The second day of a two-day hearing between Apple and Samsung has brought resolution to a user interface-related patent claim by the iPhone maker. Webwerld editor Andreas Udo de Haes, who covers the hearing from a Dutch court room, wrote on Twitter that carriers are currently testing a firmware update for Samsung’s Galaxy smartphones. It is said to tweak the user interface of the photo gallery program so it doesn’t infringe anymore:
Meanwhile, Samsung can get around this with an update for Android that changes the UI of the photo gallery, so is doesn’t infringe anymore
Some people are reporting that today’s 2.3.4 firmware update lost the bounce effect on whole Android and replaced it with the blue fading effect. For more intricacies of the legalities, knock yourself out here.
It’s litigation day as Apple and Samsung battle it out in courts the world over. In a two-day hearing which began this morning in Australia a judge asked for more time to study Apple’s claims, resulting in a brief Galaxy Tab 10.1 launch delay until the end of the month. Meanwhile, the first round of hearings is underway in The Hague over Samsung’s accusations that Apple’s iPad and iPhone infringe on Samsung’s wireless patents. The Korean company is seeking a ban on those products in The Netherlands.
Apple is represented by Rutger Kleemans (Freshfields) while Samsung’s legal counsels are headed by Bas Berghuis (Simmons & Simmons). Per information sourced from Webwerld editor Andreas Udo de Haes on Twitter and this Nu.nlreport, Apple says Samsung is seeking a 2.4 percent charge of chip price for every patent. Apple has called those demands “simply excessive”. Sounds to us like Apple might have awoken the beast. Apple says because the two parties are still negotiating a licensing agreement of sorts, granting an injunction would be premature.
The Mac maker’s legal sharks stress Apple is buying its components from Intel and Infineon, hence no need for royalties to Samsung. Interestingly, Apple’s lawyers also explicitly stated that iOS devices sold in Europe do not use Qualcomm silicon found in CDMA versions of iPad and iPhone. Apple also said Samsung changed the license to Qualcomm to exclude Apple. In a nutshell, Apple’s argument is that Samsung’s technology and patents are already incorporated in Intel’s chipsets.
Samsung obviously disagrees and argues Apple has more than ten component suppliers and is obscuring them purposefully in order to make determining which components infringe on Samsung’s patents that much harder. Apple launched the iPhone in Holland back in 2008 without securing the necessary licenses, the lawyers for Samsung said. Apple denied Samsung’s claims and said Samsung, its parts supplier, wouldn’t demand a license until 2010 because Apple was an important customer. According to this Guardianarticle, the Apple account is worth fourth percent of Samsung’s total business…
This is a Samsung-branded Windows 8 tablet Microsoft is giving away to BUILD attendees today. Wanna take bets on possible actions from Apple? Go past the break for unboxing clips. Image courtesy of MobileTechWorld
The latest in the ongoing patent saga involving Apple, Google, Motorola and Samsung includes an unexpected twist as Samsung goes after iPhone and iPad with a complaint filed before a Paris district court in July. The filing alleges infringement of Samsung’s three technology patents, reportsAFP. The first hearing is expected in December of this year.
Meanwhile, patent expert Florian Müller notes on his blog FOSSPatents that Apple has filed motions to temporarily halt two Motorola lawsuits until Google completes its $12.5 billion acquisition, which shook the technology world last month. Put simply, Apple argues Motorola waived its rights to sue when it transferred patents to Google. Apple wrote:
To further its pending acquisition by Google, Motorola has surrendered critical rights in the patents-in-suit, such that Motorola no longer has prudential standing to pursue this action. According to the publicly-filed Merger Agreement, Motorola has ceded control of the most basic rights regarding the patents-in-suit
As you know, Google has transferred some of the Motorola patents to HTC, in addition to the ones acquired from Palm and Openwave Systems. HTC then used those patents to counter-sue Apple. Back to Apple vs. Samsung…
Financial Timestoday opined that Samsung needs to hit the reset button, predicting a licensing agreement of sorts provided Apple succeeds in blocking Galaxy products in the U.S. next month. Contrary to the reports, the publication thinks “Apple is restricted from taking its chip business to Samsung’s rivals in Taiwan because Samsung offers a complete package of components that other firms cannot match”. However, there are indications that Apple’s been lowering Samsung orders for some time and it’s widely believed the company is eager to take its silicon business to TSMC beginning next year.
