US technology giant Apple Inc and Taiwanese mobile equipment manufacturer HTC Corp have agreed to dismiss all outstanding patent lawsuits around the world bringing an end to a two-and-a-half year patent battle.
In a joint statement, the companies said that they have executed a 10-year licence agreement which extends to current and future patents held by both parties. The terms of the settlement remain confidential.
HTC's settlement with Apple follows the one between Finnish handset maker Nokia Corp and Apple earlier in summer.
Apple's CEO Tim Cook said, ''We are glad to have reached a settlement with HTC. We will continue to stay laser focused on product innovation.''
HTC makes mobile phones and tablets and competes with bigger rivals Apple, Samsung and others. Its flagship product is HTC One and the company has also launched two new models running on Microsoft's Windows Phone 8 platform.
Despite the company's position as a major player in the Android-based mobile phone market, HTC's sales have been plunging in recent quarters.
For the third quarter sales slumped nearly 50 per cent to $2.4 billion compared to $4.7 billion a year ago. Net profit nose-dived 79 per cent to 134 million from 644 million over the same periods.