The two smartphone makers have been involved in legal patent disputes since 2010. Apple and HTC have decided to end the long standing argument by agreeing to a 10 year licensing agreement.
Peter Chou, CEO of HTC, said: "HTC is pleased to have resolved its dispute with Apple, so HTC can focus on innovation instead of litigation,"
The sentiment was echoed by Apple's CEO, Tim Cook, who said: "We are glad to have reached a settlement with HTC. We will continue to stay laser focused on product innovation."
Although the terms of the settlement are confidential, a press statement from Apple confirms the license agreement includes current and future patents held by itself and HTC. The latter will have to pay fees to Apple for each handset with Google's Android operating system.
Apple will no doubt be focusing its legal attention on bigger rivals such as Samsung. The Korean firm's Galaxy S3 became the world's bestselling smartphone ahead of the iPhone 4S in the third quarter.