Japanese carrier Docomo sold 100,000 Galaxy S II phones in the first three days and today they launched an LTE version of the Galaxy Tab tablet.
Apple’s patent infringement claims against Samsung now include twelve courts in nine countries on four continents. Reutersreported this morning that Apple is now formally suing Samsung in Japan and seeking to block sales of Samsung phones and tablets in the country:
Apple has filed a suit with the Tokyo District Court seeking the suspension of sales of Galaxy S and its sequel S II smartphones and the Galaxy Tab 7 in Japan, according to sources close to the matter. The first hearing was held on Wednesday, the source said.
The iPhone maker is seeking 100 million yen, or approximately $1.3 million, in damages. Apple previously had filed four complaints before the Tokyo District Court, according to patent expert Florian Müller. Coincidentally, Japan is also another high-revenue market for Apple. Other countries where Apple took Samsung to court include Germany, U.K., U.S., Australia and more.
Samsung’s Galaxy S has outsold the iPhone in Japan last year. In July of this year, Samsung announced sales of three million Galaxy S II phones in 55 days, the successor to the popular Galaxy S handset. Samsung is also the world’s #2 smartphone maker, after Apple. The Korean company surprised investors by deciding against divulging sales of phones and tablets in the face of growing competition with Apple. Android-based handsets and iPhones together hold well over three-quarters of the Japanese market for smartphones, forming a duopoly which is present in pretty much every other market where Google and Apple compete are locked in the battle for smartphone supremacy.
Apple is projected to sell 86.4 million iPhones worldwide in 2011 and its iPad is dominating the post-PC world with approximately two-thirds of all tablets sold worldwide. In an interesting twist, court in Australia recently advised the Cupertino, California-headquartered gadget giant to divulge iPad 2 sales figures in the U.S. and U.K. if the Samsung sales blockade is to hold. In a nutshell, judge wants proof that the similarities between Samsung’s Galaxy Tab 10.1 tablet and iPad 2, which had been first brought to light by Apple, have in fact hurt iPad 2 sales.
Last week Apple successfully banned the new Galaxy Tab 7.7 from the IFA show in Germany. Samsung will also cease to market that device in the country until its legal dispute with Apple is resolved. Samsung, also Apple’s supplier of memory chips, processors and other components, considers litigation with Apple as “destiny”, their CEO Choi Gee-sung told reporters in Korea last week:
You may have heard about “prior art”. In patent law, prior art is basically all information made available publicly before a date which might be relevant to a patent’s claims of originality. Hence, if any invention can be described in prior art, its patent can be invalidated. Samsung is resorting to some pretty sci-fi (literally!) arguments in its legal spat with the Cupertino gadget maker, having gone as far as citing Stanley Kubrick’s ‘2001: A Space Odyssey’ movie as prior art against Apple’s tablet.
The finding, discovered by intellectual property expert Florian Mueller on his blog FOSS Patents, stems from page two of an exhibit Samsung filed with the U.S. District Court for the Northern District of California. The document reads:
Attached hereto as Exhibit D is a true and correct copy of a still image taken from Stanley Kubrick’s 1968 film “2001: A Space Odyssey.” In a clip from that film lasting about one minute, two astronauts are eating and at the same time using personal tablet computers. The clip can be downloaded online at http://www.youtube.com/watch?v=JQ8pQVDyaLo. As with the design claimed by the D’889 Patent, the tablet disclosed in the clip has an overall rectangular shape with a dominant display screen, narrow borders, a predominately flat front surface, a flat back surface (which is evident because the tablets are lying flat on the table’s surface), and a thin form factor.
The prior art claim is in Samsung’s defense against Apple’s motion for a preliminary injunction. The company recently claimed in a Dutch court that Apple doctored Galaxy smartphone images.
