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The Real Reason Apple Is Suing Samsung

doperative writes with this quote from a speculative piece at Business Insider about Apple's real motive behind its recent lawsuit against Samsung's Galaxy devices: "Android is free. In some cases, it's even cheaper than free, with Google sharing some revenue from Google searches on Android phones with partners. This is hugely disruptive to both Microsoft and Apple's business models; Microsoft because they make money on software licenses, and Apple on hardware. And this disruptive approach is winning: Android is surging past iOS in marketshare. A lawsuit from a big company, even if doomed, still takes a lot of time, energy and money to fight off. So Samsung or someone else might settle, accepting to pay some form of license. If that happens, Apple can go around to the other manufacturers asking for the same license and have a much stronger claim. And now OEMs have to factor that cost into the decision to choose Android. And all of a sudden, Android has a price." Samsung has fired back with a lawsuit of its own.

15 of 514 comments (clear)

  1. Yes, and? by Microlith · · Score: 5, Insightful

    It's the same reason Microsoft got "licensing agreements" with all the other handset vendors and is suing Motorola right now. They put a gun to their head and said "release WP7 handsets or we'll sue you for patent infringement." All the others complied, and Motorola is being sued for patent infringement. This is why Microsoft loves software patents and doesn't oppose them outright.

    Yes, both Apple and Microsoft are anti-choice and act in anti-competitive manners. This is nothing new, nor will anyone step in to stop it.

    1. Re:Yes, and? by node+3 · · Score: 4, Insightful

      Apple is doing so much better than its competition, this article is delusional. Apple has always maintained the look and feel of their products as something unique to them. They created it, why should other companies be allowed to copy them? They can come up with their own unique designs. This lawsuit fits perfectly with this idea. No need to project some sort of desperation scenario.

      Also, the article is factually incorrect when it states Android is surging past iOS in market share (iOS maintains a significant lead over Android, and always has, although on Slashdot ignorance is bliss, so I fully expect some replies from people ignorantly claiming this isn't true), and Apple's market share is increasing, and their revenues are increasing, and their profits are increasing. They are the most financially successful cell phone maker on the planet. They do not fear Google's business model. Why would they when their own is working so well? Not just working well, but working significantly better than that of anyone else?

      This article is just the same old uninformed nonsense you expect from people who don't understand that the reason people make money is to buy things. Just because something is free (or "less than free") does not mean people will want it, nor does it mean that people won't pay more for something else. Store shelves wouldn't contain name brands if people always chose the cheapest option.

      iOS far outsells Android, yet clearly Apple's business model is doomed? Brilliant!

  2. the legal system as a weapon by Anonymous Coward · · Score: 4, Insightful

    > A lawsuit from a big company, even if doomed, still takes a lot of time, energy and money to fight off.

    This should be no surprise; it's exactly what the RIAA does to individuals. You don't have to be RIGHT, you only have to tie up enough time, money, energy, and effort that it isn't worth the cost to the recipient.

    So if you sue anyone making rectangular tablet computers with ions, you might get a revenue stream, but if not, you have still cost them a lot of trouble to round up related document, emails, put a case together, and so on. And you have cast FUD on anyone else who dares to not use your closed ecosystem - smaller players may not be able to defend themselves adequately.

    A smart tactic, since the system allows it, but a highly sleazy one nonetheless.

    1. Re:the legal system as a weapon by Moryath · · Score: 5, Insightful

      Welcome to how the legal system works - justice is not a part of it any more.

      The sad part is that this kind of shit pervades even the "criminal justice" side.

      Traffic tickets? Compare the cost of "just paying" (or in many states, "taking defensive driving") with the cost of defending yourself - lost hours of work on the days you have to go to court, lost time on paperwork or else lawyer fees to subpoena all the records you'll need, and oh yeah, the possibility that the case judge will be one of those corrupt motherfuckers who insist "the police are always right" because guess what, the judge's salary is paid out of ticket fines too.

      I had one once where the police officer was obviously just using "pull someone over" as an excuse to hit on the new female recruit. Sat there and watched as he got everything about my car's info wrong on the ticket except for license plate - make, model, even the number of fucking DOORS - because he was too busy trying to "explain how we do this" while sneaking his hand onto her ass.

      Didn't matter, of course. The Prosecutors are corrupt, the Judges are corrupt, the whole system is fucking corrupt and the fines and fees are set "just low enough" that most people will "just pay it" because it works out cheaper to do so.

      Oh, and no, it's not just on the low side either. The American "justice" system has gotten the "plea bargain" down to a science - you can "plead guilty" to something you know you didn't do, get "lenience" from the court, OR they can tack on dozens of fucking extraneous charges and run you into the ground so that even if you do manage to convince the jury you're innocent on most of it, chances are they'll get one of the charges through, and you'll be fucking bankrupted by the cost of defending yourself anyways.

