Close ad

"I'm willing to start a thermonuclear war because of Android," Steve Jobs said a few years ago. Apple's conflict with Google, and by extension Android, was in its infancy and it didn't take long for the first of a series of lawsuits to emerge. In the most famous one, a court ordered Samsung to pay Apple more than a billion dollars. Meanwhile, Tim Cook let it be known that he does not want to continue the raging war, but at the moment it seems rather the opposite. The Californian company has teamed up with Microsoft, Sony, BlackBerry et al. and through Rockstar is suing Google and a number of Android phone manufacturers.

It all started with the collapse of a large company. Canadian telecommunications firm Nortel went bankrupt in 2009 and was forced to sell its most valuable holdings - more than 6 technology patents. Their content included strategically important innovations in the field of 000G networks, VoIP communications, semiconductor design and web search engines. Therefore, a number of technology corporations tried to acquire the package of patents that Nortel auctioned.

However, some of them seem to have somewhat underestimated the situation. How else to explain that Google "joked" mathematically with the amount of bids several times in the auction? From $1 (Bruno's constant) to $902 (Meissel-Mertens constant) to $160 billion (π). Google gradually reached the figure of 540 billion dollars, which, however, was not enough to obtain patents.

They were overtaken by a tenth of a billion by an organization called the Rockstar Consortium. This is a community of large companies such as Apple, Microsoft, Sony, BlackBerry or Ericsson, which has a single goal - to be a counterweight to the block around the Android platform. The members of the consortium were aware of the importance of the given patents, so they did not hesitate to use considerable funds. As a result, it can be much more than the mentioned 4,5 billion dollars.

Google, on the other hand, somewhat underestimated the seriousness of the situation and offered too little money for the patents, even though finances certainly could not be a problem. Immediately, the advertising giant realized its fatal mistake and began to confuse. However, hesitating about Nortel ended up costing him a lot of money. Larry Page decided to respond to Rockstar's strategic advantage by buying Motorola Mobility for $12,5 billion. Then on the company's blog he said: "Companies like Microsoft and Apple team up to launch patent attacks on Android." The acquisition of Motorola was supposed to protect Google against these "unfair" attacks.

It seems like a rather desperate move, but it was probably necessary (unless a better alternative could be found). Rockstar Consortium filed a lawsuit against Asustek, HTC, Huawei, LG Electronics, Pantech, Samsung, ZTE and Google on Halloween. It will be dealt with by the court of the Eastern District of Texas, which has long been favorable to plaintiffs in patent matters.

At the same time, Rockstar will use a total of six patents related to Internet search directly against Google. The oldest of them dates back to 1997 and describes "an advertising machine that serves an advertisement to a user searching for certain information within a data network." This is a major problem for Google - at least 95% of its revenue comes from advertising. And secondly, Google was founded in 1998.

Some representatives of the media and professional public see members of the Rockstar consortium as aggressive enemies of the free market, who will not miss a single opportunity to attack Android. "Apple and Microsoft should be ashamed of themselves, signing up for a completely shameless attack by a patent troll - disgusting," he tweets David Heinemeier Hansson (creator of Ruby on Rails). "When Apple and Microsoft failed to succeed in the market, they are trying to fight the competition in court," writes indiscriminately VentureBeat. "It's basically trolling on a corporate level," summarizes Ars Technica article.

Two questions suffice to answer this criticism.

First, what would Google have done with the newly acquired arsenal of patents if it had not underestimated the key auction? It is hard to believe that he would not try to use it to disadvantage his opponents. This is what he has been trying to do for a long time sees lawsuits against Apple around the world. In Germany, for example, Motorola (and therefore Google) succeeded in preventing Apple customers from using some of the features of the iCloud service for 18 months. Although this ban no longer applies, legal disputes with Apple and Microsoft continue.

Second, how can we selectively say that patents are bad in the hands of Apple? How right points out John Gruber, it certainly cannot be said that Google has behaved in any way exemplary as the other party to the patent dispute. In September, he even had to in connection with the lawsuit against Microsoft pay a fine of 14,5 million dollars for the abuse of the so-called FRAND patents. These are technologies so fundamental and necessary for market development that technology companies must license them fairly to others. Google refused this and demanded an unrealistic fee of 2,25% of sales (approx. 4 billion dollars per year) for licensing Xbox patents. It is therefore impossible to operate under the assumption that Google is not aggressive and is always in the right.

Opponents of technology patents may argue that the practices used today in the fight against competition are not correct and should be abandoned. They may seek to end lengthy litigation. But they must do so on a flat basis, not selectively. Big companies will always go as far as the market will allow them - be it Apple, Microsoft or Google. If the public agrees that change is needed, it must be systemic.

Source: Ars Technica, VentureBeatDaring Fireball
.