HTC 2014 Annual Report Download - page 113

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33. SIGNIFICANT CONTRACTS
The Company specializes in the research, design, manufacture and sale of smart mobile devices. To enhance the quality of its products
and manufacturing technologies, the Company has patent agreements, as follows:
Contractor Contract Term Description
Apple, Inc. November 11, 2012 - November 10, 2022 The scope of this license agreement covers
both the current and future patents held by
the parties as agreed upon and specifically
set forth in the agreement, with royalty
payable as prescribed.
Microsoft February 1, 2009 - March 31, 2015 Authorization to use embedded operating
system; royalty payment based on
agreement.
Qualcomm Incorporated. December 20, 2000 to the following dates:
a. If the Company materially breaches any agreement terms and
fails to take remedial action within 30 days after Qualcomm’s
issuance of a written notice, the Company will be prohibited
from using Qualcomm’s property or patents.
b. Any time when the Company is not using any of Qualcomm’s
intellectual property, the Company may terminate this
agreement upon 60 days’ prior written notice to Qualcomm.
Authorization to use CDMA technology to
manufacture and sell units; royalty payment
based on agreement.
Nokia Corporation January 1, 2003 - December 31, 2016 Authorization to use wireless technology,
like GSM; royalty payment based on
agreement.
January 1, 2014 - December 31, 2018 Patent and technology collaboration;
payment for use of implementation patents
based on agreement.
InterDigital Technology
Corporation
December 31, 2003 to the expiry dates of these patents stated in
the agreement.
Authorization to use TDMA and CDMA
technologies; royalty payment based on
agreement.
KONINKLIJKE PHILIPS
ELECTRONICS N.V.
January 5, 2004 to the expiry dates of these patents stated in the
agreement.
GSM/DCS 1800/1900 patent license; royalty
payment based on agreement.
MOTOROLA, Inc. December 23, 2003 to the latest of the following dates:
a. Expiry dates of patents stated in the agreement.
b. Any time when the Company is not using any of Motorola’s
intellectual properties.
TDMA, NARROWBAND CDMA,
WIDEBAND CDMA or TD/CDMA standards
patent license or technology; royalty
payment based on agreement.
Siemens Aktiengesellschaft July 2004 to the expiry dates of these patents stated in the
agreement.
Authorization to use GSM, GPRS or EDGE
patent license or technology; royalty
payment based on agreement.
IV International Licensing
Netherlands, B.V.
November 2010 - June 2020 Authorization to use wireless technology;
royalty payment based on agreement.
Telefonaktiebolaget LM Ericsson
(PUBL)
December 31, 2014 - December 31, 2016 Authorization to use GSM and wireless
technology; royalty payment based on
agreement.
6. Independent Auditors' Report
The Board of Directors and Stockholders
HTC Corporation
We have audited the accompanying consolidated balance sheets of HTC Corporation and its subsidiaries (collectively
referred to as the “Company”) as of December 31, 2014 and 2013, and the related consolidated statements of
comprehensive income, changes in equity and cash flows for the years ended December 31, 2014 and 2013. These
consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the Rules Governing the Audit of Financial Statements by Certified Public
Accountants and auditing standards generally accepted in the Republic of China. Those rules and standards require
that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall consolidated financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
consolidated financial position of the Company as of December 31, 2014 and 2013, and their consolidated financial
performance and their consolidated cash flows for the years ended 2014 and 2013, in conformity with the Regulations
Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards
endorsed by the Financial Supervisory Commission of the Republic of China.
We have also audited the parent company only financial statements of HTC Corporation as of and for the years ended
December 31, 2014 and 2013 on which we have issued an unqualified report.
February 6, 2015
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with
accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such
consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original
Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the
interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail. Also, as stated in Note 4 to the
consolidated financial statements, the additional footnote disclosures that are not required under accounting principles and practices generally applied in the Republic of China
were not translated into English.