Advisors: Apple Should Drop Patent War, Seek Alliances with Android-Based Phone Makers
December 29, 2011 10:26 AM
comment(s) - last by
Advisory firms say Apple should look into other avenues and settlements in the near future to avoid possibly having to depend on other companies' technology at some point
After a long year of
fighting mobile patent wars
with the likes of Samsung, HTC and Motorola, some are suggesting that Apple seek a different approach and start finding some common ground with the Android-based phone makers for the sake of its shareholders and ultimately its future.
Apple spent much of 2011 suing Android users for infringement, claiming that smartphone and tablet makers like Samsung were copying Apple's design and proprietary software. Apple was successful in a few instances, such as the ban on Samsung's Galaxy 10.1 tablet in both Australia and Germany, but later on, a higher Australian court
overturned the previous ruling
and a German judge made it clear that he wouldn't likely maintain the import ban on the tablet.
Apple's use of patent wars to thwart competitors is working for now, since it's costing rivals millions of dollars and poses as a distraction. Some say Apple shouldn't have to seek any sort of alliance with Android-based phone makers, such as licensing agreements, because it's the "leader."
"Apple has the patents, the money and the expertise to go to war," said Christopher Marlett, chairman and co-founder of investment bank MDB Capital Group. "I just don't see why Apple would seek détente, since they're the clear leader. Until they're hit with an injunction by Google or Samsung, they don't need to get serious about licensing."
However, Kevin Rivette, a managing partner at intellectual property advisory firm 3LP Advisors LLC, said that this approach probably isn't the best way to go. According to Rivette, Apple should look into other avenues and settlements in the near future to avoid possibly having to depend on other companies' technology at some point.
"A scorched-Earth strategy is bad news because it doesn't optimize the value of their patents -- because people will get around them," said Rivette. "It's like a dam. Using their patents to keep rivals out of the market is like putting rocks in a stream. The stream is going to find a way around. Wouldn't it be better to direct where the water goes?
"If I'm Apple, I want divided royalties [from Android licensees]."
Some suggestions for Apple include going after out-of-court settlements while dropping patent claims if Android-based phone makers agree
not to use Apple technology
for six months or even a year. Later, Apple could cut the Android users a deal such as offering Samsung more access to certain Apple technologies.
Also, Apple could attack new competitors in the market, such as Amazon with its Kindle Fire tablet, by allowing competitors like Samsung to use its proprietary iTunes service. This could boost Samsung's sales, make the company more dependent on Apple instead of Google, and thwart Amazon all at the same time.
it's unlikely that Apple will make such a move
anytime soon (if at all), some shareholders and analysts believe that stepping out of the tightly-bound proprietary model would help Apple gain access to rivals' technology while sharing its own under certain conditions. This new method could ensure a longer lifespan for the company's popular devices and software. With $81 billion in cash and investments already, it couldn't hurt the tech giant to branch out a bit.
The Washington Post
This article is over a month old, voting and posting comments is disabled
RE: They better quit it
12/30/2011 7:13:52 PM
Reflects the age of the company more than anything.
If you haven't noticed, they're buying up big in IP to compensate. Most of the legal offense is coming from Apple, Microsoft, Oracle, etc. All of which are much older companies.
One of the best forms of defense is attack. So don't be surprised if Google comes firing back, particularly with the Motorola acquisition. Apple might just find themselves on the receiving end of far less dubious patent infringement claims if they keep up what they're doing.
"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard
Samsung Now Making Apple's Smartphone/Tablet Chips in Texas
December 16, 2011, 1:01 PM
Australian Court Silences Apple's Cries, Allows Samsung Tablet to Launch
December 9, 2011, 1:18 PM
Apple Granted Injunction to Prevent Samsung Galaxy Tab 10.1 Sales in Australia
October 13, 2011, 4:15 AM
Samsung's Australian Peace Offer is Rejected by Apple
October 4, 2011, 10:42 AM
Die Shots Confirm A8 Packs Six PowerVR "Rogue" GPU Clusters
September 22, 2014, 4:05 PM
WSJ: Yes, HTC Nexus 9 ("Babel") is Incoming
September 22, 2014, 4:00 PM
Quick Note: Flagship BlackBerry Passport Smartphone to be Priced at $599 Unsubsidized
September 22, 2014, 3:31 PM
ChipWorks Confirms Apple's iPhone A8 SoC Switch to TSMC
September 22, 2014, 1:41 PM
A Year After It Was First Announced, PlayStation TV Headed to U.S. for $99
September 22, 2014, 11:37 AM
4.7" Samsung Galaxy Alpha to Grace AT&T’s Network Sept. 26 for $199 on Contract
September 22, 2014, 11:16 AM
Most Popular Articles
HTC Preps Nexus 9 With Nvidia K1 64-Bit "Denver" SoC, Android L Onboard
September 10, 2014, 10:21 PM
Apple iPhone 6, iPhone 6 Plus Reviews Roll In
September 16, 2014, 9:13 PM
Big Media: If You Want Privacy, You're Probably a Pirate
September 18, 2014, 2:57 PM
Apple Cripples NFC in iPhone 6, 6+ With Developer Ban
September 17, 2014, 1:00 PM
"Decepticon" Driver Triumphs Over Cops in Massachusetts Court
September 5, 2014, 12:07 PM
Latest Blog Posts
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information