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Businesses Google Microsoft Patents The Almighty Buck The Courts Apple

Patent Case Could Shift Power Balance In Tech Industry 83

An anonymous reader writes A lawsuit between Apple and Google could drastically change the power balance between patent holders and device makers. "The dispute centers on so-called standard-essential patents, which cover technology that is included in industry-wide technology standards. Since others have to use the technology if they want their own products to meet an industry standard, the companies that submit their patents for approval by standards bodies are required to license them out on 'reasonable and non-discriminatory',(paywalled) or RAND, terms." If Apple wins, the understanding of what fees are RAND may decrease by at least an order of magnitude.
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Patent Case Could Shift Power Balance In Tech Industry

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  • by khoker ( 1028434 ) on Wednesday April 08, 2015 @03:37PM (#49432445)
    It's Google VS Microsoft. The first line of the link says as much. Apple only (rightfully) sided with Microsoft. They aren't involved in the lawsuit.
    • by msauve ( 701917 ) on Wednesday April 08, 2015 @04:50PM (#49433085)
      It's Microsoft v. Motorola. Microsoft is the plaintiff, and the patents which Google acquired when it purchased Motorola Mobility are what's at issue, specifically what Google charges Microsoft to use them.

      But yeah, trying to say it's Apple v. Google is a troll.
    • by jedidiah ( 1196 )

      Nonsense. Both Apple and Microsoft are in the wrong here.

      If it's a part of an "industry standard" then the patent should be FREE. Don't like that? Don't make your invention part of something that no one can avoid.

      It's like recreating the DOS monopoly by committe.

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        If it's a part of an "industry standard" then the patent should be FREE. Don't like that? Don't make your invention part of something that no one can avoid.

        While I agree, aren't Microsoft and Apple at least arguing in that direction (they want it to be cheaper and their foe wants the licensing to remain as prohibitively and market-entry-denyingly expensive as possible)?

      • Re: (Score:3, Insightful)

        by brausch ( 51013 )

        You've got it backwards/sideways/confused/something.

        Apple and Microsoft are on the SAME SIDE and are arguing FOR CHEAPER licenses.

        RTFM. It's only about one page long.

      • by Anonymous Coward

        Yes. I don't understand why novel and useful inventions should be licensed for peanuts(preferably free apparently to M$ and Apple although IIRC M$ actually does own some standards patents unlike Apple who have nothing non-obvious, novel and useful) while utterly useless and obvious sh!t(complete w/prior art in the physical world) like unlock is somehow worth trillions.

        Also no, just because a particular invention is utilized in an industry standard does NOT mean that it should be free. The body creating th

        • I don't understand why novel and useful inventions should be licensed for peanuts(preferably free apparently to M$ and Apple although IIRC M$ actually does own some standards patents unlike Apple who have nothing non-obvious, novel and useful) while utterly useless and obvious sh!t(complete w/prior art in the physical world) like unlock is somehow worth trillions.

          Because "slide to unlock" isn't necessary to communicate voice data and IPv4 packets to an LTE mast. If you can't see the difference between a patent on a radio or transmission scheme, and a design patent for a gimmicky touchscreen feature then you really have no business commenting on standards essential patents and the licensing schemes that surround them.

          • by Cederic ( 9623 )

            This is an excellent point.

            Expensive research, inspired innovation and extensive testing to assure reliable, robust and effective radio equipment should definitely be worth more than fucking obvious "do more than accidentally touch the screen to unlock" elementary design.

            So I agree entirely that there's a difference, and so do the standards bodies - they don't need a standard for sliding as it's such a trivial thing to think of, design and implement.

            After all, nobody is forced to comply with the standards,

    • by thaylin ( 555395 )

      So you are saying MS and apple should be forced to release their industry standard patents for free, or at least a magnitude cheaper than they are now?