You probably know by now that Google’s move to acquire Motorola Mobility for $12.5 billion was seen as one specifically focused on acquiring their more than 17,000+ patents, many of which are thought to be key in protecting Android from other smartphone makers (Apple and Microsoft) in court. However, according to a report from Bloomberg, only 18 of those patents will be essential in fighting patent-infringement related cases against, namely, Apple.
According to CEO of ICAP Patent Brokerage Dean Becker (“global leader in intellectual property brokerage”) Google only needs a few of the 17000+ patents to protect it’s mobile IPs, he added:
“There are a lot of sweet patents in that portfolio…”- Dean Becker, ICAP Patent Brokerage
The patents cover a little bit of everything that we’ve come to expect from a smartphone; touch-screen gestures, antenna designs, location-based services, email,etc. Among some of the more notable patents that will certainly provide value when protecting Android include one from 2001 that details disabling a “touch sensitive” display that detects a user’s head in relation to the device to prevent accidental input (sound familiar?), another shows a feature that would allow users to control when their location data is sent over a network via GPS (lack of these types of features were recently the subject of debate at a senate judiciary hearing in May where Apple and Google were questioned on their practices in relation to user location data). Other noteworthy patents include one related to increasing data storage for users and others that detail features we see in most modern smartphones.
Motorola, even before being acquired by Google, was and still is involved in mobile related legal issues. Most recently Apple filed patent-infringement complaints with the ITC in October, and also sued the company in civil court for “a pattern of unfair, deceptive and anticompetitive conduct”. Claims which also mirror those of Microsoft. Motorola seems to be confident in their patents, however, by going after Apple in lawsuits on three separate occasions and filing their own complaint with the ITC. Expand Expanding Close
Apple has already tried to ban the Galaxy Tab 10.1 in most of Europe (injunction lifted), but today they are going even farther with their legal proceedings, asking a Netherlands court to ban all Galaxy series devices. The ban includes the widely popular Galaxy S II, which has seen some success in Europe. On top of trying to ban sales, Apple is trying to push the thought of Samsung sending a letter to all of their partnered retailers within 14 days to end sales. Stated strongly:
“For the record we would like to mention the fact that by storing, offering and/or selling of the above mentioned Galaxy smartphones [and tablets], you commit infringement of the intellectual property rights of Apple Inc.,”
The trial will take place in The Hague, Netherlands September 15th, and the judge said if he grants any injunctions, they would take effect no sooner than Oct. 13. (Webwereledvia Computerworld)
It’s no secret patent-related legal disputes have become the subject of most media coverage lately…Whether it’s Apple halting sales of Samsung’s tablets, HTC going after Apple, or Google snatching up Motorola to beef up their patent portfolio, it’s clear the company with the most patents will have an advantage over others in the legal proceedings that we’re bound to continue encountering down the road. This is why we’re intrigued by the graphic above (via GigaOM)from mobile analyst Chetan Sharma charting the number of issued patents (in the US and Europe) between 1993 and 2011.
While these estimates of mobile communications related patents don’t take the quality of patents into account (which is obviously a huge factor in determining their long-term value), you can see from the breakdown below that Nokia and Samsung top the list, with the other expected players including IBM, Microsoft, Sony, Motorola, and Intel following.
Noticeably far down the list is Apple, the one company who seems to have had more success than others fighting patent-related issues recently. Again, these numbers in no way represent the quality of patents and the ability for companies to protect their IPs in the courtroom… which is also a good indication that perhaps we should be looking more closely at the quality of patents rather than the sheer number. Expand Expanding Close
GigaOm is reporting that many companies were in the race to buy Motorola Mobility, including Microsoft. GigaOm contributes this as one of the reasons why Google made the purchase for such a high price, so other manufacturers couldn’t hurt their ecosystem even further with IP lawsuits.
The reason Motorola didn’t go with Microsoft was due to the fact Microsoft only wanted the company for its patents, rather than running a hardware business.
Talks between Google and Motorola began five weeks ago, reports GigaOm. Their sources say CEO Larry Page and Motorola CEO Sanjay Jha were talking directly and only a few other executives were brought in. Also, Android co-founder Andy Rubin wasn’t bought into the talks until recently. The deal Google has struck gives the company 17,000 current patents and 7,500 patent applications.
