HTC lawsuit caps series of initimidating Apple meetings
updated 10:05 am EST, Tue March 9, 2010
Apple attack undermines competitors' efforts
Apple's lawsuit against HTC is just the culmination of a series of threats against competitors, says Oppenheimer analyst Yair Reiner. Industry checks are said to reveal that beginning in January of this year, Apple held a series of talks with cellphone makers in which it expressed "growing displeasure" at what it saw as infringement of iPhone concepts. Although held in private, the meetings are said to have been "blunt" in nature.
Rivals have mostly stayed clear of anything that might anger Apple, Reiner claims, thanks in part to a January 2009 statement by Apple COO Tim Cook, saying that Apple would use "whatever weapons we have at our disposal" to fight patent infringement. Multi-touch phones have been mostly absent from the market since then, with the exception of the Palm Pre, which Reiner argues was not seen as a challenge to Apple. Things may have changed with the release of two Android phones, the Motorola Droid and the HTC Eris, prominently multi-touch devices.
"Top-tier handset makers continued to avoid implementing multi-touch," says Reiner, "but Apple could safely assume that they were hanging back to gauge Apple's response to Motorola and HTC. If there wasn't one, the OEMs would likely read the silence as a green light, especially after Google also moved to enable multi-touch on its Nexus One phone."
It's speculated that HTC was chosen to endure a lawsuit because of its favoring Apple's real target, Google, the creator of Android. Reiner's checks also suggest however that the case has had a chilling effect on the development of smartphones, wrecking roadmaps as companies decide to look for software and hardware workarounds, and prepare offensive and defensive legal strategies. Some phone makers may have even been frightened into switching from Android to Windows Phone 7.
"Our checks," Reiner notes, "indicate that Microsoft has been quick to sniff out this burgeoning opportunity and has begun to aggressively promote the strength of its own IP portfolio, as well as its willingness to join battle with customers that come under IP attack." Google has also expressed support for HTC in its defense against Apple. The move could put Google in an awkward position, as it continues to have deals for search and Maps on the iPhone.













Steve fired the first shot in 2007
03/09, 10:43am reply
I recall Steve Jobs holding the first iPhone at its introduction in the spring of 07. To paraphrase " this is the iphone and we have patented it from top to bottom". I thought at the time Apple has learned from its past to protect its ip from the copy cats in the world and as a company they are committed to take on anyone.
kerryb
Fresh-Faced Recruit
Joined: Aug 2001
Innovation
03/09, 10:59am reply
I get tired of hearing how Apple stifles innovation with its patent portfolio. Apple is not breaking any laws, they are just enforcing the ones which pertain to them.
Others had the chance to do multi-touch but did not do so. Apple was initially derided for some of its steps because they were different than what had gone before (multi-touch all right, multiple beatings on one button). Now phone makers have a chance to outdo Apple (but it is likely Apple isn't sitting back with no new ideas of its own).
The "innovation" is really a lack of trusting in themselves. They see Apple as the leader and want to follow in its wake. Eventually someone will figure out how to make easy and clear voice commands of complex subjects (sort of like Googling your own phone!) and that will be the next wave and multi-touch will not be needed--in other words, talking to your phone. Is anyone working on this? Don't be surprised if Apple is.
Spend some time and money copy cats. Be original, get the first arrows fired in YOUR back. Then sue anyone who tries to rip YOU off.
Bobfozz
Fresh-Faced Recruit
Joined: Jul 2008
Well, thats what lawyers do.
03/09, 11:01am reply
The vast majority of civil cases are settled out of court. It's much cheaper. A lawyer's goal is to get as much bang for the buck without going through a protracted court case. Intimidation (bluff, bluster, whatever) is a big part of getting there. It's poker writ large.
jpellino
Fresh-Faced Recruit
Joined: Oct 1999
Why are the competitors fanboys concerned?...
03/09, 11:28am reply
They claim that there's nothing special about the iPhone and other companies had better features than the iPhone long ago. If that's so, then all of Apple's patents claims will be ignored and life will go on. HTC is a very large company with plenty of lawyers (they're just short on patents). I'd hardly think they are being bullied. It's just a matter of Apple picking the biggest smartphone hardware company and letting them know they are infringing on patents. What's the big deal over this? HTC will make the necessary changes and use some other method. That seems fair enough since there must be lots of ways to get things to work properly. That's hardly shutting down HTC. They can go back to the days before multitouch.
iphonerulez
Fresh-Faced Recruit
Joined: Nov 2008
Apple Stifles Innovation
03/09, 11:53am (2 replies) reply
Tired of hearing it or not, this is a perfect example of how these patent laws stifle innovation.
The small guys can't compete, only the Google's and Microsofts, which can threaten Apple back with their own patent portfolio's have any room to maneuver.
Nobody said Apple was doing something illegal..the criticism is that the law, as it is now written is poor, and harms innovation.
Just because something is one way today, doesn't mean it has to be that way forever.
Jonathan-Tanya
Fresh-Faced Recruit
Joined: Oct 2004
And boy have we patented it!
03/09, 12:53pm reply
This means multi-touch, an apple invention, is covered by multiple patents, and if cell phone makers wanna violate these patents they can expect apple to come after them. How many touch phones were there before iPhone 3G, how many after?
- A
Fast iBook
Fresh-Faced Recruit
Joined: Mar 2003
At least they aren't waiting years
03/09, 02:22pm reply
like Nokia did before bringing their issues to the table...
legacyb4
Mac Elite
Joined: May 2001
I don't get this
03/10, 10:50am (2 replies) reply
How is it that Apple can make a desktop computer with a GUI interface and laptops that (other than quality/design issues) are the same design as PC laptops...folds/opens, LED/LCD screen, keyboard, battery, etc...yet they can complain when someone else also uses a multi-touch screen? I don't see the problem with other companies taking an idea and trying to improving it (or in some cases, making it worse - MS).
I hate to say this, but Apple really is taking on many of the aspects that we Apple folks hated about MS. I hope this doesn't continue, but I am afraid it will. So is that what we want...? Only Apple producing a product and forcing its competitors out of the market via questionable legal tactics (ie. we have more money so even if we are not right we can still win).
lamewing
Forum Regular
Joined: Aug 2004
Hmmm...
03/10, 11:16am reply
By law you can't patent something intuitive. Unfortunately, "intuitive" sums up apple's approach to an OS.
All Apple is going to do is piss off an industry that collectively can out-patent the cr*p out of them. Notice how they didn't sue Google despite the fact that most of their claim is against Android.
Watch this one play out. There is a reason analysts are now recommending a sell on Apple stock .
luckyday
Fresh-Faced Recruit
Joined: Apr 2008