Taiwanese smartphone maker HTC has shelled out $75 million to acquire a vast patent portfolio that covers wireless technologies.
The company has announced that it has purchased 82 issued patents and 14 patent applications from US based wireless technology firm ADC Telecommunications.
HTC said in statement the patent acquisition was part of its efforts 'to develop the wireless telecommunication technology in HTC.' Under the agreement, the company will have to pay $67.5 million by April 15th 2011 and the remaining $7.5 million by April 15th 2014.
The Desire smartphone-maker, however, failed to specify exactly which patents were included in the deal. Mobile phone companies are looking to strengthen their patent portfolios not only to innovate but also to protect themselves from lawsuits.
The patents will allow the company to offer high-speed next generation LTE 4G support on its smartphones. Apart from offering a string of Android based smartphone devices, the company is also venturing into the tablet PC market with HTC Flyer.
Pete Cunningham, principal analyst at Canalys, said in a statement to V3 “You can see the importance of a strong patent portfolio from the constant suing and counter-suing by a number of companies in this space. It was also one of the key factors behind HP's acquisition of Palm.”