Newsweek Technology Editor Dan Lyons makes some great points this morning regarding Google acquiring Motorola Mobility for $12.5 billion. First he talks about TechCrunch MG Siegler’s remarks that Google made themselves “look like huge asses in retrospect”. Lyons pretty much says Siegler’s opinions were just foolish. Lyons also makes an interesting point that Google most likely didn’t actually want the Nortel patents, they were just driving up the price for Apple and Microsoft with their PI (3.14 billion) bid.
And today it all makes sense. Google just sandbagged its rivals. The whole thing was a rope-a-dope maneuver. Google never cared about the Nortel patents. It just wanted to drive up the price so that AppleSoft (those happy new bedmates) would overpay. Today, with the Motorola deal, Google picks up nearly three times as many patents as AppleSoft got from Novell and Nortel. More important, Google just raised the stakes in a huge way for anyone who wants to stay in the smartphone market.
In the end of things, Google is earning 3 times the patents than they would have in the Nortel deal, but for three times the price. One last word from Lyons:
The web is abuzz with the news that Google is snapping up Motorola Mobility in a deal valued at $12.5 billion. And while there are concerns that Google is pursuing the deal purely for the patents, CEO Larry Page said in a blog post that the agreement will let them “supercharge the Android ecosystem” by fending off patent threats from Apple, Microsoft and other companies. In addition, he dropped hints of “wonderful user experiences” in a nod at tightly integrated devices that Apple famously builds.
Now, conventional wisdom has it that the transaction will put other Android backers in an uneasy position as they get to compete with Motorola on an uneven playing field. Not to worry, Boy Genius Reporthas reactions from major Android backers that appear to be upbeat about the deal. For example, J.K. Shin, president of Samsung’s Mobile Communications division says:
We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem.
The publication quoted similar statements by executives from HTC, LG and Sony Ericsson that Google published on their site. On the other hand, as noted byBusiness Insider, Android backers cannot be satisfied with the outcome of this time, regardless of their voice of support. TIMNwonders what this deal means for the future of Motorola products and the level of Google’s involvement in product development. So far, this is about intellectual property. Motorola Mobility CEO Sanjay Jha revealed in a conference call discussing the Google deal that his company controls a rich patent portfolio of 17,000 issued patents and 7,500 patent applications filed, indicating that Google will use this patent war chest as a powerful leverage against legal pressure from rivals Apple and Microsoft.
Google’s chief legal officer David Drummond said this in the call:
With Google execs stepping out of character to share their frustrations with Microsoft and Apple “banding” together to acquire patents, it seems at least a few execs in Redmond are determined to set the record straight, and for good reason given the fact the company is slated to earn more off Android than their own Windows Phones, according to analyst Horace Dediu.
In response to the open letter from Google’s Vice President and Chief Legal Officer David Drummond accusing Microsoft and Apple of “banding” together to acquire mobile device related patents, Microsoft’ general counsel Brad Smith posted the following via his Twitter account this morning:
“Google says we bought Novell patents to keep them from Google. Really? We asked them to bid jointly with us. They said no.”
Microsoft surely doesn’t want to tarnish their relationship with Google, with Android-based HTC phones bringing in three times as much profit in the second quarter in comparison to their own Windows Phone devices. It makes you wonder why Microsoft is spending billions developing and bringing Windows Phone handsets to market when Android devices are clearly their bread and butter in the mobile space. Expand Expanding Close
Over the past few weeks, the patent arms race has been accelerating and the latest comes in a Bloombergstory that has old frenemies – Apple, Google and Samsung – locked in a fight for InterDigital’s patent portfolio. Samsung is said to be interested the most in InterDigita’s intellectual property their CEO claims is “stronger” than the 6,000 Nortel patents the Apple-led consortium recently acquired for $4.5 billion. People familiar with the matter tell the publication Samsung has been “approached to make a bid”:
Samsung is looking at the patents along with Apple Inc. (AAPL), Google Inc. (GOOG) and other potential bidders, said the people, who asked not to be identified because the talks are private. InterDigital, which holds patents related to mobile technologies used to transfer information, said last month that it hired bankers as it considers a sale.
