Google buys 1030 patents from IBM, Apple could win huge if its Android lawsuits hold water
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While some of the patents listed involve databases and search queries, which is connected to Google's bread-and-butter search business, a lot of those will no doubt be used to fend off the number of lawsuits by Apple and others against El Goog's Android mobile OS, after the saga with the failed bid for Nortel's patents.
Microsoft already made HTC pay it $5 for each Android handset they make, and is on the way to bend the N1 Android maker Samsung as well. Should Apple succeed with its HTC lawsuit, it could actually earn a pretty good chink of cash from that stream as well. Cupertino already had a preliminary decision that HTC is infringing on two of its patents, and is engaged in a neck-and-neck battle with Samsung over the same patents, so Bernstein's analyst Toni Sacconaghi thinks Apple stands a viable chance to cash in on its IP property:
- "We anticipate that Apple will push its legal claims hard and unrelentingly and believe that the company's key goal is to upend Android's momentum by forcing a work around on key essential features which, if successful, could have huge, positive financial implications for Apple. Given that Apple appears to have more to lose in any one legal case than they might gain (since Apple ships a much higher value of smartphones than any other player), logic suggests that Apple feels confident in its odds of winning patent disputes it initiates. Should Apple prevail in forcing Android to rework some of its functionality, resulting in market share shifts, it could have huge, positive financial implications for Apple: we note that a 10 percentage point shift in smartphone market share from Android to Apple (the current run-rate smartphone market share is 46% for Android vs. 18% for Apple) in 2013 is worth an estimated $30B+ in annual revenue and $10+ in annual EPS to Apple.
- Apple appears to have the strong upper hand in its legal battle with HTC, but we see the current rulings as only a warm up bout. A second Apple suit against HTC – as well as separate suits against key Android vendors Samsung and Motorola – involves its iOS multi-touch patents, which we believe are the key pieces of IP that Apple ultimately seeks to reaffirm at all costs, given their potential to undermine Android. While HTC (specifically, its recent acquisition – S3 Graphics) and Apple recently won preliminary judgments against each other at the US ITC, we view S3's victory as limited in scope (unlike Apple's claims against HTC) and not posing a credible threat to Apple. More importantly, however, Apple recently launched a second case against HTC claiming infringement of its key multi-touch patents. We believe this is the much more important battle, and one which courts have yet to rule upon. Apple's legal suits against other key Android OEMs (Samsung and Motorola) also include claim violation of such patents. Consistent with the importance of this IP, Apple's recent settlement of its patent dispute and accompanying licensing agreement with Nokia does not appear to involve these patents."
Looks like Nokia might have made a wise decision to go with Windows Phone, after all, since going with Android might have invalidated the nice cash outlay and ongoing royalties it won against Apple recently, for infringing on its own patents - this kind of money is no small change for the troubled N1 cell phone maker.
via SEObytheSea & CNN
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50 Comments
1. snowgator posted on 29 Jul 2011, 09:17 7 2
Again, it may not be a popular stance, but I believe Apple has a case against Android powered Handsets. I still do not believe that there is a chance of banning any device from the shores of the U.S. But I do believe Google has painted their handset makers into a corner. Apple will get cash from Android sells, just like fellow giant Microsoft does. Maybe enough that handset makers will start to move away from all-out adoption of the OS. That is what Apple's end game may be to help preserve their position for the future.
Also could put the Tablet market behind the iPad for a long, LONG time.
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4. wumberpeb posted on 29 Jul 2011, 09:38 5 7
What a joke...big companies are buying a quarter billion patents from other big companies just to survive another big company's vindictive lawsuits.
Is this the only news I'm hearing lately? Sure seems that way with everyone in court rooms...
I'm guessing Rambus gave some pointers to Apple on how to properly sue like an asshole
36. 530gemini posted on 29 Jul 2011, 15:22 2 1
@wumberpeb. It's easy for you to make such a comment because you do not own a multi-billion dollar company. You are not protecting products that earn billions of dollars. I guess you will never be an asshole :)
50. howdydoody (unregistered) posted on 31 Jul 2011, 21:27 0 0
haha, your point is ironic. Apple's products already earn billions of dollars, why should we feel sorry for them if they lose a couple million to Android handset manufacturers. What's the worst that could happen? Apple might not be able to hire that one additional lawyer instead of pumping the money into R&D? aw....breaks my poor, little aggravated-consumer's heart.
5. Arashal (unregistered) posted on 29 Jul 2011, 09:52 4 6
What a shame for apple. See, if you want to pull the battle to the court not to the market, you receive bad complication!!!
37. 530gemini posted on 29 Jul 2011, 15:24 2 1
@arashal. Which is more shameful? Infringing or protecting an IP? Apple is doing very well in the market by the way.
44. remixfa posted on 30 Jul 2011, 09:29 4 0
well, since apple is doing both, why dont u tell me? :)
47. owned (unregistered) posted on 30 Jul 2011, 12:51 1 0
Gemini got pwnd!
6. joey18 posted on 29 Jul 2011, 09:53 2 4
this why not follow rules then start copy staf from another companys apple is great never lead those loooserr steal there products
7. Nuadar (unregistered) posted on 29 Jul 2011, 09:59 1 1
Funny think is that they are suing Motorola...Motorola has nearly 20k patents in areas that are very very important in mobile industry...if they would want(and at some point they will want)they could easily sue hell out of apple too...
Its seems so messy and boring with one company sueing ech other...its not good for market...
8. taco50 posted on 29 Jul 2011, 10:04 4 1
Apple has a right to protect themselves. Their innovation made iPhone the most popular phone in the world. Now other companies are making money off Apple's hard work.
10. ngo2dd posted on 29 Jul 2011, 10:33 1 4
Really hard work? The patient that HTC is infringing on was from 1996 before apple has anything to do with smartphone. One of them was turning text into link. Many of those patient where brought out from other company. The gesture was not a Apple patient, they just brought the company that own it. You are a troll dude. How about those Fact.
11. taco50 posted on 29 Jul 2011, 10:59 4 2
You're the troll Apple revolutionized the smartphone market and that's a fact. Look at the smartphone selection before the iPhone was launched it's night and day.
16. Sniggly posted on 29 Jul 2011, 11:30 3 2
Taco, do you really think only Apple could've pulled off a product like the iPhone?
Regardless, while I agree that a company should be able to protect itself against infringement on its IP, right now it is attempting to use government force in order to eliminate Android from the market entirely based on patents which are pretty nonspecific. If Apple has its way, no one else will be allowed to make touchscreen smartphones period. This is the eventuality that Apple clearly wants.
And I f**king hate any company which uses government force to get what it wants. Maybe I'm an idealist, but that's the way I feel.
26. taco50 posted on 29 Jul 2011, 12:13 2 0
I'm not saying only Apple could have pulled it off, but they did pull it off first. IP is everything in the software world. They came up with new and intuitive ways to interact with your phone. I don't see that HTC or anyone else gets banned, but they should have to pay royalties just like any other company. This is part of the process. Nokia collects royalties from Apple, Microsoft from HTC are just a couple of examples. Right now HTC is using something they didn't come up with and not even paying for it.
32. Sniggly posted on 29 Jul 2011, 13:26 0 0
And I'm sure that if the court sides with HTC they'll gladly pay a fair price. But remember that Apple isn't asking for royalties: they're asking for HTC to be completely banhammered from the US market.
45. xenover posted on 30 Jul 2011, 11:21 1 0
Sniggly, you always know what you're talking about. I like that.
Peace
46. Sniggly posted on 30 Jul 2011, 11:45 0 0
Thank you, xenover. I like knowing what I'm talking about. :)
