HTC acquired Dashwire for $18.5 million, in a push to cloud-based services that lets users synchronize their photos, contacts and videos online, while securing 20,000 patents its ongoing legal battles.
HTC's president of engineering and operations. "Dashwire's cutting-edge sync services and deep mobile cloud experience strengthens our ability to deliver these services in a more powerful way."HTC's move to get into the cloud services game will pit the company against steep competition. Google and Amazon already offer cloud services on Android devices, and Apple is set to roll out its iCloud service this fall with the release of iOS 5.
But the most significant aspect of the Dashwire purchase may not even relate to building a cloud platform, but rather to keeping HTC from courtroom troubles, which have plagued the company in the recent past.
HTC has been embroiled in a legal battle with Apple, and the International Trade Commission earlier this month ruled HTC violated two of Apple's patents in manufacturing its Android devices. The company appealed the ITC's ruling, but if the ITC does not reverse the decision, HTC will likely have to pay Apple royalties on every phone it makes, cutting into the company's profits.
HTC already pays $5 to Microsoft for every Android phone it produces as a result of a past patent suit.
HTC has had success in the smartphone market, posting a record second quarter in both profits and revenue, and plans to release several more devices this fall to build upon its momentum. Its current string of success may be what has the company ready to enter into the cloud game.
HTC has been able to compete strongly in the crowded smartphone market and looks to expand to the cloud, but has run into patent trouble that has cost the company millions of dollars. The Dashwire purchase may not only give the HTC the technology needed to develop its own cloud service, but equip the company with the patents necessary to stay out of revenue-killing lawsuits.
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