"After logging 93% revenue growth in 2010, HTC also reported second-quarter income of NT$70.7 billion (US$2.34 billion), a year-on-year decline of 83%. "

http://www.thestreet.com/story/11999158/1/htc-between-a-rock-and-a-hard-place.html?puc=yahoo&cm_ven=YAHOO

Annualized, that still works out to $9.36B for the year. Per their filings their 2011 revenues were over$12B, and their 2012 revenues were about $8B. Add that up, and for JUST THE LAST 3 Years, they will have taken in $29B in revenues, and based on the court filings we've seen, TPL/PTSC bases licensing as a percentage of gross revenue for infringing products. I assume HTC has a very broad infringing product offering. I assume it makes up the majority of their revenue producing product offering.

That being said, taking just 50% of the revenue produced for just the last 3 years, and you have $14.5B. Multiply that times the 0.234% Tier 5 Royalty rate, and you get a License Fee of $33.93M. That's BEFORE WILLFUL INFRINGEMENT considerations, and disregarding any revenues from years prior to 2011, which CLEARLY we shouldn't do.

A quick look at their financials, and HTC pulled in a clean $42B from 2006 to 2011. Add in another $10B for 2012 (prorated estimate as financials only show through 3rd quarter) and $9.36B estimate for this year for a whopping $61B in total revenue from 2006-2013. Assume only 50% of that revenue comes from infringing products (I expect that to be way too low) and you get $30.5B in infringing revenue on which to base royalty rates. Use the 0.234% multiplier on that, and you get a license fee of $71.37M. Add willful infringment....??? Who knows what the reality of the exposure is?! When I juxtapose that to Apple's paltry license, it's hard to consider this realistic, but Apple settled, HTC DID NOT!!!

If I were HTC, I'd be begging to settle, but hey, at this point, if I were TPL/PTSC, I'd refuse and take my chances in court. For all the opportunity costs and heartburn having this dragged out for SO LONG by the HTC & ACERs of the infringing world, it's time to tell Monty Hall, Thanks, but no thanks, and instead see what's behind Door No. 2.

That is of course unless HTC wants to offer up $60M to settle, then, hey, I think I'd consider it, lol.

Those are heady numbers, and I'm hesitant to accept such an simplistic analysis, but considering what I understand HTC to be, as far as what they make their money on, and assuming that most if not all of that product offering infringes, it sure seems time to test the waters and push the envelope. We'll know soon enough I guess.