  3. Nice conspiracy theory, but... by Penguinisto · · Score: 5, Insightful

    ...bit of a problem or four in it, though:

    * Apple is selling pretty much every iPhone they can make.
    * the iPhone (in various versions) is the single top-selling phone model, bar none. While overall, yes Android *phones* are selling equal-to-better, no single Android model is anywhere close to matching the iPhone. Therefore, why would Apple bother to chase just Samsung, and not LG, HTC, or a larger phone maker?
    * Suing over design won't achieve the premise in TFA... phone makers will just make it look/feel different to work around the stated patent(s). If Apple was truly chasing the goal of crippling Android as a whole, they'd be better off going after the *core* of Android (like, well, Oracle is doing. Speaking of which...)
    * Oracle is already working towards something that would achieve the same thing, but to provide Oracle an income stream - so why would Apple feel it had to do something similar, when Oracle is already doing it for them, and has been running that lawsuit long before Apple fired a shot across Samsung's bow?

    --
    Quo usque tandem abutere, Nimbus, patientia nostra?
    1. Re:Nice conspiracy theory, but... by Anonymous Coward · · Score: 5, Insightful

      That's like saying the MAC is the top selling model of Personal Computers... Just because there are so many other models in the PC camp. It comes down to trying to slice the numbers to benefit what point you are trying to make.

      No matter how try to phrase it won't change the fact that there are more phones with Android being sold with them than iOS, and that is likely to not change in the future. Sorry if that hurts your Apple Fanboism.

  4. The real real reason by gnasher719 · · Score: 4, Insightful

    Apple is suing one manufacturer of Android phones who happens to make phones that look pretty much exactly the same as iPhones. It should be pretty obvious to anyone that Apple doesn't like competitors making phones that look like iPhones. If we were to believe the conspiracy theories of "Business Insider", then we would have to believe that Apple doesn't mind their designs being copied. And that I find quite unbelievable. The simplest and therefore most likely explanation for this lawsuit is that Apple doesn't like their designs being copied.

  5. Money off hardware? by kwerle · · Score: 4, Insightful

    Saying that Apple makes its money of hardware is disingenuous. Nobody (you 3 don't count) buys macs to run linux or windows - though both run fine. And there are plenty of folks who will tell you that apple phones and tablets are nothing special, hardware-wise.

    Apple sells systems. Well integrated, easy to use systems.

    I happen to like 'em because they also run *nix. (I don't care that you 3 don't like the flavor)

  6. Re:it is why by Anthony+Mouse · · Score: 4, Insightful

    1. They have to be aggressive because if they don't, someone else will be aggressive to them. It's how it works now.

    Is it? You can accumulate a patent arsenal without being the first one to sue. It seems to me that all filing the lawsuit does is serve as an admission to your prospective customers that you can't win on the merits. Winners win, losers litigate.

  7. factual errors by phantomfive · · Score: 5, Insightful

    First, there are so many lawsuits among mobile companies that a single extra one isn't going to have a chilling effect. All of these companies have enough cash that the cost of fighting a lawsuit alone will not hurt them (a big judgement might be a different story).

    Secondly, MIcrosoft licensing costs aren't very much for Windows Phone 7. Estimates of licensing costs are between $5 and $15 on a phone that, with a data plan, ultimately costs thousands of dollars. Or, in the case of Nokia, Microsoft is paying Nokia to use it. $5 is still a cost, but it's not the reason people don't like WP7.

    Then the article gets plain idiotic. It says Apple makes money on hardware, not on their OS. But this is true of every single Android phone as well.

    The next factual error is a surprising one, but still serious. Look at the numbers of iOS vs Android devices. There are a lot more people using iOS than Android (note the figures include tablets). Surprising, but if you're going to write a tech journal you should be on top of this kind of thing.

    Finally there is no reason to question why Apple is suing. It's about money. Just like every single other lawsuit in the mobile space. They all think they can get some extra money by suing, so they do.

    --
    "First they came for the slanderers and i said nothing."
  8. Did the author do any research? by UnknowingFool · · Score: 4, Insightful

    Here's the problem: it's not clear that anyone has ever won a "look and feel" lawsuit. (The legal term is "trade dress.")

    Did the author did any research into this statement because Apple has won a "trade dress" lawsuit against eMachines back in 1999.

    Nor should they. Fast-following and imitating is a big part of what makes free markets work. It helps competition and helps bring innovations to consumers faster.

    There is a difference in copying functionality and copying design. I think if Honda or Toyota were to make bubbly sedans that look very much like the old VW Beetle, VW would have a problem with it even though their current Beetle is no longer as bubbly.

    It's the same reason why Microsoft is suing makers of Android phones: to give Android a price.

    If that were the case, MS would have sued all Android makers but they didn't. They only went after former customers who abandoned them for Android. If I were to guess the purpose of MS, it would be to keep a place in the market. MS competes directly with Android as makers can pick Android over WP7 when making a phone. MS doesn't want to be left out of any maker's lineups. Apple does not compete directly with Android because Apple sells hardware and the software.

    Additionally, Android phones often compete with each other and WP7 on pricing. Most likely, Apple doesn't really care about what Android costs as they are making tons of money anyways. What is the term around here: Android phones are a race to the bottom?

