Samsung to seek details of Apple-HTC deal: Filing

SAN FRANCISCO: When Apple Inc and HTC Corp last week ended their worldwide legal battles with a 10-year patent licensing agreement, they declined to answer a critical question: whether all of Apple’s patents were covered by the deal.

It’s an enormously important issue for the broader smartphone patent wars. If all the Apple patents are included -including the “user experience” patents that the company has previously insisted it would not license – it could undermine the iPhone makers efforts to permanently ban the sale of products that copy its technology.

Samsung Electronics Co Ltd, which could face such a sales ban following a crushing jury verdict against it in August, now plans to ask a US judge to force Apple to turn over a copy of the HTC agreement, according to a court filing on Friday.

Representatives for Apple and Samsung could not immediately be reached for comment.

Judges are reluctant to block the sale of products if the dispute can be resolved via a licensing agreement. To secure an injunction against Samsung, Apple must show the copying of its technology caused irreparable harm and that money, by itself, is an inadequate remedy.

Ron Laurie, managing director of Inflexion Point Strategy and a veteran IP lawyer, said he found it very unlikely that HTC would agree to a settlement that did not include all the patents.

If the deal did in fact include everything, Laurie and other legal experts said that would represent a very clear signal that Apple under CEO Tim Cook was taking a much different approach to patent issues than his predecessor, Steve Jobs.

Apple first sued HTC in March 2010, and has been litigating for more than two years against handset manufacturers who use Google’s Android operating system.

Apple co-founder Jobs promised to go “thermonuclear” on Android, and that threat has manifested in Apple’s repeated bids for court-imposed bans on the sale of its rivals’ phones.

Cook, on the other hand, has said he prefers to settle rather than litigate, if the terms are reasonable. But prior to this month, Apple showed little willingness to license its patents to an Android maker.

Holy patents
In August, a Northern California jury handed Apple a $1.05 billion verdict, finding that Samsung’s phones violated a series of Apple’s software and design patents.

Apple quickly asked US District Judge Lucy Koh to impose a permanent sales ban on those Samsung phones, and a hearing is scheduled for next month in San Jose, California.

In a surprise announcement on Saturday, however, Apple and HTC announced a license agreement covering “current and future patents” at both companies. Specific terms are unknown, though analysts have speculated that HTC will pay Apple somewhere between $5 and $10 per phone.

During the Samsung trial, Apple IP chief Boris Teksler said the company is generally willing to license many of its patents – except for those that cover what he called Apple’s “unique user experience” like touchscreen functionality and design.

However, Teksler acknowledged that Apple has, on a few occasions, licensed those holy patents – most notably to Microsoft, which signed an anti-cloning agreement as part of the deal.

In opposing Apple’s injunction request last month, Samsung said Apple’s willingness to license at all shows money should be sufficient compensation, court documents show.

Apple has already licensed at least one of the prized patents in the Samsung case to both Nokia and IBM . That fact was confidential until late last year, when the court mistakenly released a ruling with details that should have been hidden from public view.

In a court filing last week, Apple argued that its Nokia, IBM and Microsoft deals shouldn’t stand in the way of an injunction. Microsoft’s license only covers Apple patents filed before 2002, and IBM signed several years before the iPhone launched, according to Apple.

“IBM’s agreement is a cross license with a party that does not market smartphones,” Apple wrote.

Apple’s seeming shift away from Jobs-style war, and toward licensing, may also reflect a realization that injunctions have become harder to obtain for a variety of reasons.

Colleen Chien, a professor at Santa Clara Law in Silicon Valley, said an appellate ruling last month that tossed Apple’s pretrial injunction against the Samsung Nexus phone raised the legal standard for everyone.

“The ability of technology companies to get injunctions on big products based on small inventions, unless the inventions drive consumer’s demand, has been whittled away significantly,” Chien said.

The case in US District Court, Northern District of California is Apple Inc v. Samsung Electronics Co Ltd et al, 11-1846.

iPhone 5 a success, but is Apple losing its sheen?

NEW YORK: Apple, the world’s biggest and perhaps most admired company, seems to have lost some of its luster.
Despite the hugely successful launch of the iPhone 5 and iPad mini tablet, shares in the California tech giant have slid some 20 percent from all-time highs, and analysts are questioning whether Apple remains the leader in “innovation.”

A flubbed mobile maps programme and a major shakeup in key management have also tarnished the image of the firm that had seemed nearly invincible just months earlier.

A more competitive landscape for mobile phones and tablets, including the surge in devices using the Google Android operating system, have also changed the outlook for Apple.

Last month, Apple parted ways with Scott Forstall, the executive in charge of mobile software, following embarrassments over its glitch-ridden maps programme, as well as John Browett, who headed Apple’s real-world shops.

Some analysts say the company lacks the vision and commitment to excellence after the death last year of its admired chief Steve Jobs.

Apple stock hit a record high above $700 in September, but have since slumped more than 20 percent to $547.06 on Friday.

“Investors are confused and have lost faith in Apple management,” said Trip Chowdhry, analyst at Global Equities Research.

“Apple today is not as customer centric as it used to be, and the rate of innovation is declining when the rate of innovation of competitors has dramatically risen.”

Others argue that it is too soon to say Apple has peaked.

Charles Golvin at Forrester Research said that in a season filled with product launches from Amazon, Motorola, Nokia and others, Apple has been able “to exert a superior gravitational pull on its customers and partners than its competitors.”

And Forrester’s Sarah Rotman Epps said Apple “is entering the 2012 holiday season with its strongest product lineup ever, with wider retail distribution than it has ever had.

“Apple is already leading every game it plays. But these products will maintain Apple’s momentum,” she added.

Yet Apple has lost market share both in the tablet market, which it created with the iPad, and in smartphones.

Research firm IDC said Apple held a 50.4 percent of the tablet market in the third quarter from more than 65 percent in the second quarter, as rivals like Amazon and Google gained in the growing market.

IDC’s Tom Mainelli said many consumers interested in buying a tablet “sat out the third quarter” waiting for the new iPad mini.

“We expect Apple to have a very good quarter. However, we believe the mini’s relatively high $329 starting price leaves plenty of room for Android vendors to build upon the success they achieved in the third quarter,” Mainelli said.

In smartphones, it was a similar story with Android grabbing 75 percent of the market and the Samsung Galaxy S III getting the crown as the world’s top selling smartphone, based on surveys.

IDC said Apple’s smartphone market share slipped to 14.9 percent in the third quarter from 16.9 percent the prior period.

Even though the figures came as Apple launched the iPhone 5 — which combined with the iPhone 4S, outsold the Samsung flagship — the news was sobering for the Cupertino, California firm.

Many analysts remain bullish on Apple and say the recent stock slump is nothing to fret over.

“The sell-off in Apple’s stock in recent weeks has spooked investors but this correction is similar to the three others experienced over the past 13 months, all of which proved to be attractive buying opportunities,” said Brian White at Topeka Capital Markets.

Gregori Volokhine of the investment firm Meeschaert said one problem for investors is that Apple, because of its huge success in recent years, has become the largest holding for nearly every investment fund in the US and elsewhere.

That means any move is likely to be amplified as investors follow the trend.

“Having too much of one stock means portfolio managers will sell on declines to reduce exposure,” Volokhine said. “It’s a vicious circle.”