Apple Sues HTC

  • Posted: 02 March 2010 10:36 AM

    CUPERTINO, Calif., March 2, 2010 /PRNewswire via COMTEX/—Apple(R) today filed a lawsuit against HTC for infringing on 20 Apple patents related to the iPhone’s user interface, underlying architecture and hardware. The lawsuit was filed concurrently with the U.S. International Trade Commission (ITC) and in U.S. District Court in Delaware.

    “We can sit by and watch competitors steal our patented inventions, or we can do something about it. We’ve decided to do something about it,” said Steve Jobs, Apple’s CEO. “We think competition is healthy, but competitors should create their own original technology, not steal ours.”

    Press Release HERE

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    Posted: 02 March 2010 11:00 AM #1

    It’s about time Apple started suing people for stealing their IP. After all Apple gets hit with plenty of lawsuits simply because they are successful.

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  • Posted: 02 March 2010 11:03 AM #2

    So, it begins at last. After 3 years, nearly every handset maker is making something very like an iPhone hardware replica. Now they’re all committed (having failed with their own ideas of an iPhone killer), Apple says: not so fast.

    I wonder if we’ll see anything like the old Kodak/Polaroid case, where Kodak’s camera and all related media and services disappeared completely from the market.

    A pity patent disputes are resolved approximately a thousand times slower than paint drying.

         
  • Posted: 02 March 2010 11:10 AM #3

    Actually I think this is shot across Google’s bows.

    Why sue Google when you can sue the Manufacturer of the Google phone?

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  • Posted: 02 March 2010 11:11 AM #4

    And of course in HTC they’ve chosen a company without the deep patent portfolios the larger players might bring into play during negotiations.

         
  • Posted: 02 March 2010 11:19 AM #5

    rattyuk - 02 March 2010 03:10 PM

    Actually I think this is shot across Google’s bows.

    Why sue Google when you can sue the Manufacturer of the Google phone?

    To the extent that Android may rely on Apple patented underlying hardware, licensees may want Google to indemnify them, as I believe Microsoft does to some extent for Windows OEMs. So Google may charge them for indemnity. Thus Apple may forcibly turn Google’s business model into Microsoft Mk 2. Android becomes a Windows-style protection racket that manufacturers must pay for.

         
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    Posted: 02 March 2010 11:55 AM #6

    rattyuk - 02 March 2010 02:36 PM

    CUPERTINO, Calif., March 2, 2010 /PRNewswire via COMTEX/—Apple(R) today filed a lawsuit against HTC for infringing on 20 Apple patents related to the iPhone’s user interface, underlying architecture and hardware. The lawsuit was filed concurrently with the U.S. International Trade Commission (ITC) and in U.S. District Court in Delaware.

    “We can sit by and watch competitors steal our patented inventions, or we can do something about it. We’ve decided to do something about it,” said Steve Jobs, Apple’s CEO. “We think competition is healthy, but competitors should create their own original technology, not steal ours.”

    Press Release HERE

    Mature technology is defended. Bit of a turning point for Apple.

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    Posted: 02 March 2010 04:04 PM #7

    I was wondering when Steve Jobs would “mean it” about protecting Apple’s iPhone-related patent portfolio. 

    HTC is apparently a $4.5 billion US company according to its most recent investor filing (it grew -5% YOY).  Going forward, Apple will probably beat that figure with less than a single quarter’s worth of iPhone revenues , so if I had to guess, I’d say “fear of HTC” isn’t an immediate motivation for Apple’s lawsuit.  Is it because HTC manufactures so many Android devices, as some have suggested? It’ll be very interesting to see what happens from this point.

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    Posted: 02 March 2010 05:54 PM #8

    Mav - 02 March 2010 08:04 PM

    HTC is apparently a $4.5 billion US company ...

    I believe it is based in Taiwan.

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    Posted: 02 March 2010 05:57 PM #9

    YIPPEE!

    Go git ‘em Apple.

    Two thoughts.