  • by Jax Omen ( 1248086 ) on Wednesday April 08, 2015 @03:37PM (#49432447)

    specifically, RAND(toomuch,waytoomuch).

  • So is the summary stating that Apple is trying to obfuscate the fee structure or trying to obfuscate which patents are subject to RAND terms?
  • Hmm... (Score:5, Insightful)

    by pushing-robot ( 1037830 ) on Wednesday April 08, 2015 @03:42PM (#49432509)

    Can't say I'm rooting for either party here, but I hate the idea of SEPs [wikipedia.org] in general... If a method is literally the only permitted way to do a thing, should it be patentable?

    • Re:Hmm... (Score:5, Interesting)

      by erice ( 13380 ) on Wednesday April 08, 2015 @04:29PM (#49432903) Homepage

      Can't say I'm rooting for either party here, but I hate the idea of SEPs [wikipedia.org] in general... If a method is literally the only permitted way to do a thing, should it be patentable?

      If there is only one way to do it, then it is a fact of nature and can not be patented. Also, if the standard has been published, that counts as prior art so no new patents can be applied there. However if I choose to create a standard that requires your existing patent, why should that give me the power to invalidate your patent?

      Standards bodies usually try to avoid patents but this is often not practical because there are so many patents and the best solution is often patented.

      • Re:Hmm... (Score:4, Informative)

        by tlhIngan ( 30335 ) <slashdot&worf,net> on Wednesday April 08, 2015 @05:13PM (#49433251)

        Standards bodies usually try to avoid patents but this is often not practical because there are so many patents and the best solution is often patented.

        No they don't.

        A standards body works like this - industry wants to come up with a new standard for some reason - perhaps faster part, new technology whatever. So the standards body convenes a group of people from industry who then argue out the merits and the specifications of the new technology standard. Along the way, patents get hashed out - and a lot of politicking goes on in getting your patent in the standard.

        When it comes to patents and standards, you have two options - you could not offer the patent for licensing and have the standards body work around it, or you can have it become part of the standard, with the caveat that you must license to anyone and everyone as FRAND terms.

        Depending on the patent, one way may be better than the other, but in general, it's usually nicer to have people paying you so you make it FRAND. Which means at times there's a lot of back scratching to get your patent in the standard.

        Most standards are patented. Ethernet, WiFi, etc., they usually all have some form of license fee to be paid.

        • by Anonymous Coward

          There is a third option.
          Put your technology in the standard but don't tell anyone you own the patents on it. Then when everyone is implemented the standard you ask for license fees.
          This is what RAMBUS did.

          • There's also the fourth one: buy up failed companies that have patents in the area that the standards body is interested in, keep them quiet, review the standard but don't participate in the process, and once it's published and people have started shipping silicon then suddenly discover (to your absolute shock and surprise) that you own a few patents that (if you squint enough) look like the cover parts of the standard. Then send C&D letters to everyone to start the timer for the large damages from wil
    • Re:Hmm... (Score:5, Interesting)

      by AmiMoJo ( 196126 ) * on Wednesday April 08, 2015 @04:51PM (#49433093) Homepage Journal

      The problem is that companies spend money doing R&D on this stuff, and for once it's actually real stuff they are inventing that is genuinely non-obvious and has practical uses. We all benefit if the standard can make use of the best technologies available, otherwise we would have to wait for patents to expire to get things like faster mobile internet access.

      The RAND rules are supposed to make sure that those patents are available to everyone at a reasonable cost. The issue here is that most companies just cross-licence their own patents on exchange for using the RAND ones for free, but Apple doesn't have any to licence and doesn't want to pay the (reasonable) monetary fee instead.

      All Apple has are a bunch of largely worthless design patents that can easily be worked around. It tried to buy in to the Rockstar patent abuse group but it wasn't enough.

    • by Anonymous Coward

      It's not that there is only one way to do a task.

