Apple Demands $40 Per Samsung Phone For 5 Software Patents
An anonymous reader writes "Apple and Samsung couldn't agree on a patent cross-license even though their CEOs met recently. What could be the reason (or one of the reasons) is that Apple is asking for obscenely high patent royalties. At the March 31 trial an Apple-hired expert will present to a California jury (already the third jury trial in this dispute) a damages claim of $40 per device (phone or tablet) for just a handful of software patents. The patents are related to, but don't cover all aspects and elements of, functionalities like slide-to-unlock, autocorrect, data synchronization, unified search and the famous tap-on-phone-number-to-dial feature. Google says there are 250,000 patentable inventions in a smartphone. On average, Apple wants $8 per patent per device. That would add a patent licensing bill of $2 million to each gadget. So Apple and Samsung will be back to court again later this month."
Most of this thing is just common sense technological progress. If Apple didn't come up with it, someone else inevitably would have. There wasn't any spark of genius required.
Apple are acting like total cunts.
Whether they're in the right or wrong, under current patent law, they're still acting like total cunts.
No comment on how that compares to their customers.
You're not allowed to patent an obvious advancement.
But patent law is offensively fucked up. Basically, it's a war of money. Both sides line up patent lawyers (one of a very few formally recognized specializations for attorneys in the U.S.) and burn money until someone gives up. This case will almost certainly wind up before the Supreme Court eventually - unless Samsung folds and pays to make apple go away. Fortunately, Samsung is sufficiently profitable that it can saturate the process with more money than required and write it off as a margin cost for continuing to compete in the smartphone market.
Apple's patents are offensively bad. There *is* enough there to require a jury verdict to nullify them rather than a summary ruling by the Court (preferably one where the foreman doesn't lie about having a personal stake in proving that software patents are nearly always valid - like the last trial between these two) but in a sane system of patents there would be no question that "slide to unlock" is a variation of long established design concepts - i.e. a latch.
Well, actually, there's another option, which Samsung opted for - infringe the patents and then drag the issue out in court and wage a PR war of misinformation. Most companies, however, either agree to license the patents or, if they can't reach an agreeable rate with the patent holder, design around the patents instead
Bias much?
I guess the bias the other way is roughtly that Samsung rightfully determined that the patents were obvious non-innovations that should never have been issued a patent in the first place and infringed on them knowing that the courts would see the patents fall once someone actually challenged them.
The truth is somewhere in the middle I expect.
Apple's patents that they are enforcing aren't FRAND. They are under no obligation to license them to anyone.
And if they never should have been issued patents for them in the first place? What then? Apparently to the courts we must go.
Now, feel free to mod me down since I'm clearly an Apple fanboy despite speaking the truth and I've dared to impugn the honour of Samsung...
Oh the hell with that, I doubt Samsung has much honour to impugn but... swipe to unlock et al shouldn't even be patents.
I finished a book a while ago that I think really illustrates why software patents are objectionable, and what's wrong with the patent system as a whole, today.
The book is "The Last Lone Inventor" by Evan I. Schwartz. It describes the work of Philo T. Farnsworth to create television. During the time that Philo was working on television, many scientists employed by the radio industry were also working to develop usable video transmission technology, with inferior designs. Most of their work involved mechanical television cameras that used spinning wheels. Philo's invention was all electronic. It scanned, transmitted, and displayed a line at a time to create a two dimensional image. This remained the fundamental technology in displays at least until LCD and plasma screens replaced CRT.
Now, while many other patent related problems were well demonstrated by the book, the one most clearly related to software patents pertains to the intent of the patent system. Patents are not, as they are often regarded today, a recognition that an inventor owns his ideas. Ideas are not property, and have never been recognized as such. Patents are a recognition that some inventions rely on information that isn't obvious. Some inventions require the inventors to test and improve their inventions for years before they can be brought to market. Underlying the patent system is the belief that this work will not be done, that inventors will not fund years of experimentation and development, if they don't believe that they'll be able to sell that invention to recover the costs of its development. In a free market, competitors will be able to offer the same invention at a lower cost than its inventor, because the competitors did not have to invest in the development of the invention. Patents attempt to create an incentive to invent by ensuring that inventors who do invest in development are given a limited monopoly on their invention.
However, patents aren't free. It is not enough for the inventor to merely offer his invention to the market to receive patent protection on it. An inventor is also required to completely disclose how the invention works. After the patent period expires, the public must be able to continue using the invention independent of the inventor.
That is the fundamental purpose of the patent system: to benefit the public by providing it with the knowledge required to reproduce the invention. It is the public's benefit, not the inventors, that is the goal of the patent system. The inventor's benefit is simply the means to achieve that goal. The Constitution of the United States reflects this:
To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries
Philo's work was exactly the progress of science that the patent system was intended to promote. His invention required tremendous investment to create. His idea was sound, but a great deal of experimentation was required to create a working device. Other highly skilled scientists were not able to create a working device on their own, or created working devices of significantly lesser quality. The exact properties of the materials and components used in the camera and television set were not previously known, and were discovered through Philo T. Farnsworth's experimentation and development.
The invention of television was worthy of patent protection.
Software development isn't like the invention of television in ANY way.
Software development does involve testing cycles, but otherwise almost never involves the kind of experimentation involved in the invention of television, because the exact properties of computer operations are previously known. Computers perform a limited number of operations, exactly according to a specification, and exactly the same every time. Because the behavior of the system is known in advance, the uncertainty inherent in real world material inventions does not exist in software development.
FRAND patents are not of little value, and are not normally licensed for little value. They are normally part of cross-licensing agreements between companies
That doesn't make any sense at all, patents licensed under FRAND terms need to be non-discriminatory as that's what the ND stands for. Typically that means that if you sign an agreement and pay $0.20/unit, anybody can make something with a HDMI port or something like that. Cross licensing agreements are the opposite of that, you get to use my patents if I get to use yours. If you don't have any interesting patents, no agreement for you so they're discriminatory and because the patents involved are unique the cost is not uniform either. In short, you don't have any clue what you're talking about and apparently neither do the mods.
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Law is a crappy field. Most lawyers earn half of what a senior engineer does and spend most of their time in divorce court. Plus you come out of school loaded with debt.
You can make good money in Big Law. However few last more than 3-5 years in that area. The weed out rate is incredible.
It's like going into a career like acting. The few at the top are wealthy. The rest wait tables.
And the crappiest part is that you are perpetually around people who are pissed. Husbands mad at their wives, companies mad at other companies for getting sued, people mad at each other respectively for making the other guy look stupid. What a life...
Perhaps not how it should work, but it is how it does work. Unless/until you are actually accused of infringing and hit up for money, you can't get the issue before the court at all.
You are correct, but the per unit fee is much higher than $0.20/unit in the case of the 3G/4G patents that are in dispute here. Most companies do not pay those fees, they cross-license instead. Since Apple is unwilling to cross-license they have to pay the per unit fee like everyone else. It's not discrimination, it's the standard terms offered to everyone and just because Apple doesn't like the deal doesn't make them the victim.
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