Željko Topić Attacks EPO Staff for 'Daring' to Legally Challenge the EPO's Management Over Its Gross Abuses in Europe

    Benoît Battistelli's right-hand man, Željko Topić, is under the false impression that yet more threats against staff of the EPO will help contain the crisis rather than further inflame it

  10. Media Reports Based on New Patents Suggest That Microsoft Continues to Attack Google and Android/Linux, Trying to Tax and Delete Android

    Reports and patent applications serve to show that Microsoft not only tries to infiltrate ("embrace") Android to put its apps there ("extend") but ultimately to delete ("extinguish") Android

  11. Commenters Provide Possible Explanations for Mr Van der Eijk Being on Unlimited Sick Leave

    Rumours are swirling around Wim Van der Eijk's absence, suggesting that he too may be a victim of Benoît Battistelli's iron fist

  12. Links 6/10/2015: Linux 4.3 RC4, HP OpenSwitch, Wind River Linux 8

    Links for the day

  13. With Software Patents in Europe (and Pushes for the Same Thing in Australia and India) Patent Trolls Now Come to Europe, Attack Android/Linux

    Worst-case scenarios are becoming a reality as Android backers officially attacked by patent trolls using standard-essential patents in London, England

  14. New Information on Limbo in the Enlarged Board, Courtesy of Illegal Actions by the EPO's Benoît Battistelli

    Battistelli's bullying of people whom he is not even allowed to bully turns out to have gone on for a lot longer than promised, and there is no sign of light at the end of this tunnel

  15. Microsoft Customers Complain About 'Inevitable' Vista 10 Because Microsoft Nearly Forces Botched 'Upgrades'

    In a desperate effort to spread Vista 10, sometimes even against people's will, Microsoft really upsets loyal customers, who are eventually eager to explore alternatives

  16. Dr. Ingve Björn Stjerna Explains Why the UPC (“Unitary Patent“ System) is an Undemocratic Sham Whilst UPC Silently Advanced by Patent Lawyers and Politicians

    European patent laws are being covertly overridden so as to allow broader scope of litigation, higher financial damages, speedy injunctions, and even software patents; the European public is intentionally kept in the dark about it, hence kept unable to express scepticism or issue truly effective objections

  17. IRC Proceedings: September 13th, 2015 – October 3rd, 2015

    Many IRC logs

  18. Article Explains Why SUEPO Went Silent Well Over a Week Ago: Nobody is Allowed to Talk to Journalists Without Permission From Battistelli

    More threats from Benoît Battistelli (threats of termination and legal actions on top of it) help hide the abuses of Battistelli and his fellow thugs at the EPO

  19. A Linux World: After Billions of Dollars in Losses Microsoft Changes How It Reports Financial Results

    The abusive monopolist is trying very hard to hide its growing difficulties, especially in an effort to bamboozle non-technical shareholders who cannot understand how Linux has essentially taken over

  20. Microsoft Continues to Extort Linux and Android OEMs Using Software Patents, This Time ASUS (Forced to Pre-Install Microsoft Spyware With OOXML)

    A roundup of news illustrating that Microsoft is still very much in a total war against Android, (mis)using federal regulators and even software patents to get its way

  21. Links 4/10/2015: Linux 4.2.3 , 4.1.10; MPlayer 1.2 released

    Links for the day

  22. Links 2/10/2015: Qubes 3.0, Linux.Wifatch

    Links for the day

  23. Microsoft-Connected Firm Net Applications Used to Mislead About Vista 10 Share and Mock GNU/Linux

    People who are connected to Microsoft (some being former staff) link to a firm that is connected to Microsoft in order to create the illusion that Vista 10 market share grew to 6.63%

  24. Chairman of the Enlarged Board of Appeal (EBoA) and EPO Vice-President of DG3 Suspiciously on Unlimited Sick Leave After Benoît Battistelli's Unprecedented Attacks on Other EBoA Staff

    Rumours suggest that Benoît Battistelli's affairs at the EPO may have something to do with Wim Van der Eijk's longterm absence

  25. Microsoft's Secret Special Relationship With EPO Illustrates Serious Corruption at Microsoft and the EPO

    A big story about the EPO and Microsoft working in a sort of collusion-type setup so as to serve Microsoft's patent agenda, which involves aggression, even against European software that is Free (as in freedom)

  26. Links 1/10/2015: LFS 7.8, Calculate Linux 15 Released

    Links for the day

  27. The 'Microsoft Loves Linux' Baloney is Still Being Floated in the Media While Microsoft Attacks Linux With Patents, New Lawsuits Reported

    Despite Microsoft's continued assault on Linux and on Android (using software patents, which it still discreetly lobbies for), some figures in the media are perpetually peddling the Microsoft-serving lie that 'Microsoft loves Linux'

  28. The Microsoft Botnet Goes Bonkers and ATMs Running Windows Spew Out Cash

    The terrible security (by design) of Microsoft Windows is causing all sorts of very serious and collectively expensive issues

  29. Black Duck Continues to Pile FUD on Free/Libre Software

    Having spent nearly a decade promoting the fear of Free software licensing, Black Duck now does the same regarding Free software security

  30. Links 30/9/2015: New Kernels, Nexus Devices

    Links for the day


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time


Recent Posts