EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

11.14.12

Speculations That HTC Pays Apple Not Verified, Said to be Bogus, and May Only be Anti-Android FUD

Posted in FUD, GNU/Linux, Google, Microsoft, Patents at 8:28 pm by Dr. Roy Schestowitz

Trolled!

Steve BallmerSummary: HTC says there is no financial impact to the settlement, but Microsoft boosters say that HTC pays Apple for Android; Techrights investigates what people are saying and where the claims come from

As noted in the previous post, lawyers say that HTC pays Apple per phone sold following the secret settlement and they claim to know the cost. This speculation about Apple getting a patent tax (echoed by John Koetsier in this case) has Groklaw say: “Does that sound fair to you? Sound like the US patent system is working as it should?

“Folks who argue that the US patent system works beautifully for the US economy need to think about the future, then. How beautifully will the system work when other countries make it impossible for US companies to bring new products to market in the US? Think that could never happen? Look at the Apple-Microsoft-Nokia attack on Android. Now put non-US companies in attack mode and against a US product.”

Other sources seem to suggest Apple has retreated. TechDirt writes “HTC And Apple Settle Patent Dispute; Perhaps Tim Cook Realizes Patent Fights Are A Waste” and formal reports say nothing about a tax. Why? Because they do fact-checking. One Android site says:

While the specific details of the agreement are under wraps, press is being told by Jeff Grdon, representative for HTC, that HTC “does not expect this license agreement to have any adverse material impact on the financials of the company” – read as: HTC won’t break the bank in the settlement.

Right.

So no losses, correct?

Here is more speculation:

What is Google’s real incentive in seeding the Android mobile OS in the global market? Is it to make money from the sale of Android-based handsets and tablets? Certainly, that’s part of Google’s strategy. After all, through its Motorola Mobility acquisition, Google is a player in the smartphone and tablet markets.

Recently, there have been several reports about how Apple’s recent settlement with Taiwan’s HTC could mean that Apple and Microsoft make more from Android going forward than Google does. Apple and HTC have a cross-licensing deal that some are saying could mean Apple collects $6 to $8 per Android phone sold. The truth is, though, that Google’s real benefit from the spread of Android comes from bringing new users into its lucrative search/ad ecosystem.

Where do these numbers come from? These have not been verified. Given that Apple feels blowback (calls to boycott Apple and generally a great disdain or forced apologies that embarrass the company’s culture), we might as well suspect a non-victory for Apple. One expert says:

“This settlement and their statement on Friday don’t quite jive,” says David Martin, Founder and Chief Executive of M·CAM. “Apple is starting to look at the market consequence of their litigation strategy and realizing there may be some blow back from it.”

The Microsoft booster says that Apple gets paid (among other outrageous things), but maybe this is just propaganda. Groklaw writes in response: “Inventor of the touch screen, my foot. And by the way, isn’t Apple the company claiming that if it has to pay a more or less equivalent sum for FRAND patents owned by Android vendors, it will put them out of business? And next comes Nokia, the rumors continue, trying to get HTC to pay them too, and they already pay to Microsoft. They call this royalty stacking [Mark Lemley's paper explaining it, PDF], and it’s a fast way to kill off the competition, if you gang up on them this way. Meanwhile, both Apple and Microsoft are whining to regulators about royalty burdens they are threatened with if they can’t devalue FRAND patents. If there are 250,000 patents that read on just one smartphone, where in the world is the profit going to come from? You can’t make a phone in that environment. Instead of getting rid of software patents and/or devaluing all patents or even coming up with a reduced rate for victims of royalty stacking demands, Apple and Microsoft would like the devalue the ones they don’t own, but Android vendors own, while leaving their patents at full value. That way Android can’t compete in the marketplace and people will stop selling it. If by any chance you are thinking that *Apple* would never pull such a dirty trick, I direct you to their response to the UK court’s order to post a notice that Samsung didn’t copy Apple’s design patent, which the court characterized as showing a “lack of integrity”. Where are the antitrust regulators now?”

“It’s all secretive, but Microsoft and Apple try to deceive the press and the regulators.”But wait, does this booster (Eric Savitz) just spread his usual FUD? These are not verified claims, it could be just a scare tactic. Here is a more accurate report.

“Microsoft and Google’s Motorola Mobility unit are set to square off on Tuesday at a trial with strategic implications for the smartphone patent wars and which could reveal financial information the two companies usually keep under wraps,” says the Indian press. It’s all secretive, but Microsoft and Apple try to deceive the press and the regulators.