      It is that in order to do a task in an interoperable manner, a standards committee has to pick one way among many.
      The participants obviously want the pick to require their patents.
      To get this to happen they have to agree to license them FRAND before they get picked.
      Being picked make you patent more valuable.
      It goes from a way to do something that somebody might, in theory want to do,
      to the way to do something that everybody wants to do.

      The problem is that rea

  • by Anonymous Coward

    The court case is between MICROSOFT and Google, not Apple and Google.

    Apple did file an amicus brief largely supporting Microsoft's position, but they're not a party to the case.

  • by Old97 ( 1341297 ) on Wednesday April 08, 2015 @03:46PM (#49432545)
    Can't the submitter at least read the article they are submitting? Moron.
  • While I like Apple just as much as any other Mac fan and have been known to be ding as a troll when commenting on Microsoft posts, I have to ask my self one good question about all the litigation between Apple and the world. When will this litigation cross the threshold of aggressiveness and open up Apple to review by regulators as acting in a monopolistic fashion? (dread the thought! I have zero desire to run Internet Explorer on my iPhone.)
    • Could Apple ever be considered a monopoly? They have around 25% of phones worldwide, and I believe it is around 5% of computers (from Wikipedia it looks like around 5% of desktop OSes).
      http://en.wikipedia.org/wiki/U... [wikipedia.org]

      • by jedidiah ( 1196 ) on Wednesday April 08, 2015 @06:34PM (#49433801) Homepage

        The degree to which Apple is a monopoly in any market is dependent entirely upon the point that a particular fanboy is trying to make that day. They can either be obscure and on the ropes or they can be nearly taking over the planet. It all depends on what that day's agenda is.

      • Antitrust rules generally don't require a monopoly in pure economic terms, they require that you have a disproportionate influence on the market. This can be a much smaller market share than 100% and can relate to close ties to other parts of the supply chain as well as pure market share issues (e.g. if Apple bought enough flash that they could require that all large flash makers charge everyone else 50% more than they charge Apple, then this is the sort of thing that antitrust regulations might cover). I
  • Nokia ... [is] seeking to overturn a lower court’s ruling that found in Microsoft’s favour.

    ... and there I thought MS owned Nokia.

    • by Urkki ( 668283 )

      Nokia ... [is] seeking to overturn a lower court’s ruling that found in Microsoft’s favour.

      ... and there I thought MS owned Nokia.

      MS bought mobile phone business of Nokia. I guess you could say MS pwned Nokia by getting Elop as the CEO, but that too is in the past now and Elop is back to MS payroll (I mean, publicly).

  • Time to prepare the fallout shelter, the end is nigh.

    On a more serious note they need to something similar with software patents. Well at least the ones that aren't complete garbage.
  • by The Raven ( 30575 ) on Wednesday April 08, 2015 @04:16PM (#49432767) Homepage

    I find it interesting that nobody is disputing the validity of the patents, but only the amount you can charge for them. Both sides want patents to remain strong.

  • by tlambert ( 566799 ) on Wednesday April 08, 2015 @04:24PM (#49432853)

    Any “standard-essential patents” should be public domain (or as close as possible, as Elon Musk did with the Tesla battery circuitry), or they should not be included in the standards. Period. FRAND/RAND is code for forming a club where the existing players get to play, but for which there is still a large - potentially huge) cost to join said club - and therefore an artificial barrier to entry into any existing market.

    Either make it free to license, or leave it out of the standard, please.

    • by Anonymous Coward

      The result of that will be that there are no more general standards, and once again every manufacturer is doing his own thing (since there is no longer any public spending in research, all of it is done by for-profit entities). Way to go for the benefit of the public...

    • by Derekloffin ( 741455 ) on Wednesday April 08, 2015 @05:12PM (#49433249)
      That just simply wouldn't work. As another poster already pointed out, if you deny them the patent, then they have no reason to involve themselves in researching such, or standardizing. It would also simply encourage even MORE patent trolling as any patent holder can now say their patent isn't FRAND/RAND. The whole point of FRAND/RAND patents is to encourage companies to cooperate, make standards, and not patent troll each other.
      • That just simply wouldn't work. As another poster already pointed out, if you deny them the patent, then they have no reason to involve themselves in researching such, or standardizing.

