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. Patents Roundup: Apple Versus Android/Linux, Leigh Rothschild Versus Everyone, Patent Lawyers Versus Patent Reform and Progressivism

    News collated which pertains to software patents, especially those which affect Free/libre software



  2. Links 4/9/2015: Acer Predator 8, GNOME 3.17.91 Released

    Links for the day



  3. Microsoft's Vista 10 Still a Failure, So Focus Shifts to Attacks on GNU/Linux, Android

    Vista 10 adoption is already plateauing (at very low levels considering the zero-cost 'upgrade') and Microsoft is trying to assert or exploit (patent) monopolies where adoption and market growth are extremely high (Free software)



  4. Links 3/9/2015: Xiaomi's Linux Push, Calligra/Krita 2.9.7

    Links for the day



  5. TechBytes Episode 89: Chromebooks, Privacy, and Vista 10

    An episode which focuses on the rise of Chromebooks, serious issues pertaining to privacy, media bias, and the demise of Windows



  6. Links 2/9/2015: Chromebooks and Red Hat Enterprise Linux 7.2 Beta

    Links for the day



  7. Software Patent From Troll Called 'Rothschild Connected Devices Innovations' a Symptom of a Rotten Patent System

    Another example of patent trolls and software patents as gatekeepers and parasites, denying access to very trivial ideas or implementations



  8. When Even Patent Lawyers' Blogs Acknowledge the Rapid Demise of Software Patents

    Voices for patents are accepting the new order wherein software patents are hardly potent at all (and increasingly difficult to acquire)



  9. Calling Proprietary Software, Software Patents, Lock-in (Like OOXML) and DRM 'Open'

    What Microsoft et al. call 'Next-Generation Open Media Formats' are basically neither open nor acceptable (it's DRM) and what Microsoft apologists dub 'Open Source Tools' are just another example of a Microsoft Office openwashing Trojan horse



  10. Recycled Old News About Vista 10, Stressing That Not Only '10' is Spyware But All of Windows is

    How Microsoft propagandists are spinning Microsoft's gross and potentially illegal privacy violations as a reason to 'upgrade' to Vista 10



  11. Links 1/9/2015: Manjaro Linux 0.8.13, Netrunner 14.2 LTS

    Links for the day



  12. Patents Roundup: IAM's Claims About India, Lawyers' Patent Bias, ITC for Microsoft, and PTAB Against Kyle Bass

    Another weekly summary, focusing on issues that pertain to or affect Free software in particular



  13. Microsoft Crowd Rocks the Media With Misleading Claims and Deliberate Lies About GNU/Linux, Vista 10, and Free/Open Source Software

    A roundup of rigged press coverage, intended purely to serve Microsoft's agenda



  14. Links 31/8/2015: Linux 4.2, LXLE 14.04.3

    Links for the day



  15. IRC Proceedings: August 9th, 2015 – August 29th, 2015

    Many IRC logs



  16. “Conservative” Site Responds (Yet Again) to Misguided “Conservative” Efforts to Derail Patent Reform in the US

    Patent trolls throw stones in glass houses, contributing to their own unpopularity, but some influential “Conservatives” continue to defend (conserve) them



  17. Increase in Lobbying for Software Patents in Europe and Its Trojan Horse, the Unitary Patent (UPC)

    The relentless campaigns to bring software patents into Europe have not stopped and so-called 'unification' -- much like so-called 'trade' deals -- serves to support them



  18. Microsoft Technology Crashes Financial Markets, Again

    SunGard, which is a Microsoft shop, is clearly failing to provide what it calls mission-ciriticaal [sic] solutions



  19. Alice v. CLS Bank (Alice/§101) Comes to Squash Software Patents Even in Eastern District of Texas

    The crackdown on software patents is coming along nicely and the Alice case is now being utilised even in the capital of patent trolls



  20. Apple's Patent Cases Against Android Are Falling Apart, as Acknowledged Even by the Anti-Android Lobby





  21. Links 29/8/2015: NetworkManager 1.0.6, Systemd Merges “su” Command Replacement

    Links for the day



  22. Microsoft Loves Linux to Death and Still Tries to Kill GNU/Linux

    Microsoft's relentless attacks on GNU/Linux and Free software in general (even if it runs on Windows) are so evident that claims of 'love' remain laughable at best (if not infuriating)



  23. Censorship, Self-Censorship and Intimidation Now the Modus Operandi at EPO

    The European Patent Office has ceased even trying to pretend that it respects human rights, including the right to free speech



  24. Patent Practitioners: "The Unitary Patent Might be Able to Open the Floodgates for Software Patents in Europe"

    The EPO-backed Unitary Patent scheme threatens to bring software patents to Europe and along with them a lot of patent trolls from all around the world (especially the United States)



  25. Microsoft Lies About Vista 10 and Increases Microsoft Surveillance (Even Beyond Vista 10 and Into Android, Vista 7/8)

    Windows surveillance expands retroactively, making its way into platforms other than Windows and also expanding to predecessors of Vista 10



  26. Another Suicide at the EPO, Fifth by Our Count

    Yet another EPO member of staff has just committed suicide, leading to the inevitable question: how many people need to die before Battistelli and his minions are out of the Office for good?



  27. Links 27/8/2015: ownCloud Desktop Client 2.0, Red Hat Downgraded

    Links for the day



  28. Microsoft-connected Mesosphere Threatens to Eliminate Free Software in the Datacentre

    Hiding behind a misleading 'open' label while actually backed by Microsoft (and based on new rumours may join Microsoft), Mesosphere wishes to eradicate Free and back doors-free software in large datacentres hosting a lot of physical and virtual servers



  29. Microsoft Aggression Against GNU/Linux Amid Vista 10's Failure

    A look at the recent assault on GNU/Linux in Munich and the likely cause for this assault (in such a timely fashion, too)



  30. Message to LinuxCon Regarding Microsoft: “It is Necessary to Get Behind Someone in Order to Stab Them in the Back.” -Sir Humphrey Appleby

    Jim Zemlin, executive director of the Linux Foundation, helps Microsoft gain influence in the Foundation after payments are received


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