InterDigital’s patent portfolio covers technology for high-speed cellphone networks “now used by the world’s biggest handset makers”, including Apple’s iPhone as well as BlackBerry and Android phones. The portfolio includes 8,000 patents in total and is estimated to be worth $5 billion or more. “To hedge the risk, Samsung could go ahead with bidding, although they may have to pay a big premium”, says Shinyoung Securities Co. analyst Lee Seung Woo…
Anticipating Android backers will face legal hurdles as Apple now has the upper hand in its case against HTC (here and here), Google has stepped up and bought more than a thousand IBM patents for an undisclosed sum. The news was first reported by the blog SEO by the Sea and picked up byThe Wall Street Journal. The search company might use IBM inventions as a leverage against pending lawsuits that indirectly involve its Android software.
Google failed to outbid the Apple-led consortium which paid $4.5 billion for Nortel’s treasure chest of more than 6,000 patents covering wireless technologies, among them crucial inventions related to fourth-generation cellular networks. The new patent deal is in line with Google’s focus on snapping up patent portfolios left and right in creating a “disincentive for others to sue Google”, as noted on their official blog back in April. The 1,030 granted patents Google bought from IBM cover varied technologies, including…
Google’s executive chairman Eric Schmidt has gone on the offensive and bashed Apple over patent infringement claims the company had filed against high-profile Android backers such HTC and Samsung. In what could be viewed as an effort to sway the public perception, he launched a nasty attack speaking at Google’s Mobile Revolution conference in Tokyo. To Schmidt, Apple’s taking rivals to court sends a strong signal, that of the lack of innovation and jealousy:
The big news in the past year has been the explosion of Google Android handsets and this means our competitors are responding. Because they are not responding with innovation, they’re responding with lawsuits. We have not done anything wrong and these lawsuits are just inspired by our success.
Schmidt re-iterated sales of 135 million Android phones since 2008 and highlighted more than 550,000 daily activations that exclude tablets and non-smartphone devices, which is up from 400,000 a day in May. He said Google will support HTC’s legal battle against Apple’s copyright accusations, but wouldn’t elaborate.
Whether or not Apple’s legal pressure stems from jealousy is up for debate, of course. 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. Apple’s victory over HTC may set what RBC Capital Markets analyst Mike Abramsky painted as a high royalty precedent for Android devices that could further shrink the already slim margins on Android phones.
As if that wasn’t enough, 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 and General Dynamics Itronix. Microsoft is also understood to have targeted Samsung, seeking royalties in excess of hundreds of millions of dollars annually. The Cupertino, California-headquartered gadget giant quoted Steve Jobs in a statement announcing the HTC lawsuit March last year:
Then Google CEO Eric Schmidt shares the stage with Steve Jobs at the January 2007 iPhone unveiling. The times of happiness would abruptly come to an end amid Android whispers, culminating with Apple announcing Schmidt’s resignation from its board August 3, 2009.
Shares of the Taiwanese Android phone maker HTC fell 6.5 percent this morning following the ruling by the International Trade Commission (ITC) that the company violated two patents held by Apple. The company’s shares have been pretty much free-falling throughout last week. The agency’s commissioners still have to support the ruling, but investors are already panicking over fears that the ruling will favor the California-based gadget maker. This, in turn, would open doors to ITC’s ban on imports of HTC’s phones into the United States. In response to the crisis, HTC announced a share buy back program worth up to $760 million in an attempt to stabilize its share price and restore investor confidence, reportsFinancial Times:
The attempt to prop up HTC’s share price appeared to have little effect as the stock fell below HTC’s minimum purchase price of T$900 to close down 3.9 per cent at T$871. The sell-off highlights investor fears that the legal battle could have wider implications for the competitive balance between Apple and Google Android-based phonemakers like HTC, Samsung and Motorola.
