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Apple just burned $100,000,000 in fruitless attacks on HTC

Posted: , by Scott H.

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Apple just burned $100,000,000 in fruitless attacks on HTC
According to legal professionals speaking to Newsweek reporter Dan Lyons, Apple dropped $100 million dollars on its first round of legal battles against HTC. Yet despite that king's ransom Apple has little to show for it in the ongoing mobile patent wars.

Last month Apple saw its first (and so far only) victory against HTC, but it was only for a limited interpretation of one of the ten patents Apple has so far asserted against HTC, and HTC announced they were ready to ship a work-around within 48 hours. We’re not math experts, but that doesn’t seem like a lot of legal bang for Apple’s bucks.

It’s still possible that Apple may score a larger victory against HTC next year when the last of the current ITC rulings are due. And they may elect to move ahead with federal lawsuits, or open up new countries and new court systems. Of course HTC and other Apple foes have responded with lawsuits of their own, so there stands a reasonable chance that Apple may suffer a serious legal setback in the coming year. When Apple lost a patent fight with Nokia, it cost them much more than $100 million.

Having helped to kick off the patent wars, Apple in many ways brought this upon itself. Of course there was likely more than an even-headed financial strategy behind the initial legal onslaught; rather famously Steve Jobs was reported to view Android as “stolen product” and vowed to spend whatever it takes to defeat it.

Hopefully Apple will not actually need to "spend every penny" to realize the fruitlessness of litigation as a competitive strategy. With legal costs piling up and competitors banding together to strengthen their leverage against Apple, the price can only get higher from here. Now that Tim Cook is making decisions on the future of Apple’s legal strategy, we hope he will see the wisdom in finding ways to settle the lawsuits or negotiate licensing fees, so they can get back to what Apple does best: make well-designed consumer products.
 
source: Real Dan via BGR

59 Comments
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posted on 23 Jan 2012, 17:08 28

1. biophone (Posts: 1976; Member since: 15 Jun 2011)


HAHAHAHAHAHAHA. Thats why you get apple. Don't mess with HTC they didn't do anything.

posted on 23 Jan 2012, 17:24 5

7. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


You mean like release a phone and stop supporting a few months later? That's what happened to the Evo 3D, the Thunderbolt, the Shift, and so on.

posted on 23 Jan 2012, 17:27 11

10. Muhannad (Posts: 455; Member since: 20 Sep 2011)


Unlike iPhones, Android phones still have a large amount of support from the developer community. Even ICS was ported to the G1!

posted on 23 Jan 2012, 17:34 6

13. ghost__uwi (Posts: 175; Member since: 28 Nov 2011)


i would rather support from the company. Developer community is great and all. I still would like some strong support from the original company which was lacking.

Apple however really needs to take it down on the lawsuits.

posted on 23 Jan 2012, 17:34 8

12. arcq12 (Posts: 733; Member since: 13 Oct 2011)


haven't you read the recent updates on HTC phones just a few days ago? You were born to troll miz.

posted on 23 Jan 2012, 17:48 3

18. biophone (Posts: 1976; Member since: 15 Jun 2011)


Err that has nothing to do with lawsuits. I mean unless apple is suing them for not support their phones? lol

posted on 23 Jan 2012, 18:46 3

26. Sackboy117 (Posts: 178; Member since: 17 Oct 2011)


Its the Asians man, Apples got something big against them

posted on 23 Jan 2012, 20:39 4

36. biophone (Posts: 1976; Member since: 15 Jun 2011)


Well moto and apple aren't getting along to well either lol.

posted on 23 Jan 2012, 20:48 5

38. Sackboy117 (Posts: 178; Member since: 17 Oct 2011)


Hey bio, u have an iPhone 4 right, since u seem non-biased may i ask what are things u love bout ur phone and things u wish were different.
I can give my opinions of Android as well.

posted on 23 Jan 2012, 22:07 8

41. biophone (Posts: 1976; Member since: 15 Jun 2011)


