Saturday, August 13, 2011

What If Android Lost the Patent War?

Android patent death

While you're at a store innocently trying to decide between a Samsung Galaxy S and an iPhone 4, there's a war taking place among the makers of those fantastic little computers that fit into the palm of your hand, one that could ultimately affect the choices available to you and the cost.

Smartphones, the hottest and highest-growth segment in consumer electronics, have become the latest playground in the patent arms race that accompanies every flourishing technology industry. The patent system is certainly complex—the Financial Times estimates that as many as 250,000 patents are at stake in a smartphone. Some patents are arguably ridiculous, too; for example, Apple has a patent for being able to call numbers cited in emails. All of the chaos and preceived absurdity of patent law is on display in the recent litgation over Google Android. And it's just getting started.

In recent months, Apple's lawyers have been aggressively suing Android manufacturers HTC and Samsung for various technologies, from the "look and feel" to how it connects to broadband networks. It's clear that Apple has its patent strategy aimed squarely at the number one rival to its iOS mobile operating system, Android, which is now embedded in 40 percent of all U.S. smartphones compared to Apple's 26.6 percent, according to June figures from comScore.

Veterans like Microsoft, Nokia, and Apple, each have tens of thousands of patents each, while Google's portfolio is reportedly on the low end—"under 1,000."

"Google's always been late to the game with patents. I think it's because there's a tone at Google that software shouldn't be patentable," said a third-party developer who declined to be named. "Apple's been the opposite—they're relentless in protecting whatever intellectual property they generate."

Publicly, Google seems to take an ambivalent view towards patents as being mutually exclusive with innovation. Just last month Google chairman Eric Schmidt, vowing to defend HTC, slammed those who bring up patent lawsuits: "We have seen an explosion of Android devices entering the market and, because of our successes, competitors are responding with lawsuits as they cannot respond through innovations," he said. "I'm not too worried about this."

But now that Apple is making life difficult for any popular Android manufacturer, there's a rallying cry over the need for Google to step up and protect its manufacturers. In that same interview, when asked whether or not Google would provide financial support to HTC in case it loses, Schmidt simply said, "We will make sure they don't lose, then." Apple doesn't always win. In June, it lost an epic two-year case against Nokia, and now has to pay billions of dollars for past and ongoing licensing fees to the Finnish manufacturer.

The patent war has polarized those in the tech world, with some admiring Apple's aggressive patent-building strategy, and others defending Google's relative indifference engaging in the controversial patent system. But beyond that, what will happen to Android if its manufacturers lose their patent lawsuits?

If Apple wins both HTC and Samsung battles, one of three things could happen:

1. HTC and Samsung would be ordered to pay ongoing royalties to Apple for every smartphone it makes.

2. The courts could issue an injunction banning infringing Samsung and HTC devices.

3. Apple could choose not to license its intellectual property to Android manufacturers.


Source:http://www.pcmag.com/article2/0,2817,2390536,00.asp?kc=PCRSS05039TX1K0000762


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