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Old 07-19-2011, 11:28 AM   #1
RockdaMan
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HTC/Apple Patent Fight

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On Friday, a U.S. International Trade Commission administrative law judge issued an initial ruling that HTC violated two key patents owned by Apple.

The decision was a blow to HTC, dragging its stock to a six-month low in Taiwan trading yesterday and raising uncertainty about the company.
If the ITC's full panel makes a final decision that goes against HTC, the company could face a ban on importing its smartphones.

More importantly, the two patents are seen as crucial to Android and could potentially affect other handset manufacturers. Samsung Electronics is already in a patent fight against Apple.

HTC has said it plans to appeal the initial judgment, although legal experts say overturning an administrative law judge's ruling is rare.
HTC's phones won't be banned from the US...they'll end up paying Apple a set sum per handset like many of the Android handset makers pay MS for violating their patents. The more Android sells it seems, the better off for MS and Apple...

http://news.cnet.com/8301-1035_3-200...#ixzz1SZ79IOS4
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Old 07-19-2011, 12:54 PM   #2
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HTC's phones won't be banned from the US...they'll end up paying Apple a set sum per handset like many of the Android handset makers pay MS for violating their patents.
Don't get your hopes up! Apple has also lost elements of the first stage of another suit involving HTC, so Apple and HTC are dead even so far. The suit involves patents originally developed by S3, but Cher Wang, the chairwoman of HTC just recently bought S3.
http://www.bloomberg.com/news/2011-0...e-u-s-itc.html
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Old 07-19-2011, 01:03 PM   #3
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I thought I read somewhere this morning Google will be backing htc during the appeal. I assuming it will be providing some extra legal and financial backing .
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Old 07-19-2011, 03:49 PM   #4
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Go google! Glad the didnt just write them off
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Old 07-19-2011, 06:21 PM   #5
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Originally Posted by Dave_S View Post
Don't get your hopes up! Apple has also lost elements of the first stage of another suit involving HTC, so Apple and HTC are dead even so far. The suit involves patents originally developed by S3, but Cher Wang, the chairwoman of HTC just recently bought S3.
http://www.bloomberg.com/news/2011-0...e-u-s-itc.html
That is expected to slightly minimize, not cancel the payout that Apple receives.
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Old 07-19-2011, 06:44 PM   #6
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Next Kodak is going to force Apple to turn off the cameras on all their iPhones and iPads. This is going to get pretty hairy...
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Old 07-19-2011, 08:51 PM   #7
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If you can't beat them sue them...
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Old 07-19-2011, 10:07 PM   #8
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I am not sure why apple needs to sue they are already selling as many as they can produce at the moment. Microsoft suing I can understand as they have been pushed out of the market so need to find ways to make money of it as well as force manufacturers to produce
and sell W7 devices.
Apple are staying ahead in the hardware by bringing latest stuff in the market first and then getting steeper discounts then its competitors over the life of the hardware. As they gain more market share in the desktop I expect them to do this for more for desktops and laptops which should accelerate its Desktop Market share as well.
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Old 07-20-2011, 01:39 AM   #9
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I am not sure why apple needs to sue they are already selling as many as they can produce at the moment.
Lets break it down:

Quote:
Apple on Tuesday announced record revenue and profits for another consecutive quarter
Quote:
The report indicated that iPhone sales grew 142 percent, and iPad crushed it with growth of 183 percent. Apple reportedly sold 20.34 million iPhones and 9.25 million iPads in the quarter.
Quote:
iPhone continues to be adopted as a standard across the enterprise, with 91% of the Fortune 500 testing or deploying the device
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57% of global 500 companies are testing or deploying iPhone, fueled by strong employee demand and opportunities for custom app development
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Last quarter we sold more iPads in K-12 than we did Macs
Quote:
After overcoming supply shortages for the iPad 2 following its March debut, Apple saw sales of the tablet soar. The device is now its second-biggest revenue source -- behind the iPhone -- less than two years after first being introduced.
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Cook said, “We have a very simple view here, we love competition, we think it’s great. But we want people to invent their own stuff. We’re going to make sure we defend our portfolio.”
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Old 07-20-2011, 01:46 AM   #10
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Let us hope Apple will start inventing their own stuff again --- it has been many years since they came up with the Newton!
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Old 07-20-2011, 02:01 AM   #11
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That is expected to slightly minimize, not cancel the payout that Apple receives.
That sounds much more like an Apple hopeful opinion than reality. The S3 patents are essential while HTC "says" that the Apple patents can be worked around if actually upheld. In any case, the game between Apple and HTC is still far from over, and the other possible countersuits have not even started yet. This situation sort of reminds me of the suits and countersuits between Qualcomm and Nokia a few years ago. Very expensive for both parties.
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Old 07-20-2011, 02:05 AM   #12
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Let us hope Apple will start inventing their own stuff again
Not the Schmidt quote.

Stuff I read on the Internet about that:

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The idea that Apple, of all companies, is not innovating in the mobile marketplace is completely absurd: jeez, a year and a half after the first iPad, Android has yet to power a credible competitor.

Quote:
Cynics might argue Schmidt’s comment draws from nervousness on Google’s part because Android backers are increasingly discovering hidden costs as Microsoft and Apple emerge as holders of patents crucial to Google’s mobile operating system...

...Microsoft is already taking money from five Android vendors for patent protection, including HTC which is said to pay five bucks each time it ships an Android handset...
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Google opened the bidding for the more than 6,000 Nortel patents in April with an offer of $900m...
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Old 07-20-2011, 02:09 AM   #13
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Sure Android has plenty of credible competitors to the iPad. Asus, Toshiba, Motorola, Samsung, all are good enough. It is their marketing that isn't up to par.
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Old 07-20-2011, 02:15 AM   #14
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Originally Posted by Dave_S View Post
The S3 patents are essential while HTC "says" that the Apple patents can be worked around if actually upheld.

Worked around? So they were stealin...umm..infringing?

Quote:
The charade that Android is a free mobile operating system is over. The patent headache for Google means that Apple, Microsoft and potentially Oracle could collect fees on Android.
Quote:
Morgan Stanley analyst Jasmine Lu said that HTC bought S3 for patents so it could better fight Apple, but the ITC takes away negotiating leverage.
Quote:
Barclays Capital analyst Dale Gai said in a research note:
Our base case remains that HTC will seek a settlement with Apple in the next six months, by paying out a certain amount of the damages (a portion of which has been set aside from previous earnings), and/or future licensing royalties, subject to negotiations with Apple for HTC’s S3 patents (which won an initial ruling against Apple’s infringement on July 1, 2011). In the worst case, if HTC agrees to pay US$5 to Apple for each smartphone it sells in the US, we estimate the impact on EPS will be 4-5% in 2012.
http://www.zdnet.com/blog/btl/htc-pr...-patents/52545
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Old 07-20-2011, 02:27 AM   #15
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Worked around? So they were stealin...umm..infringing?
That is a possibility, but not yet conclusively decided. But since Apple has been "stealing" from HTC and Kodak among others, HTC must be in pretty good company by your standards. FWIW, even Samsung may yet get a bite of the Apple.
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