        No one is suggesting denying anyone a patent. What's being suggested is that if something is patented, it shouldn't be part of the standard which everyone has to follow to compete *at all* in the market.

        A really good example of this is the Qualcomm CDMA patent. They did a lot of great work, behind that patent, and they deserve the patent. But you shouldn't have to implement it in order to implement a cell phone that works, and be completely locked out of building cell phones otherwise. It should not be

    • by Ecuador ( 740021 )

      Ok, if you give essential patents for free, won't you also have to give insignificant patents (e.g. slide to unlock) for free? I know Apple is not much related to this regardless the summary, but they, for example wanted to charge others something like $20 for insignificant design patents, when at the same time they wanted to get basic communications ones almost free...

      • Ok, if you give essential patents for free, won't you also have to give insignificant patents (e.g. slide to unlock) for free?

        I think you are confusing de facto standards (like "slide to unlock") and de jure standards (like "RFC 793").

        The first is "I'd like to do this because everyone else is doing this, and it's neat". The second is "In order to get your device to talk to the Internet at all, you have to implement this standard".

        The term "standard-essential" in this context refers to de jure standards.

        While it might be a pain in the rear if you can not "slide to unlock", the only thing that it prohibits you from doing is having

      • Slide to Unlock is not necessary for a phone to talk to LTE towers, or send SMS messages.

        This is why there is a difference between design patents and standards essential patents.

    • Any âoestandard-essential patentsâ should be public domain (or as close as possible, as Elon Musk did with the Tesla battery circuitry), or they should not be included in the standards. Period.

      and from TFS:

      If Apple wins, the understanding of what fees are RAND may decrease by at least an order of magnitude.

      Are both the wishful thinking version of how things will play out.

      If RAND fees drop by an order of magnitude or are eliminated, the outcome is simple: Nobody will submit patents of any valu

  • by ndykman ( 659315 ) on Wednesday April 08, 2015 @05:09PM (#49433219)

    Well, to be fair, it's Microsoft vs. Motorola which was acquired by Google, which still holds the patents. Apple filed a brief in support of Microsoft. The ruling that Apple is support of upholding is that Microsoft only owed a couple of million a year for it's use of those standards in its products.

    Motorola sought an amount of four billion a year plus 20 billion in back fees. Google and Qualcomm is arguing the latest ruling was over-reaching, and that they need the ability to charge more. But, given the initial demand, it is clear they want to charge orders of magnitude more for these patents and to seek relief from previous sales. It's pennies versus dollars and that adds up.

    And frankly, Google should know better. It's benefited enormously from these technologies being available at a low cost. I know this goes against the Slashdot mindset, but Microsoft is on the right side of the argument here.

  • by godel_56 ( 1287256 ) on Wednesday April 08, 2015 @05:16PM (#49433295)
    BTW, if you register with FT you can get a limited number of articles a month for free (5?), although I had to go to the front page first before it would let me look at the story.
  • This one pisses me off because these type of standards mostly do actual valuable stuff but because they aren't 'essential' we have companies that try to devalue them. These same companies sue for billions for shit like slide to unlock and a slightly less shitty version of a shitty filesystem that became the standard for removable media because of illegal monopoly behave and use them to extort millions from say android phone makers.
  • by uvajed_ekil ( 914487 ) on Wednesday April 08, 2015 @07:55PM (#49434495)
    Given that RAND stands for "Reasonable And Non-Discriminatory," is it a bit ironic ironic that Ron Paul's son is named Rand?

    I can't say yet who I'm voting for in 2016, but I can tell you one guy I'm NOT voting for. Hint: I just mentioned him.

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