    One, you normally WAIT for filing patent suits, the reason being, you want to have demonstrated damages to claim, unless and until they have enough units out there, you don’t have much to claim. With time, you can make a claim that every unit they sold, using your infringed technology, is a unit YOU could have sold. Then you take YOUR price per unit X their sales, and that is your outside claim for damages. Looking at the POTENTIAL damages if you lose, and most know the odds of that are, since they KNOW what they “borrowed,” brings them hat in hand to the table to beg for a favorable settlement.

    Two, this is really a PALM gift. I suspect that PALM, given who is there, and the probability that they EXPECTED a lawsuit, went to great lengths to NOT use anything that would be claimable as ported over, or STOLEN along with the PALM team that used to work at Apple. I expect the PALM platform to be VERY much the alternative clean system that ANDROID and HTC are not. Besides, the PALM software is actually the equivalent of, or superior TO our beloved fruit companies offering. So, the “alternative” to ANDROID is to buy out PALM, or license the operating system. I suspect that they would be amenable now to either approach.

    Might be time to take another flyer at some out of the money, leaps on PALM, they are cheap now.

    I have LONG wondered at AAPL’s failure to cut off everyone and anyone they could, for infringement. All one has to do is USE any of these new toys to see how they are apeing and slavishly copying everything from the UI to the app store interface and concept.

    [ Edited: 02 March 2010 06:00 PM by TanToday ]

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  • Posted: 02 March 2010 06:14 PM #10

    Mav - 02 March 2010 08:04 PM

    I’d say “fear of HTC” isn’t an immediate motivation for Apple’s lawsuit.  Is it because HTC manufactures so many Android devices, as some have suggested?

    HTC (unlike Nokia) probably doesn’t have any IP Apple needs, so they are unable to force a deal which could leave Apple’s patents still not verified in court. Secondly, HTC is the primary and most committed handset partner for Microsoft. Nice to slow them down as they work on “Windows Phone 7”*. Thirdly, Google is trying to manipulate the mobile market at arms length. Apple needs to draw them in closer, or force them to revert to proper neutrality.


    *OT: Did you see what Microsoft did there? Another of their slightly dishonest and manipulative product namings. Having fixed the broken Vista OS, they named the fix “Windows 7” for no apparent reason, but now we know why.  They’ve planted a spurious mental identification of Windows 7 with the unrelated next release of “Windows Mobile” (after 6.5). Consumers and tech writers are already slipping into the idea that Windows Phone 7 is a “fixed” Windows Mobile just like Windows 7, even though it’s more acurately described as the new and untried “Zune Phone Silverlight edition”. But nobody talks about that.

         
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    Posted: 02 March 2010 06:16 PM #11

    We’ve just learned that Apple submitted over 700 pages of exhibits to the District Court, which is a little nuts. In addition, the ITC complaint lists a number of specific HTC handsets as exhibits, including the Nexus One, Touch Pro, Touch Diamond, Touch Pro2, Tilt II, Pure, Imagio, Dream / G1, myTouch 3G, Hero, HD2, and Droid Eris. That’s really a full range of HTC phones, running both Android and Windows Mobile, with and without Sense / TouchFLO. Interestingly, the Android sets are specifically included because they run Android, while the WinMo sets are called out specifically for including DSP chips, not anything to do with Windows Mobile.

    ENGAGET seems to be up more than any of the others

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    Posted: 02 March 2010 06:52 PM #12

    HTC History
    Introduction

    HTC Corp, (TAIEX: 2498) produces powerful handsets that continually push the boundaries of innovation to provide true mobile freedom.

    Founded in 1997 by Cher Wang, Chairwoman, HT Cho, Director of the Board & Chairman of HTC Foundation, and Peter Chou, President and CEO, HTC made its name as the company behind many of the most popular operator-branded devices on the market. It has established unique partnerships with key mobile brands, including the leading five operators in Europe, the top four in the US, and many fast-growing Asian operators. It has also brought products to market with industry leading OEM partners and, since June 2006, under its own HTC brand.