We do not even know how much HTC pays Microsoft, if anything, The claims of five dollars are unverified. Here is a new example of spin in patent settlements:

In Planning Software Patent Settlement, Both Sides Claim Victory

In the wake of a settlement of a patent infringement lawsuit involving two major financial planning software products, both sides are proclaiming victory.

“We are extraordinarily happy,” said David Loeper, CEO of Wealthcare Capital Management, the plaintiff in the case. “We’re not just happy; we had a great celebration when the agreement was settled. I can understand why the other side would be too, given the liability if we had proceeded with litigation.”

This is what the Apple-HTC settlement might have been like. It is possible that HTC pays nobody for Android. It’s speculation. When Microsoft signed a patent deal with Novell, for example, Novell was actually bribed, not charged. It was all for FUD. They create fear, uncertainty, and doubt.

Update: hours after I had drafted this post I found this post titled: “Here is why HTC doesn’t pay a cent to Apple”

Remember those statements from yesterday that HTC has to pay Apple around $6-$8 for each and every Android smartphone they sell? Well it turns out that this was complete bogus.

As I suspected when I first researched this topic, this is all just FUD and the claim is most likely bunk. Sites like Groklaw got suckered by the FUD, which had simply spread all around the Web, sometimes by all the usual suspects.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

2 Comments

  1. Michael said,

    November 14, 2012 at 9:27 pm

    Gravatar

    This speculation about Apple getting a patent tax (echoed by John Koetsier in this case) has Grok law say: “Does that sound fair to you? Sound like the US patent system is working as it should?

    If HTC has been illegally using Apple’s property it makes a lot of sense for HTC to pay Apple for past and future use. Of course.

    formal reports say nothing about a tax

    Of course not. You are using the term "tax" completely incorrectly. Why would others use your incorrect term?

    Right.
    So no losses, correct?

    We do not know that. It could be he is comparing what *is* with would would be likely if this went to court. We do not know. Note, the fact we do not know means we do not know that HTC is paying Apple anything – I am not suggesting they are!

    Apple and HTC have a cross-licensing deal that some are saying could mean Apple collects $6 to $8 per Android phone sold. The truth is, though, that Google’s real benefit from the spread of Android comes from bringing new users into its lucrative search/ad ecosystem.

    Right. Google’s main business model is to collect data on users and monetize it. Scary, eh? Yet you try to prop them up as the good guys. Neither Apple nor Google nor Samsung nor Microsoft are blameless entities… they all have mixes of good and evil. Your bias, though, makes you focus on the evils of MS and Apple and pretend Samsung and Google are the good guys. Completely absurd and unsupportable. This is shown by your claiming Eric Savitz is a "Microsoft booster". More immature silliness from you. Your claim is shown to be false just looking at his articles on MS: http://seekingalpha.com/author/eric-savitz/articles/symbol/msft Notice how some are good and some are bad. No *objective* sign of "boosting". You see anyone who does not buy into your paranoid BS as boosting those you see as being evil.
     

  2. NotZed said,

    November 14, 2012 at 11:15 pm

    Gravatar

    It’s still all just speculation – just how litigators like it when they settle. Maybe the ability to keep settlements secret should be looked at since in general it doesn’t seem to serve much public interest.

    “no material impact” doesn’t (necessarily) mean zero, and even a zero-money-changed-hands cross-licensing deal isn’t a zero opportunity cost.

What Else is New


  1. Links 31/10/2014: Rubin Leaves Google, Neelie Kroes Ends EU Career

    Links for the day



  2. The EPO Is More Corrupt Under Battistelli Than Under Alison Brimelow: Part VIII

    After Brimelow, with all her flaws and her scandals, an even worse President is installed who then abolishes oversight and seemingly brings his old friends to the EPO, creating a sort of subculture that is impenetrable to outsiders



  3. Claiming That Microsoft 'Loves' Linux While Windows Update Bricks Devices With Linux

    The sheer absurdity of claims that Microsoft -- which not only attacks those who distribute Linux and GNU but also blackmails them, takes them to court, or bricks their products without any liability -- 'loves' Linux



  4. Protectionist Reign: Corporations in Complete Control of Everything With Domination Over Patent Law

    How multinational corporations, joined by the corporate press that they are funding, promote a corporations- but not people-friendly patent policy in north America



