Tuesday, March 2, 2010

Apple Sues Phone Maker HTC Over Patents


Apple said on Tuesday that it had filed lawsuits against HTC, the Taiwan-based phone maker, accusing it of infringing on 20 Apple patents tied to the iPhone.

The suits, filed with the office of the United States International Trade Commission and the United States District Court in Delaware, say HTC violated patents covering the phone’s user interface, internal architecture and hardware.

HTC makes the Nexus One, a phone designed and sold by Google that runs Google’s Android operating system. Google was not mentioned in the suit, but the lawsuits are likely to worsen the already strained relations between Apple and Google.

Steven P. Jobs, Apple’s chief executive, said in a news release: “We can sit by and watch competitors steal our patented inventions, or we can do something about it. We’ve decided to do something about it.” Mr. Jobs added: “We think competition is healthy, but competitors should create their own original technology, not steal ours.”

HTC responded to the suit stating that, “HTC values patent rights and their enforcement but is also committed to defending its own technology innovations.” The company also said: “HTC only learned of Apple’s actions this morning via media reports, and therefore we have not yet had the opportunity to investigate the filings. Until we have had this opportunity, we are unable to comment on the validity of the claims being made against HTC.”

The legal documents from the suit, posted by the technology blog Gizmodo, cite patent infringement across numerous areas, including touch screens, power conservation and the orientation of graphics on a mobile phone.

According to the documents, Apple is asking the court to place an injunction against HTC that would bar them from “making, using, selling and/or offering” phones that impinge on the patents in questions, within the United States.

Cellphone makers have been playing catchup to the iPhone since it was introduced in June 2007, creating phones with similar touch-screen interfaces.

Apple has said that it has filed over 200 patents related to the iPhone.

13 comments:

  1. I'm surprised we don't see more patent lawsuits. It seems like a lot of new touch screen phones have similar or the same traits as an iPhone. By filing a lawsuit, Apple is trying to maintain to mini monopoly it has on touch screen phones. The patents were a barrier to entry of the market for touch screen phones and the iPhone is the touch screen phone that many consumers would say there is no substitute for. This satisfies both requirements for a monopoly. Apple just wants to keep all their profits theirs' and have nobody else cutting into these profits. A

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  2. It seems right now that any touch screen phone would somehow violate the patent of the iPhone. Of course iPhone is using a patent to create a barrier into the touch phone market. It seems it would be really hard to make a new touch phone that would be totally different given the technology at hand. Like Nick said, Apple wants to keep a monopoly on their iphone design and have no substitutes available to take away their profits. (A)

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  3. I definitely feel like this is an example of monopolization, I mean 20 patents for one device?!?!?! The sad thing about this is that the iPhone doesn't really have anything in it that is an original invention, but rather its the most seamless combination of several of the newest technologies around, and by making patents Apple is excluding other brands (such as HTC) from making a competitive phone.

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  4. This so directly relates to what we've talked about in class. I think Apple is at the point where it is now big enough, well known enough, and popular enough to sue for their designs. It's amazing how hard they worked to protect their individuality, but I agree with Rich... it seems like a monopoly, is either being created or defend, or both in this situation. (AT)

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  5. Over 200 patents on just the iPhone! That seems like a recipe for a monopoly--having control over the necessary and valuable resources. With their patents, they have this. Beecause they were innovated with tehir technology, and were therefore rewarded with legitimate patents, it is only right for them to defend these. And it's a smart move economically as well. What business wouldn't want to have a monopoly?
    A,T

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  6. Yeah I agree with Nick and the fact that we don't see more of these patent lawsuits with bigger companies. I understand Apple's interests in defending their own inovations, however I also almost feel like this is just splitting hairs. I mean, unless there are very clear cut descriptions in the patents that HTC knowingly violated, I don't really think they should be punished too heavily. I'm sure they're just trying to compete like everyone else and come up with the next best thing. A

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  7. I agree with Nick and Alex. And like Professor Mckinney said setting patents are supposed to help get the companies investment back, but when you are coming down to interior architecture design its hard to see how they can file a lawsuit for a similiar design on the inside of the phone. I think this may somewhat slow the production and sales of HTC's new phone but overall they are just competing and came up with a product that is competing with the iphone so yea there are going to be some similarities.

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  8. Smart move by Apple. Going along with what we talked about today, it looks like they're securing their "barriers to entry".
    They want to make sure that the knockoff brands are so far knocked off that they just won't cut it.

    T

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  9. I have always been puzzled about why Apple doesnt have any real competition out there. Apple is a monopoly. It places patents on their technological innovations.So far, this move to ward off competitors is working very well.

    Apple also keeps on creating new products that will keep them ahead of competitors at all times. A,T

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  10. Apple company is a monopoly. Such as the touch screen technology looks like one of those famous patents they have. And I wondered is there other companies somehow to follow the trend because they knew the touch screen cell phone will make a big profits. Due to the limitation of what service you may have to use if you want iPhone, they found their places in the market. E

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  11. There is no question that Apple is not in a competitive market, especially when its comes to their iPhone product. I mean, they are truly a monopoly. No one can compete with them, seen by HTC situation. Apple has the newest and greatest technology that goes into their iPhones, and other companies such as HTC cannot keep up. Nothing stacks up to the iPhone, so every company making phones is trying to do everything to keep up. In this case, HTC used Apple's top performance products that went into building the iPhone, to build their own phone. I mean, I understand why they did this, but in the end it is wrong and it should not be done. But you can say the market would be more competitive if other companies, maybe not began making their own iPhones, but had access to similar-in-quality touch screen and graphic products and so on that Apple has, would give other companies a chance against the iPhone. It would only be fair. (A)

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  12. I feel Apple is justified in doing this. I feel that after being ripped off from Microsoft for the computer way back when, they have the right to preserve their innovation. It would be a monopoly, but Apple's innovation is the reason why their stock price is so high, and why they make money in the recession. As we discussed in class today with other companies, patents are necessary to in order to give companies the reason to innovate, and without it, the consumer would suffer. Therefore, Apple has the right to protect its rights.

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  13. I think this is very interesting, because the patent laws could give the Iphone a mini-monopoly. But the thing is- is I feel this is fair. Look at what Gates did with his Windows software program, Jobs is doing the same thing with the Iphone. Apple is just starting to get very big, and soon I predict can become bigger than the Windows processing system.

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