    HTC is one of the fastest-growing companies in the mobile sector and has achieved remarkable recognition over the past couple of years. Business Week ranked HTC as the second best performing technology company in Asia in 2007 as well as giving the company the number 3 spot in its Global listing in 2006.

    Since launching its own brand 18 months ago the company has introduced dozens of HTC-branded products around the world.

    Reviewing that lawsuit quickly, it seems as if many of the mentioned patents are dated 1996 and 1997 which would seem to be the acquired FINGERWORKS portfolio, there is no way that HTC could make prior use claims when HTC was only incorporated around then.

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    Posted: 03 March 2010 05:27 AM #13

    stkstalker - 02 March 2010 09:54 PM
    Mav - 02 March 2010 08:04 PM

    HTC is apparently a $4.5 billion US company ...

    I believe it is based in Taiwan.

    Let me rephrase.  HTC is a Taiwan-based company that made $4.5 billion(US) in revenue in FY 2009 (I did a currency conversion based on their New Taiwan (NT) dollars figures)

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    Posted: 03 March 2010 10:01 AM #14

    Well, thinking this one through, if ANROID now is “tainted with questions” that leaves Microsoft coming up with its new phone platform, but that isn’t coming till closer to year end….and you have a lot of firms out there, that need a solid platform to work with, one without pending litigation issues.

    I have long believed that PALM’s webOS is actually a better operating system than our AAPL’s is, hampered by a lack of funds, a crippled teleco partner, and questionable history of legacy issues over the firm, PALM, the OS is slick as can be, and given the absolute certainty that AAPL would go after them, given who is running both firms, IF they were infringing, I’m assuming that the patent issues were a major factor all along, and should be less problematical.

    So, in short, as I said the other day, I see PALM as a failing company, with a HUGE hidden gem, the OS for handsets, leading me to believe that it is a red hot takeover candidate, and given it’s financial death spiral, it most likely would not even be a hostile takeover, meaning quick, fast, and profitable.

    So, I just went in for a handful of PALM August 2010, $7’s CALLS.

    Current trading price for underlying stock is now $6.20.

    Hey, it is like going to Vegas hoping the house will comp you a few meals and a show for playing when things are slow and they need some bodies at the tables.

    Time will tell.

    Made money on the PALM run up to launch, stocks and options, bailed a few weeks after, so trying for a twofer here, double dipp’n on a dying firm.

    It sure beats playing around with the LEPER SISTERS, in my book.

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  • Posted: 03 March 2010 10:51 AM #15

    TanToday - 03 March 2010 02:01 PM

    Well, thinking this one through, if ANROID now is “tainted with questions” that leaves Microsoft coming up with its new phone platform, but that isn’t coming till closer to year end….and you have a lot of firms out there, that need a solid platform to work with, one without pending litigation issues.

    I have long believed that PALM’s webOS is actually a better operating system than our AAPL’s is, hampered by a lack of funds, a crippled teleco partner, and questionable history of legacy issues over the firm, PALM, the OS is slick as can be, and given the absolute certainty that AAPL would go after them, given who is running both firms, IF they were infringing, I’m assuming that the patent issues were a major factor all along, and should be less problematical.

    So, in short, as I said the other day, I see PALM as a failing company, with a HUGE hidden gem, the OS for handsets, leading me to believe that it is a red hot takeover candidate, and given it’s financial death spiral, it most likely would not even be a hostile takeover, meaning quick, fast, and profitable.

    So, I just went in for a handful of PALM August 2010, $7’s CALLS.

    Current trading price for underlying stock is now $6.20.

    Hey, it is like going to Vegas hoping the house will comp you a few meals and a show for playing when things are slow and they need some bodies at the tables.

    Time will tell.

    Made money on the PALM run up to launch, stocks and options, bailed a few weeks after, so trying for a twofer here, double dipp’n on a dying firm.

    It sure beats playing around with the LEPER SISTERS, in my book.

    I Like your thinking and I like your trade. Also not alone apparently .... short term pop in the stock and I bought some shares