HTC is thought to have recently acquired S3 Graphics for $300 million in a bid to secure a stronger ground in its legal dealings with Apple, which filed its patent infringement complaint against the Taiwanese company back in March 2010. Apple accused HTC of violating up to twenty patents related to the iPhone’s hardware, software and its user interface. ITC recently ruled in favor of S3 Graphics, deciding the iPhone maker infringed on two patents held by S3 Graphics. They also acquired a portfolio of 82 patents from US-based ADC Communications for $75 million and signed an Android protection pact with Microsoft. HTC is expected to use all of this in the hope of relieving some of the pressure from Apple’s legal sharks. If ITC decides to ban import of HTC phones into the US and the company does not reach a timely settlement with Apple, its stock price could free-fall further.
TechCrunch is reporting that Google is hiring numerous amounts of lawyers in order to acquire more patents. Currently Google only owns 701 patents, a very small number for such a large company. In contrast Microsoft was awarded 3,121 patents just last year. Google will continue to get slammed with lawsuits if they don’t acquire more patents.
On its Job page, Google is listing six open positions involving patents . TechCrunch points one out:
For example, the strategic patent licensing and acquisitions manager evaluates and values potential patent acquisition and licensing opportunities, and negotiates these deals (a.k.a. finds more patents for Google).
Perhaps Google will go after Richard “Chip” Lutton Junior, the chief patent counsel that just left Apple yesterday.
In case you didn’t notice, tech headlines recently are all about patents. Be it the ongoing case of patent troll Lodsys which is now suing The New York Times Company and five other firms that previously sued Lodsys (bringing the number of defendants to 33) or Microsoft going after Samsung and signing Android patent protection pacts with five more vendors or the Apple led-consortium winning a crucial $4.5 billion bid for Nortel’s patent trove – you name it, the blogosphere is all over it.
HTC is now joining the craze with the news that they will snap up graphics vendor S3 Graphics from Via Technologies. The transaction valued at $300 million is about – you guessed right – patents. A total of 235 patents and pending applications will change hands once regulators approve the deal (VIA’s and HTC’s boards of directors already have). The patent agreement should help HTC protect themselves from future patent litigation from rivals. There’s also this:
On July 1, a U.S. International Trade Commission judge ruled that Apple infringed on some of the claims contained in two S3 Graphics patents. Judge E. James Gildea found that Apple infringed on U.S. Patent No. 6,658,146 directed to systems and methods for compressing images and U.S. Patent No. 6,683,978 directed to image data formats, both of which belong to S3 Graphics.
HTC has been trying to escape Apple’s lawsuits since March of last year, when Apple took the Taiwanese handset maker to court over an alleged breach of twenty patents pertaining to the iPhone hardware, software and user interface. With this acquisition, HTC may be out of trouble as both firms now have what the others want – intellectual property – even with HTC bringing a lot less to the negotiating table…
A report from Citi analyst Walter Pritchard made headlines this morning with claims that HTC agreed to paying five bucks per every Android handset sold. The basis for this is Microsoft’s patent settlement with the Taiwanese handset maker over intellectual property infringement, the analyst has found out. The fact that HTC makes Windows Phones obviously didn’t help dodge that patent hit.
Microsoft’s boss Steve Ballmer argued last October that Android wasn’t free just because it’s open-sourced. Some watchers are calling the Android platform a patent bomb waiting to explode. HTC is also being sued by Apple over alleged breach of iPhone patents and Oracle is suing Google over use of Java in Android. Pritchard warns other Android vendors can expect to pay royalties to Microsoft between $7.50 to $12.50 per device, which is troubling and here’s why.
You may have heard about the latest scandal in the world of Apple involving an unknown company called Lodsys which came out of nowhere, applying legal pressure to the makers of popular iPhone apps that use in-app billing in an effort to extort royalties. Patent troll Lodsys (even though they beg to differ) claims Apple, Microsoft and Google signed licensing agreements with them related to in-app purchasing that don’t, however, include third-party apps. Acting on the Electronic Frontier Foundation’s public letter calling out Apple for not stepping up for its developers, the iPhone maker publicly ensured developers that they are covered under its license.
Figuring out the extortionate strategy may have not worked out as expected, Lodsys is now apparently targeting Android developers with patent infringement claims. MacRumorsspotted a Google Groups discussion thread which reveals that at least one Android developer may have found itself in Lodsys’ cross-hair. Here’s how that developer described his legal woes with the patent troll firm:
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