Yea I do have an iphone 4 and thanks for the non biased comment I try not to be.
To be honest when I got the iPhone I wanted an Android. Originally I bought the thunderbolt but I couldn't deal with the battery life (and all the extended batteries were sold out) and the market had a lot of free content but it didn't have some apps I wanted such as temple run or other popular apps. I realized that I wasn't using flash as much as I thought I would (it also didn't work with videos that weren't really made for mobile devices) and i figured well I can't get an LTE phone with good battery life (which is important to me) might as well go with the iPhone. Android is great but I am not into customization and already have navigation in my car. I couldn't wait at that point because I was using a dumb phone since I broke my last phone and the hummingbird processor was actually a really good single core processor. I love the display and apps and the fact its so good looking. If I were to buy a phone today it would be android but when my contract is up depending on the iPhone 5 (bigger screen,4g) i might stick with the iPhone. Its also easier for me since I am part of the apple ecosystem. Overall people need to figure out whats important to them. For me the iPhone won out but who knows maybe next time it might not. People try and label you on this site as iPhone fanboy or android fanboy but I stopped caring. Whats funny is everyone online thinks I am an iPhone fanboy buy I am the biggest Android supporter among my friends. Not to mention everything on this site is blown up. For example attenagate and android being buggy.
Overall though everyone on hear groans about how terrible apple is and how terrible the iPhone is and how the iPhone is so far behind android. There is some truth to that but it still is one of the best phones available no matter what others says. I think PA has some of the most fare reviews online because both sides seem unhappy about everything. I would listen to PA reviews on the iPhone even though people call it iphonearena they are the experts and are way smarter then everyone here commenting. I listened to them about the iPhone and am very happy about it.

Please recognize that the pros and cons are for at the time i bought it but still hold up today
Pros:
App store
Battery life
design
display
processor
existing itunes integration
Cons:
4g
screen size
closed ecosystem
speakers
poor working conditions in which is was made(but I don't think anyone else is much better)
poor front facing camera
can't FaceTime over 3g(although I fixed that)

Thats my 2 cents anyway.

posted on 23 Jan 2012, 19:59 10

32. cheetah2k (Posts: 1596; Member since: 16 Jan 2011)


No wonder iPhones & iPads cost so much these days. Everyone who buys one is contributing to the legal battle, keeping the fatcat lawyers rich and busy eating donuts and drinking bottles of wine..

Makes me want to be a lawyer working on Apple cases :D

posted on 23 Jan 2012, 20:42 1

37. biophone (Posts: 1976; Member since: 15 Jun 2011)


iPhone are 200 dollars witch isn't that much. iPad is pretty much on par with the competition as far as pricing goes as well.

posted on 24 Jan 2012, 20:12

59. bruisingfour (Posts: 10; Member since: 17 Dec 2011)


Yes, the iPhone is $200...for you to buy.

The company you are buying it from however is paying a much larger sum of around $600 for that phone.

Apple gets $600
Cust pays $200
Cell Company eats a cost of $400 which they eventually make up through your monthly payment.

posted on 23 Jan 2012, 21:50 6

40. matt1q2aw3 (Posts: 13; Member since: 30 Dec 2011)


what do you have when you have a lawyer up to his neck in sand?

Not enough sand...

posted on 23 Jan 2012, 22:11

42. biophone (Posts: 1976; Member since: 15 Jun 2011)


Lawyer jokes now? I like your style thumbs up for you. :)

posted on 24 Jan 2012, 03:41

49. ardent1 (Posts: 2000; Member since: 16 Apr 2011)


if you realized Apple burned through about $100,000,000 -- what did you think HTC burn through?? About the same -- only difference is Apple can afford the legal expenses and HTC can't.

posted on 24 Jan 2012, 07:08 2

51. remixfa (Posts: 14255; Member since: 19 Dec 2008)


which means that HTC would have had to move money away from R&D and other things like raises or hiring to afford that USELESS litigation. There are more things at stake than a few laywer fees. Apple should have to pay back HTC every cent for every lawsuit it failed at. and everyone else too. that would stop these lawsuits in a heart beat.

posted on 24 Jan 2012, 17:18

57. ardent1 (Posts: 2000; Member since: 16 Apr 2011)


HTC is a known copyist and steals technologies and ended paying for it when it GOT CAUGHT.