  5. Links 30/10/2014: GNOME 3.15.1, Red Hat Software Collections 1.2

    Links for the day



  6. Links 29/10/2014: Ubuntu Touch Tablet, Puppy Linux 6.0

    Links for the day



  7. Links 28/10/2014: SUSE Linux Enterprise 12, Canonical OpenStack Distro

    Links for the day



  8. Links 28/10/2014: PiFxOS, The Document Foundation in OSBA

    Links for the day



  9. Microsoft is Bricking Devices With Linux (Yet Again!), So a Microsoft Booster Spins/Paints Linux Devices as 'Fakes'

    Microsoft delivers rogue drivers through Windows Update and they brick Arduino microcontrollers



  10. How Bill Gates Continues to Pass Wealth From the Public to His Own Bank Account

    Having put a universal tax on many things (not just computers) and evaded tax using the classic 'charity' trick, Gates is now buying the media, the schools, politicians etc. and earns as much as 10 billion dollars per year while the public is taught that Gates is a giver, not a hoarder of the worst kind



  11. Links 27/10/2014: Lenovo Unbundling, Linux 3.18 RC2

    Links for the day



  12. IRC Proceedings: September 14th, 2014 – October 25th, 2014

    Many IRC logs



  13. Links 25/10/2014: KDE Mockups, Update on GNOME Outreach Program for Women

    Links for the day



  14. After Infecting Unity -- Successfully -- Microsoft's Partner Xamarin Wants to Infect Unreal Engine With .NET

    Xamarin continues to spread dependence on Microsoft to more gaming frameworks, not just platforms such as GNU/Linux, Android, and even permanent-state devices



  15. Taking Microsoft Windows Off the Grid for Damage to Businesses, the Internet, and Banking Systems

    Microsoft's insecure-by-design software is causing massive damages ([cref 27802 possibly trillions] of [cref 13992 dollars in damages to date]) and yet the corporate press does not ask the right questions, let alone suggest a ban on Microsoft software



  16. City of Berlin Does Not Abandon Free Software, It's Only Tax Authorities

    A Softpedia report that says the City of Berlin is moving to Microsoft Office is flawed and may be based on a poor translation



  17. Nadella a Liar in Chief at Microsoft, Pretending That His Anti-Competitive Practices Are Unfortunately Imposed on Microsoft

    The nastiness of Microsoft knows no bounds as even its assault on GNU/Linux and dirty tricks against Free software adoption are characterised as the fault of 'pirates'



  18. Reuters Writes About the Demise of Software Patents, But Focuses on 'Trolls' and Quotes Lawyers

    How the corporate media chooses to cover the invalidity of many software patents and the effect of that



  19. Links 24/10/2014: Microsoft Tax Axed in Italy, Google's Linux (ChromeOS/Android) Leader Promoted

    Links for the day



  20. Links 24/10/2014: GNU/Linux History, Fedora Delay

    Links for the day



  21. Links 23/10/2014: New *buntu, Benchmarks

    Links for the day



  22. Links 22/10/2014: Chromebooks Surge, NSA Android Endorsement

    Links for the day



  23. Links 21/10/2014: Debian Fork Debate, New GNU IceCat

    Links for the day



  24. Criminal Microsoft is Censoring the Web and Breaks Laws to Do So; the Web Should Censor (Remove) Microsoft

    Microsoft is still breaking the Internet using completely bogus takedown requests (an abuse of DMCA) and why Microsoft Windows, which contains weaponised back doors (shared with the NSA), should be banned from the Internet, not just from the Web



  25. Microsoft 'Loving' GNU/Linux and Other Corporate Media Fiction

    Microsoft has bullied or cleverly bribed enough technology-centric media sites to have them characterise Microsoft as a friend of Free/Open Source software (FOSS) that also "loves Linux"



  26. India May be Taking Bill Gates to Court for Misusing His So-called 'Charity' to Conduct Clinical Trials Without Consent on Behalf of Companies He Invests in

    Bill Gates may finally be pulled into the courtroom again, having been identified for large-scale abuses that he commits in the name of profit (not "charity")



  27. The Problems With Legal Workarounds, Patent Scope, and Expansion of Patent Trolls to the East

    Patent trolls are in the news again and it's rather important, albeit for various different reasons, more relevant than the ones covered here in the past



  28. Links 20/10/2014: Cloudera and Red Hat, Debian 7.7, and Vivid Vervet

    Links for the day



  29. Links 20/10/2014: 10 Years Since First Ubuntu Release

    Links for the day



  30. How Patent Lawyers Analyze Alice v. CLS Bank

    Breaking down a patent lawyer's analysis of a Supreme Court's decision that seemingly invalidated hundreds of thousands of software patents


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts