Posts Tagged ‘apple’

Share via email

With a mighty crescendo, the jury has returned a verdict in the Apple v. Samsung suit.  And the verdict is… guilty!  Well, at least lots and lots of infringement, and even more damages.  At first, it was $1,051,855,000 in damages.  However, that later became $1,049,343,540.  But hey, what’s $2.5 million between, well, enemies?  However, this difference in damages might belie a more troubling and uncomfortable possibility about this verdict, that it was based on something other than the law.

An excellent summary of the goings-on after the verdict is available at Groklaw.  To start, there is the small matter of the $2.5 million.  It turns out that the jury made a slight mistake in awarding Apple damages for some Samsung device that the jury decided did not infringe Apple’s patents.  It appears the connection between infringement and the awarding of damages wasn’t fully formed in the minds of the jurors.

This is where the sausage is made

As unsettling as that is, it’s merely the first in a chain of apparent missteps by the jury.  As reported by Groklaw, the jury foreman stated “the jurors had reached a decision without needing the [jury] instructions.”  Given the complexities of patent law, it is unfathomable that a lay jury can arrive at a logical, legally maintainable decision without reading the damn instructions.  On top of this, there’s the fact that the jury returned their verdict in three days.  Three days to carefully analyze each allegedly infringement of each device against each claim.  Given the amounts in controversy, in addition to simply performing their sworn duties, three days seems grossly inadequate for every count to be given its due consideration.

Comments from another juror seems to support the contention that the jury failed in its task.  A CNET interview with juror Manuel Ilagan quotes Ilagan as saying “After we debated that first patent — what was prior art –because we had a hard time believing there was no prior art.  In fact we skipped that one, so we could go on faster. It was bogging us down.”  When jurors skip analyzing prior art to determine the validity of a claim, they unequivocally shirk their responsibilities.  The audacity to simply omit this analysis because it is difficult to perform makes me irate and does little to bolster the concept of jurors as suitable triers of fact in difficult patent cases.

In my last post I discussed a variety of theories that are commonly used in   calculating damages.  I have to apologize, for I omitted a crucial one, where the jury makes it up.  If not making it up, the jury in this case certainly used something other than actual economic damages suffered by Apple in awarding damages.  Again quoting the jury foreman, “we wanted to make sure the message we sent was not just a slap on the wrist. We wanted to make sure it was sufficiently high to be painful, but not unreasonable.”  Never mind that damages awarded by the jury are not punitive, but compensatory.  Of course, had the jurors bothered to read the instructions, this is something they likely would have been informed of.

 

A growing chorus of experts and journalists anticipate some degree of reversal of this verdict, and I am in agreement.  The multitude of errors committed by this jury, and the serious consequences, monetary and otherwise, are too severe to go ignored an unaddressed.  Let’s hope the courts can sort out this mess.

 

Share via email

Don’t we all?

In a letter to the Senate Judiciary Committee, Google General Counsel Kent Walker  has argued that proprietary non-standardized technologies that become ubiquitous due to their popularity with consumers should be considered de facto standards:

While collaborative [Standards Setting Organizations (SSOs)] play an important part in the overall standard setting system, and are particularly prominent in industries such as telecommunications, they are not the only source of standards. Indeed, many of the same interoperability benefits that the FTC and others have touted in the SSO context also occur when one firm publishes information about an otherwise proprietary standard and other firms then independently decide (whether by choice or of necessity) to make complementary investments to support that standard in their products. … Because proprietary or de facto standards can have just as important effects on consumer welfare, the Committee’s concern regarding the abuse of SEPs should encompass them as well.

Is that all the time, or only when it suits Google’s interests? Popularity and ubiquity are not (yet) enough to limit the scope of patent protection.

Google is forwarding the argument that some inventions are so good that they should be considered “standards” subject to restrictions. In a letter of his own, Apple General Counsel Bruce Sewell responded. “That a proprietary technology becomes quite popular does not transform it into a ‘standard’ subject to the same legal constraints as true standards.”

Sewell wrote:

The capabilities of an iPhone are categorically different from a conventional phone, and result from Apple’s ability to bring its traditional innovation in computing to the mobile market. Using an iPhone to take photos, manage a home-finance spreadsheet, play video games, or run countless other applications has nothing to do with standardized protocols. Apple spent billions in research and development to create the iPhone, and third party software developers have spent billions more to develop applications that run on it. The price of an iPhone reflects the value of these nonstandardized technologies — as well as the value of the aesthetic design of the iPhone, which also reflects immense study and development by Apple, and which is entirely unrelated to standards.

The distinction may be in the origin of the popularity. Was it from being adopted industry-wide, or was it because one developer invented a really good technology, forcing everyone else to get on board or fall behind. Here, Apple took a cell phone, made an iPhone, and now we have the patent wars.

Apple’s argument mirrors the rationale for our patent system itself: an inventor gets property rights to an idea for a limited time, in exchange for disclosing the idea. Others can embrace and extend the invention, but only when the patent expires.

Cook argues:

No one should be able to get an injunction off a standards-essential patent because the owner of the patent has the responsibility to license it on a fair, reasonable and non-discriminatory manner . . . [a]nd so when somebody comes to you and tries to get some obscene level of money from you for this, they are in essence telling you they are not going to license it because they want to go try to get an injunction and use the court system to do that. In my view, they use it in a way that it wasn’t intended. … And you can always argue about the payment, and there has to be a forum for resolving those disputes. The problem in this industry is if you add up what everybody says the standards-essential patents are worth, no one else could be in the phone business. Competition would be locked out. And so it’s kind of gotten crazy — this is one issue. There is some of this that is maddening. It’s a waste; it’s a time-suck. However, does it stop innovation? It’s not going to stop us from innovating — no — but it’s overhead. It’s overhead that I wish didn’t exist.

For more, read here.

Share via email

Slide to unlock, circa 800 A.D.

In a patent world in which obviousness seems very much in the eye of the beholder, “a High Court Judge in the UK has ruled that HTC did not infringe on a number if Apple’s patents.” The judge determined that Apple’s slide-to-unlock feature was “obvious” since a similar function was available on an earlier Swedish handset. Two other Apple patents were ruled invalid, and a third was found not to apply to HTC. HTC said: “HTC is pleased with the ruling, which provides further confirmation that Apple’s claims against HTC are without merit. We remain disappointed that Apple continues to favour competition in the courtroom over competition in the marketplace.”  HTC makes a good point. Apple does beat HTC in the marketplace, so why bother trying to win in the Courtroom too? Because they have $100 bazillion dollars and why the heck not? Yes, probably.  Apple declined to comment on the specifics of the case, because when you lose you either say that or say, “we are disappointed in the decision and are weighing our options.” Apple did re-issue an earlier statement, saying: ‘We think competition is healthy, but competitors should create their own original technology, not steal ours.’” Nany-nany boo-boo! This after a similar victory for HTC in a different venue, when Apple’s request for an injunction on some HTC devices was rejected in the U.S.

It’s easy to say that slide to unlock is  obvious to anyone who has ever used a bolt, but the first claim states:

1. A method of unlocking a hand-held electronic device, the device including a touch-sensitive display, the method comprising:

detecting a contact with the touch-sensitive display at a first predefined location corresponding to an unlock image; continuously moving the unlock image on the touch-sensitive display in accordance with movement of the contact while continuous contact with the touch screen is maintained, wherein the unlock image is a graphical, interactive user-interface object with which a user interacts in order to unlock the device; and unlocking the hand-held electronic device if the moving the unlock image on the touch-sensitive display results in movement of the unlock image from the first predefined location to a predefined unlock region on the touch-sensitive display.

Obviously (there’s that word again) a bolt lock wouldn’t infringe that claim or anticipate that claim.

You slide the graphical representation of something along a software-defined and graphically-displayed route and the device unlocks once the graphical object contacts the defined unlock region. Now, the bolt is an example of a physical item for which the slide-unlock, as it is currently implemented, is an exact digital representation.

Here, it wasn’t novel (some Swedish phone beat them to it), it was obvious (because I say so), and just because it’s “on a smartphone” doesn’t change that, at least in this one case.

Share via email

By: Mark R. Malek

Ever since I started practicing patent law, one of the things that has continuously driven me nuts is when I hear people calling a patent a “monopoly” on a particular area of technology.  I’ll get into more detail below, but in essence, that is just not true.  This is one of the biggest mischaracterizations of patent law for a number of reasons.

First and foremost, the patent right does not provide someone with the right to make something, use something or sell something.  Close, but not exactly right.  All you have to do is ask yourself the following:  do I need a patent to produce something?  The answer here is a resounding NO.  The patent right provides the patent owner with the right to exclude others from making, using, selling, or offering to sell a product, process, etc. that is covered by the claims of the patent.  This is a very small distinction, but I always go back to the example that my professor in law school provided (many of you know this professor – Gene Quinn, founder of IPWatchdog.com and the partner in charge of our DC Office.  Incidentally, Gene Quinn posted a great article about this a couple of years ago). The example was “you can get a patent on a nuclear bomb – do you think that the government will ever let you make it?  Of course not.”

So here is that the patent right only gives you the right to exclude others from using your invention, it does not give you the right to make the invention.  I do understand some of the other arguments that support the fact that patents can be “monopoly like.”  In its purest form, a patent can act as a barrier to entry into the market.  In other words, the patent holder can bar others from entering the market, but to be fair, that barrier only encompasses the very specific space to which the claims of the patent are directed.  Due to the inventive nature of society, a great deal of people and companies are continuously improving technology.  That means that known technology is getting better every day.

Let’s take the cell phone, for example.  How far have we come in 15 or 20 years?  Do you remember the bag phones, or the phones that were like gigantic bricks (bringing back memories of Miami Vice, right?).  Now, due to the rapid advances in technology, I am able to achieve so much with my iPhone.  I could, if I have a ton of patience, even post this article from my iPhone.  Those of you who know me, however, know that such patience waived bye-bye to me years ago!

The point here is that it is not as though one company advanced the cell phone.  It is not as though there is only one cell phone manufacturer.  Why is that?  It is because the patent system does not really allow for a patent as broad as a cell phone to issue.  Claims are limited to very specific portions or programs or components of a cell phone.  Therefore, there is no “monopoly” on a cell phone, but there certainly is a monopoly like feeling to an Apple iPhone because Apple has several patents that protect the various features of the iPhone.  The answer to this is any phone that operates on the Android platform.

I guess what I am trying to say is that I do not believe that the term “monopoly” is accurate to use when discussing inventions that are protected by patent rights.  I really would welcome an open discussion on this.  I know that there are intellectual property haters out there that thing that patents and copyrights only serve to restrict the markets, and I will post more on that in future articles.  In the mean time, please feel free to share your opinion on this topic.

Share via email

The latest major acquisition of patents by a big computer software corporation has been agreed to between AOL and Microsoft.  The sticker price this time: $1.06 billion.  The purchase includes more than 800 patents, putting the per-patent price north of $1 million.  On the heels of purchases by Google, buying Motorola Mobility and its attending intellectual property, and the Nortel portfolio sale, major corporations continue building their IP war chests.  More than this, they are doing so largely by raiding the portfolios of other large companies that are either distressed or worse.  If it has its way, Kodak will be the next big seller.  The question becomes: to what end?

In the battle between tech giants, the power afforded by a patent potentially allows the owner to prevent the manufacture, import, or sale of products that infringe the invention described in the patent.  Scale this power by the thousands of patents owned by companies like Google and Apple, and the opportunity to hobble a competitor is manifest.  Hence, tech companies are tripping over themselves to amass greater and greater numbers of patents in the areas of electronics, software, and, as in the case between AOL and Microsoft, advertising.  Given the numbers of patents owned by the major players, and the complexity of a given product, it’s a safe working assumption to say that every major product released by the likes of Apple, Goole, Microsoft and others of that ilk infringe on at least one patent owned by a competitor.

So what is keeping patent owners at bay, permitting infringing products to enter the market?  Essentially, mutually-assured destruction.  Given an increasing number of patents owned by a given competitor, the probability of that competitor owning a product that one or more of your products infringes approaches 1.  If one tries to assert patent rights, that will in turn spur a counter-assertion.  This gives rise to a stand-off; although there is potentially much to be gained by excluding a competitor’s product from the marketplace, the consequences of that action could substantially outweigh the benefits.

 

Continuing the Cold War allusion, patent acquisitions like those mentioned above are tantamount to an arms race between nations.  Nobody wants to be left behind, so everyone commits more and more resources to protection.  Consortiums are even arising, akin to treaty organizations, to the chagrin of those that are excluded.  In sum, barring major changes in the philosophy in the business practices driving the tech industry, the one with the biggest patent portfolio looks to be king of the hill.


Subscribe

Login



MONDAY, MAY 20, 2013

Bad Behavior has blocked 10930 access attempts in the last 7 days.