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. Alice Case Beats Microsoft Patent Troll, USPTO Director Michelle Lee Wants Reform

    Latest developments surrounding software patents and patent trolls in the United States



  2. Links 7/7/2015: Lenovo ThinkPad With GNU/Linux, More Containers Hype

    Links for the day



  3. There is No 'New Microsoft': Under Nadella, Patent Extortion Against Linux/Android Carries on

    Kyocera is again being targeted by Microsoft, using patent aggression, with a secret settlement being reached whose negative impact on Android remains to be seen



  4. Patent Propaganda, Glamourisation, and Erosion of Citizens' Rights in the Process

    An overview of recent coverage about patents, demonstrative of inherent bias in the world of patent practitioners and the journalists whom they misinform



  5. Corporate Media Should Stop Grooming Black Duck by Calling it 'Open Source' and Repeating Its Lies

    Black Duck uses gullible (or easy to manipulate) journalists to spread its marketing talking points, which grossly overstate risks of using Free software



  6. Links 6/7/2015: Linux 4.2-rc1, YotaPhone Picks Sailfish OS

    Links for the day



  7. Microsoft Windows Unsafe at Any Speed, by Design

    More timely reminders that Windows is simply not designed to be secure, irrespective of version, status of patching, etc.



  8. After Moonlight Dies and Even Microsoft Abandons Silverlight, the Abusive Monopolist Keeps Pushing for Other Microsoft Lock-in, Injecting OOXML Traps Into Free Software (Moodle)

    Despite a long history of Microsoft formats being proven guarantee of digital obsolescence, Moodle allows itself to become Microsoft prey and a Trojan horse for OOXML in classrooms (for children)



  9. Links 4/7/2015: Mostly (Geo)Political Catchup

    Links for the day



  10. Links 3/7/2015: KDE Applications 15.04.3, Ubuntu-Flavored Compute Stick

    Links for the day



  11. Patent Lawyers and Their Firms, Still Desperate to Protect the Status Quo, Manipulate the Media

    Patent lawyers are besieged by gradual tightening of patent scope and recklessly fight back (e.g. by saturating the media) to secure their revenue sources, derived from (and at the expense of) actual scientists and true market producers



  12. Amid Controversy, Political Scrutiny and Increased Media Pressure Željko Topić and Benoît Battistelli Allegedly Cancel Today's Trip to Zagreb (Croatia) Where Topić Faces Many Criminal Charges

    The Croatian press comments on the recent declaration from the Council of Europe and Topić's not-so-sterling status in his home country, where he is wanted for alleged crimes



  13. Microsoft Gradually Embraces, Extends, Extinguishes Linux Foundation as a Foundation of GNU/Linux

    By liaising with (or hijacking) existing members of the Linux Foundation, as well as by paying the Linux Foundation, Microsoft turns the Linux Foundation into somewhat of a Windows advocacy group



  14. Microsoft India Still Lobbies and Lies About Free Software in Order to Knock Down Policy That Favours Free Software

    Microsoft continues to bully Indian politicians who merely 'dare' to prefer software that India can modify, maintain, extend, audit, etc.



  15. Patent Lawyers and Corporate Media Nervous About New Patents Barrier/Reality (Less Patents on Software and Business Methods)

    The rich and the powerful, as well as their lawyers (whose job is to protect their money and power by means of government-enforced monopoly), carry on whining after the Alice case, in which many abstract patents were essentially ruled -- by extension -- invalid



  16. Translation of Pierre-Yves Le Borgn' Speech Against EPO Management and New Parliamentarian Interventions

    More political fire targeting the EPO's management, adding up to over 100 parliamentarians by now



  17. Links 2/7/2015: KDE Plasma 5.3.2, antiX 15

    Links for the day



  18. Links 1/7/2015: OpenDaylight Lithium, OpenMandriva Lx 2014.2

    Links for the day



  19. Munich Press, Münchner Merkur, Slams the Munich-based EPO

    Pressure on Benoît Battistelli to leave (or be fired) grows as the cronies whom he filled his office with have become a huge public embarrassment to the decades-old European Patent Office



  20. The Shameless Campaign to Paint/Portray Free Software as Inherently Insecure, Using Brands, Logos, and Excessive, Selective Press Coverage

    Some more FUD from firms such as Sonatype, which hope to make money by making people scared of Free/libre software



  21. National Insecurity and Blackmail, Courtesy of Microsoft

    British members of parliament (MPs) outsourced their communication to the number one PRISM company and they are paying the price for it; The US Navy's systems continue to be unbelievably insecure (Windows XP), despite access to the world's biggest nuclear arsenal



  22. Microsoft Keeps Shrinking

    As the era of shrink-wrapped software comes to an end so does Microsoft, whose effort to become a 'cloud' company with online operations has been miserable at best



  23. They 'R' Coming: More Microsoft Money for the Linux Foundation

    The problem with having Microsoft in a Linux Foundation initiative, the R Consortium



  24. Speculations About the EPO's Possible Role in DDOS Attacks

    Readers' views on who might be behind the attacks on this site amid confirmation that it's on the 'targets' list of the EPO



  25. Links 30/6/2015: Linux Mint 17.2, OpenMandriva

    Links for the day



  26. Techrights Confirmed as a Target of EPO Surveillance, With Help From Control Risks Group (CRG)

    Unveiling the cloak of secrecy from long-term surveillance by the European Patent Office (EPO) and a London-based mercenary it hired, bypassing the law



  27. Google's Fight to Keep APIs Free is Lost, Let's Hope Google Continues Fighting

    SCOTUS refuses to rule that APIs cannot be considered copyright-'protected', despite common sense and despite Java (which the case is about) being Free/libre software



  28. Patent Trolls in the Post-Alice World

    A round-up of news about patent trolls in the United States, some of whom are are doing well and some of them not as well



  29. DDOS Attacks Against Techrights

    Information about some of the most recent DDOS attacks against this Web site and the steps to be taken next



  30. The Patent System Not What it Used to be, Large Corporations and Patent Lawyers the Principal Beneficiaries

    A look at some recent patent stories and what can be deduced from them, based on statistics and trends


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