A mobile phone store in Taipei. (Photo/Hsu Cheng-hung)
The patent settlement reached between Taiwanese smartphone maker HTC and Apple will likely boost the performance of Taiwan's industrial production in the fourth quarter of this year, the Ministry of Economic Affairs said Monday.
The resolution of patent quarrels between HTC and Apple is expected to boost the already positive forecast for Taiwan's fourth quarter industrial production, the ministry said.
The PC, electronics and optical production sectors are also expected to benefit from the news, the ministry added.
Taiwan's industrial production index ended its decline of three consecutive quarters to stand at 133.21 for the third quarter of this year, up 1.46% from a year ago, according to government statistics.
The remarks came after HTC and Apple announced a day earlier that they have agreed to settle their global patent disputes through the dismissal of all current lawsuits and the signing of a 10-year license agreement, ending a legal battle that has been running since March 2010.
Also Monday, Economics Minister Shih Yen-shiang said that the settlement is likely to boost the exports of HTC smartphones, and that Taiwan's overall exports performance will also likely step up a notch.
Smartphone production remains a core manufacturing segment in Taiwan because HTC's smartphones are assembled domestically before being shipped to foreign markets, he said.
Meanwhile, minister without portfolio Simon Chang, a former Google executive, said Monday that it is a good thing that the two sides have settled their disputes. The global patent war has gone a bit too far, he said, adding that patents have now become a weapon to attack, instead of a shield to protect developers' creativity.