Over the past several years, Apple (NASDAQ: AAPL) has engaged in a long fought legal campaign against its competitors such as Samsung, Google (NASDAQ: GOOG), HTC, Motorola and more. There have been some wins for the tech giant and some losses as well. Apple seems to have a tougher time with lawsuits over in China, as there are a lot of copycat companies that make an identical product, patent it, and sue Apple for infringement, racking up major legal fees for Apple. In theory, over time, these lawsuits could ultimately do a lot of damage
Earlier this week, we got big news that Apple and HTC had finally settled their differences and signed a “peace treaty”. Under the new agreement, HTC will pay Apple $6 to $8 for every phone they sell. Next year, HTC has forecasted to sell 30-35 million smartphones next year, which translates to $180-$280 million for Apple. Apple and HTC both expressed relief in their settlement and thereby ending their three-year legal battles. Many analysts and industry professionals suggest that Apple should use a similar approach to end the legal battles with its bigger competitors such as Samsung. However, Apple’s legal issues do not stop there. It was recently discovered that a small, new company from China called GooPhone, has made an identical replica of the iPhone 5 that runs Android 4.1. Unfortunately, the company is looking into suing Apple for patent infringement and this could get the iPhone 5 banned from China all together.
The bottom line here is that Apple may be trying to deescalate the patent wars through its larger competitors but the little, fly by night companies are hurting the company as their lawsuits could have a serious impact. Overall, I see Apple pulling through and returning to a high stock price. All we must do is sit and wait for any new developments.