There are many different patent, trade dress & IP lawsuits in progress that affect Apple in various ways. Today’s headline sounded pretty bad for Apple at first.

Motorola wins German patent injunction against Apple, but it’s not what it seems
By Nilay Patel on November 4, 2011

Apple’s official statement:

This is a procedural issue that has nothing to do with the merits of the case. This does not affect our ability to sell products or do business in Germany at this time.

http://www.theverge.com/2011/11/4/2539295/motorola-wins-german-patent-injunction-against-apple-but-its-not-what

I wouldn’t go as far as to say “pretty bad.”

Honestly?  I expect Apple to lose a battle or even minor war or two.  I bet Apple does too.  Hey, lawsuits always have an element of uncertainty, right?

Also, I’m quite sure Apple factored litigation uncertainty into its guidance.  It helps that Apple is in a situation where product could be shifted to meet unmet demand in other regions.

Nice analysis, Mr. Patel!  Except for that “judgement” bit.  Only one “e”.  C’mon, you’re a copyright lawyer.  You know better.

This way, the Apple Inc case proceeds immediately to appeal, delivering an earlier resolution, which will be applicable to the Apple Germany case. So Apple believe they will win, and have done this to speed the conclusion.

Drew Bear - 05 November 2011 01:01 AM

There are many different patent, trade dress & IP lawsuits in progress that affect Apple in various ways. Today’s headline sounded pretty bad for Apple at first.

Motorola wins German patent injunction against Apple, but it’s not what it seems
By Nilay Patel on November 4, 2011

Apple’s official statement:

This is a procedural issue that has nothing to do with the merits of the case. This does not affect our ability to sell products or do business in Germany at this time.

http://www.theverge.com/2011/11/4/2539295/motorola-wins-german-patent-injunction-against-apple-but-its-not-what

Motorola wins German patent injunction against Apple, but it’s not what it seems
http://www.theverge.com/2011/11/4/2539295/motorola-wins-german-patent-injunction-against-apple-but-its-not-what
False victory

Here are more examples of headlines that mislead.

Reuters: EU Commission probes Samsung, Apple over patents

ars technica: European Commission investigating Samsung, Apple patent fight

MacDailyNews gets the headline right:

Apple only a witness, not target, of EU inquiry over Samsung’s alleged FRAND patent abuse

There is a lot of consumer confusion over the various types of infringement lawsuits taking place. Media outlets don’t help with linkbait headlines.

I can’t believe Samsung continues to handle themselves in the manner they are. Their lawyers “2001 defense” was beyond absurd.  Retaliating against apple by filing frivolous lawsuits can’t possibly be helping their relationship as a large apple supplier or in the Kurt of public opinion

More Evidence Apple To Make Billions From Google Android
This article talks about Apple patent portfolio, but I liked most the following quote which shows the importance of (multi-) touch UI:

A three-year old touched the TV screen, tried to scroll with one finger and then tried to zoom a part of the screen with two fingers. Touches of the child had no effect. The child yelled, ‘’Daddy, TV is broken, it does not work.”

In arguing against the injunction, Samsung—which is also a huge components supplier to Apple—said Apple’s supply cannot keep up with market demand for smartphone products. Koh recounted the argument in the redacted portions of the ruling.

But Koh then called Samsung’s argument “dubious,” given rebuttal evidence presented by Apple regarding its ability to keep up with demand in the long term.

It is becoming very clear that Apple can not keep up with the enormous demand for the iPhone.

Apple has a long term plan.  When WS finally sees these patent issues resolved and recognizes that the iPHone is here to stay for many years, then we will be greatly rewarded.

In three years.  That is my theory of when things will look much brighter for Apple then they look today.

[This post was removed because the moderators arbitrarily censor.]

the_dragonfly - 06 December 2011 12:46 PM

... they’ll be licensing iOS.  (And the patents, of course.)

They’ll put forth strict terms for the manufacturing of these mobiles and they’ll get a very nice cut of the sales.

Please explain more.  Don’t understand how is it consistent with Apple’s policy of controlling the design and user experience.  I like the idea of Apple partnering and sharing the fruits of success so long they don’t believe like hyena turning back to eat Apple up.

I don’t believe Apple will ever license iOS to third parties like HTC.  An OS license on this class of device would net $10 -$20 per device MAX.  You would need major market expansion to even have a hope on breaking even on such a proposition.  For every device that HTC sells instead of Apple, something like $250 would be lost in gross margin, in exchange for that license fee.  I assume ASP of something like $600 at GM of 40%.  That may be high, but the principle would still apply.

Then you have the race to the bottom that these kinds of suppliers thrive on.  Net result is the destruction of the Apple brand and loss of cachet and exclusivity.  I just don’t see this happening.

[This post was removed because the moderators arbitrarily censor.]

$250 for a software license is a non starter.  It will never happen, especially when Microsoft is an alternative for less than 1/10 the price. The economics will never work in this market with a tax of that size. My company is in the hardware business and in a previous life, we used to work with HTC. $250 is so far away from industry norms, that it does not even pass the laugh test.  We pay under $15 for an OS from Microsoft and we ship relatively tiny volume. 

Apple can solve their volume issues many other ways, instead of turning guys like HTC into a contract manufacturer.  I just don’t see Apple having any incentive to license the OS.  I would bet on Scarlett Johanson stalking me day and night, before I expect that to happen.

Lstream - 06 December 2011 07:53 PM

$250 for a software license is a non starter.  It will never happen, especially when Microsoft is an alternative for less than 1/10 the price. The economics will never work in this market with a tax of that size. My company is in the hardware business and in a previous life, we used to work with HTC. $250 is so far away from industry norms, that it does not even pass the laugh test.  We pay under $15 for an OS from Microsoft and we ship relatively tiny volume. 

Apple can solve their volume issues many other ways, instead of turning guys like HTC into a contract manufacturer.  I just don’t see Apple having any incentive to license the OS.  I would bet on Scarlett Johanson stalking me day and night, before I expect that to happen.

...Or, more accurately, Scarlett Johanson hiring a look-alike to stalk you in neighborhoods you don’t live in…

Of course, Apple will never let Scarlett hire look-alikes that don’t meet the high standards of the original.

As far as the patents for multitouch go, Apple has no requirement to share the IP.  By definition the patent owner has exclusive rights to their invention.  The other phone makers can go back to making phones in the style pre iPhone.  I look forward to the ITC ruling on HTC next week, and if Apple is successful in obtaining an injunction, the rest of the Android makers will be looking for cover.