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HTC Denies That Microsoft Is Asking For Higher Royalties

Smartphone maker HTC Corp. has dismissed the ongoing rumors that Microsoft has been asking them for fatter royalty cheques for the HTC Android handsets.

The Taiwanese firm announced that they had already made an agreement with Microsoft last year covering all aspects of the royalty figures.

"Microsoft has made no requests to increase its royalty fees for HTC phones," said HTC, dispelling the rumors that had appeared in the local media.

Earlier, there were reports surfacing about Microsoft raising their royalty demand per HTC handset from $5 to somewhere around $7.5 - $12.5 for the ongoing year, meaning a hike of 50 percent or more.

HTC signed a patent deal with Microsoft last year that allowed it to feature Microsoft’s patent technologies in it’s smartphones, even though those phones are running on the Android platform developed by Google.

When approached for comments on the financial aspect of the deal, the company reportedly sent a statement to The Guardian (opens in new tab)saying, “Last year, HTC and Microsoft did announce a licensing agreement for Android handsets. Such agreements are not unusual in the wireless industry, and as is the case with all such agreements, HTC does not disclose financial terms,"