    Also if that was the reasoning behind the lawsuit, Apple would have sued more than Samsung for this reason. Why didn't Apple sue other makers over their Android phones for trade dress? Also Apple would have sued Samsung for more than the Galaxy line of products as Samsung sells other Android products. The question then is why Galaxy.

    If you look at the Galaxy line, it is the line that looks most like Apple products. Whereas other makers and other Samsung models have different bevels, tapers, corners, etc, the Samsung i9000 specifically looks a lot like the iPhone when both are powered off. Take a look the comparison between a Samsung Galaxy and a Samsung Wave and a HTC D2. Now compare a Galaxy vs iPhone. When powered on, the UI is very similar. Again other makers and models used different UI themes, icons, layouts, etc. The Galaxy is very similar to the iPhone.

    Will Apple win and how long will this lawsuit go on? I don't know if Apple will win, but at the very least, Samsung's next Android phone will likely not look anything like the iPhone 4 which is probably what Apple wants.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  9. Re:it is why by scotts13 · · Score: 5, Insightful

    No, they don't. That was settled a long time ago when Apple was ruled against in their suit against MS over look and feel. If you look at the previous summary it's very clear that Apple is trying to do an end run around the normal prohibition on suits over look and feel.

    Actually, that wasn't why they lost the case. You can certainly protect your look and feel, companies do it every day. Apple lost that particular case, against that particular company, because Microsoft had a license allowing them to use some elements of the GUI. Granted, Apple had foolishly given away much more in that contract than they intended to; if they hadn't, computing would be very different today. And BTW, don't bring up Xerox - they were paid handsomely for their contribution, all nice and legal.

  10. Re:aplle is the shit by Daniel+Phillips · · Score: 4, Insightful

    Because I'm not a Unix kernel hacker who can write his own kernel. I'm just a student, whose interest in technology doesn't extend to rewriting Unix kernels, as that's too much learning and way out of may chosen career path.

    I am a kernel hacker but not all my computers are running custom kernels, far from it. That is because for almost all my machines a standard kernel is perfectly adequate. However, this has not always been the case. From time to time I have had hardware issues that required kernel customization in some way, typically backport of a driver or a driver compiled from vendor source. And of course there are kernels that I compile and install for experimental and development purposes. The fact that I am able to do this is very important. For one thing it allows me to update devices that would otherwise become obsolete and useless. And the fact that other people are able to do it is even more important because I benefit from the work they are able to do.

    --
    Have you got your LWN subscription yet?
  11. Re:Step 2 by binary+paladin · · Score: 5, Insightful

    Desperate?

    Am I the only one that caught the fact that Apple is just had YET ANOTHER record quarter?

    The fact that Android—which is available on more networks and being built in more price ranges by more manufacturers—is outpacing iOS isn't some kind of surprise. You don't need to own a majority of the market to do well. They were doing well before the iPhone came out without owning a majority of any market they were in.

    Are they playing rough, yes. Desperate? http://www.reuters.com/article/2011/04/21/nokia-apple-idUSLDE73K12P20110421

    No, not really. The "real" reason Apple is suing is because they are HISTORICALLY litigious. There's no sales conspiracy needed. It's not some final desperate act. It's standard operating procedure for Apple and has been for years.

  12. What color is the sky on your planet? by jamrock · · Score: 4, Insightful

    Apple IOS devices are being outsold better than two to one by android.

    Umm...no. The reality is almost the exact opposite of your claim. Devices powered by iOS --iPhone, iPod touch, and iPad-- are in fact outselling Android devices by 59% (37.9 million to 23.8 million). The summary also makes the same claim, that "Android is surging past iOS in marketshare", but it's as wrong as you are. Android-powered smartphones are outselling iOS-powered smartphones, but that's collectively; no single manufacturer even comes close to Apple. The iPhone is far and away the best-selling smartphone on the market.

    Android proponents (I won't be disrespectful and call them "fanboys") and lazy journalists love to point out the fact that Android is outselling iPhone, but that's disingenuous; they're comparing a platform to a single device. In both platform-to-platform and device-to-device comparisons, Apple is still wa-aay ahead of the competition. At the end of 2010, Android had the largest smartphone market share at 33.3%, Nokia was second with 31%, and Apple third with 16.2% of the global market. Apple's smartphone market share translates to 4.2% of the total market for all mobile phones, and yet Apple is reaping 51% of the total profits of the entire mobile industry. And they're doing it with variations of a single device. That fact certainly gives the lie to the claims that the iPhone is "dead in the water". If these jaw-dropping numbers demonstrate that Apple is "getting desperate", as you claim, then I'm sure their competitors would love a big helping of the desperation they're imbibing.

    Apple haters may have their reasons for disliking Apple, but they need to make a reasoned case if they hope to be taken seriously. Blithe disregard for the facts, and trumpeting bizarre assertions as fact, despite all evidence to the contrary, certainly doesn't help their cause. It only lumps them into the same category of fruit loop as the "birthers".