Apple, HTC patent agreement will be void if either company is bought out

Earlier this week, Apple and HTC signed a patent agreement to settle all open patent agreements. It has been discovered today, however, that this agreement will be voided if either company is bought out.

FOSS Patents‘ Florian Mueller reports that this agreement prevents Samsung from buying out HTC to avoid their patent wars with Apple.

“In the event of a Change of Control of a party, this Agreement shall automatically terminate unless otherwise agreed in writing by the Parties, effective immediately prior to such Change of Control.”

A “Change of Control” is when the original company loses 50% (or more) of the voting power. As stated above, however, if both Apple and HTC wish to continue their agreement despite a change of control, they will be able to do so.

I’m not a lawyer, but I think it would’ve been nice if Samsung could just buy HTC and end the patent wars. And maybe they could learn from HTC and start making their phones out of quality materials, too. Too bad that’s not possible!

What do you think? Let us know in the comments!

Via: BGR

Tags: , , , , , , , , , ,

  • http://www.edmonton-moving.ca/ Kianagf

    Earlier this week, Apple and HTC signed a patent agreement to settle all open patent agreements. It has been discovered today, however, that this agreement will be voided if either company is bought out.