Smartphone maker — and rising tech star — HTC is suddenly in a world of hurt:
Apple’s initial legal victory over rival HTC in a patent infringement suit could pave the way for Apple to collect high royalties from devices running Google Android, according to one analysis.
Mike Abramsky with RBC Capital Markets believes that Apple has the upper hand over HTC, which is a smaller handset maker with a limited portfolio of intellectual property. As such, Apple could potentially push for an injunction and ask the U.S. International Trade Commission to bar the import of HTC handsets.
Instead, Abramsky believes it’s more likely that Apple will try to establish a high royalty precedent on Android devices. He said the iPhone maker could garner a deal that’s similar to or even higher than the $5 per unit that Microsoft collects on HTC Android devices.
If Samsung and other Android handset makers are also found in violation of Apple’s patents, then who knows what will happen? Forced to choose between giving up a popular mobile OS or paying large sums to your biggest competitor isn’t a situation anyone would envy.