Remix, look up HTC paying MicroSoft for the use of MS's patents in HTC android devices. End of discussion. HTC is not some Snow White, it's an ugly company with a dark side.

posted on 24 Jan 2012, 17:21 2

58. remixfa (Posts: 14255; Member since: 19 Dec 2008)


ardent...
HTC is using android code that MS feels is violating its patents. Why do u think MS has nearly every android manufacturer by the balls with royalties? They dont go after google because then google might care more about changing the code. They are doing the same thing as apple.. go after the arms of the octopus one at a time, not the head. if they go right after google and lose, they have no case... if they can bully a few manufacturers into paying royalties, then they get free money.

you defend apple and call HTC the company with the dark side.. lolol

posted on 23 Jan 2012, 17:14 18

2. ivanko34 (Posts: 617; Member since: 04 Sep 2011)


this money is taken from the iphone buyers
they pay apple lawyers

posted on 23 Jan 2012, 17:15 15

3. jove39 (Posts: 1888; Member since: 18 Oct 2011)


Such a waste...shame on you Apple

posted on 23 Jan 2012, 17:17 16

4. GeekMovement (Posts: 2156; Member since: 09 Sep 2011)


"When Apple lost a patent fight with Nokia, it cost them much more than $100 million."

I read that and thought wow apple is stupid enough to go against Nokia ahha. GO NOKIA!

posted on 24 Jan 2012, 02:54

48. XiphiasGladius (Posts: 813; Member since: 21 Aug 2011)


Actually NOKIA was the one who sued them (Apple), then the obvious outcome happened. (they're paying royalties to the Finns)

posted on 23 Jan 2012, 17:21 3

5. Gawain (Posts: 420; Member since: 15 Apr 2010)


When Apple has nearly $100B in cash alone (100,000,000,000.00), $100M (100,000,000.00) doesn't put much of a dent in cash-flow operations.

posted on 23 Jan 2012, 17:58 10

22. Tarkio (Posts: 30; Member since: 17 Jan 2012)


That still doesn't mean it was a good use of $100 million bucks.

posted on 23 Jan 2012, 18:51 5

28. Gawain (Posts: 420; Member since: 15 Apr 2010)


No argument there. I wouldn't mind if they paid a dividend on the stock I own...

posted on 23 Jan 2012, 18:01 3

23. Tux4g63 (Posts: 118; Member since: 21 Oct 2011)


It doesn't, but I guess I feel that Apple of all companies could afford to, and maybe on ethical grounds should use there money for better and more useful purposes. I think a strategy of passing along some of the savings to the consumer in the form of lower cost on their products would be widely appreciated, and might help to broaden the appeal of there products to people who choose something else based upon affordability. And it certainly wouldn't hurt their image if they had taken the same $100,000,000 and donated it to charitable organizations...

posted on 23 Jan 2012, 20:04 4

34. cheetah2k (Posts: 1596; Member since: 16 Jan 2011)


Jobs was too selfish, greedy and fcked up in the head to ever be like Bill Gates...

posted on 23 Jan 2012, 17:22 1

6. downphoenix (Posts: 3165; Member since: 19 Jun 2010)


Good going apple. All you're doing is making your money go to legal teams. When instead you can milk some nice patent money.

posted on 23 Jan 2012, 17:25 9

8. Muhannad (Posts: 455; Member since: 20 Sep 2011)


They could have spent that money on more research and development for their products instead of suing other companies.

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