Shares of Taiwanese firm HTC have jumped after it announced a global patent settlement with Apple.
On Saturday, Apple and HTC announced that they had settled a long-running patent dispute that began in 2010. The two firms have signed a 10-year licence agreement for using each other's patents and dismissed their ongoing cases, effectively being the first mobile giants to end a notable patent dispute.
HTC's shares shot up seven per cent this morning to T$241.50 (£5.24). However, analysts say that although the licensing deal is beneficial, it will only provide a short term boost, with HTC's future success depending on whether it can develop new handsets that are able to compete with market leaders Samsung and Apple.
"HTC is pleased to have resolved its dispute with Apple, so HTC can focus on innovation instead of litigation," said Peter Chou, the head of HTC in a statement after the settlement.
Despite enjoying early success, HTC has struggled to compete in the smartphone market since 2011, when its sales began to decline sharply as consumers switched to flagship handsets like Apple's iPhone 4 and Samsung's Galaxy range. Last month, the firm announced a 79 per cent fall in profits since last year.
It is hoping to claw back some of its former glory and match some of the success of its rivals with the HTC Windows 8X and 8S, which run on the recently launched Windows Phone 8 operating system.
Apple sued HTC in 2010, accusing the Taiwanese firm of infringing on its patented technology. The case is considered Apple's first major legal attack against Google's Android platform. In recent years the tech giant has gone after the likes of Samsung and Motorola in courtrooms across the world.