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IGNETT E
smartphone Patent Wars
pr Janayy 2011, the research firm Ganalys announced that Google's Android had finally surpassed
swiss pepietary Symbian operating system as the mest popular smartphone operating system
wordwide? It po not only a victory for the open source ‘software movement, but a tuming point
inte highly competitive race to capture market share in the, smartphone industry. The race began
in 2007 when Apple released its iPhone, the first highly successful smartphone, with a touchscreen
and p-notch Web-browsing capabilities. Less than a year later, Google released Android (an open
Source operating system for mobile devices) to the entire mobile industry. The release presented a
Cfalenge o Apple, Nokia, and Blackberry producer RIM, who were big movers in the market el
"och had their own propsietary operating systems. 1n 2008, Motorola delivered the Dro the
fi
"mer Andoid success, The Droid sold over 1 milion units in its fst few months 0° the mar-
~ -based
in2010, Taiwanbased smartphone manufacturer HTC came out with Me Android-ba
Sprint, the fastest wireless network in the Un! ied States. Google releasederg
+
14 Suddenly, Apple, Nokia, and RIM facag
is own Nexus One that same y* Sreat
competition.
the competition for market share disintegrated j
perhaps not surprisingly, in 2010, pel egtated into an Alloy
t war in the US. cout system. The battle focused not on operating systems, buy stig
patent i :
ser teennooges inv inthe development of smartphones. On March 2, APpe fied & aya
against HTC, ctaiming that HTC had infringed on 20 of Apple's patents.” The patents invotyg 7
touchscreens, graphical user interfaces, multitouch touch pads, signal processing, and other feayy,
developed for Apple's Phone, Simultaneously, Apple feu vunpiaint with the Intemational Tage
commission (ITC) against HTC in the hopes that the commission would Block imports of HTC hang
sels that violated Apple patents. Analysts speculated that this was an indirect attack on Google ang
its Android operating system.® Because both Google and Microsoft provided the underlying operating
system technology on HTC's smartphones, these companies might be forced to detend their own pro-
ducts if Apple were to be successful in its le
nelle, Chgiaily caught off guard by Apple's lawsuit,
HTC responded two months later by fting a complaint against Apple, accusing it of infringing on tive
HTC patents pertaining to power management and to hardware and software needed to implement
directories used in mobile phones. HTC asked the ITC to block the import of Apple's iPhone, iPad,
and iPod.®
Then, in October, Motorola filed four lawsuits alleging that Apple had violated 18 of ils
patents. In @ separate move shortly after, Motorola asked a federal judge to invalidate
Apple's multitouch patents, including those named in Apple's lawsuit against HTC. Apple
countered later that month with lawsuits against Motorola, claiming the Droid violated two
patents: one _
Pertaining to the Apple's multitouch feature and the other to ils use
interface.® ._—-—-“e
sa se
vats Ando vated patens elaled fe how the man
iphone synchronizes emails,
shat MO!
nth, Microsoft filed @ patent infringement lawsuit against Mot
lotorola. Mi
- Microsoft
ars; how a schedules meetings; and how It alerts applications
9 'S 0 changes ji
in
atts:
4 h.?° By the end of 2010, ever i
or signal strengt ), every major player
yer in the smartphone market
te me
ina patent war with at least one competitor. "*
on =
Jeading position in the mobile industry, wit
ty, with almost 30 percent of the
‘qoday. Nokia holds &
imarity because Apple, RIM, and others have
atl Sra primarily fe focused on smartphone products
advanced markets. However, in the fourth quarter of 2010, over 50 percent of
of ‘all
H pat target
ga to Western Europe and North America. As smartphone price:
ices
gobal smartphone, sales were lini
to decline and mobile networks improve around the world, smartphones will grab
an
continue
y in 2010, Nokia's market share fell by 7.5 points compared
creasing share of the market Alreads
saw an 67.2 percent growth in 2008. This resulted largely
tp the provius year. Apple, meanwhile,
wut the increase also came as a result of the expiration of
trom its expansion into new countries, B
communication service providers, including AT&T. The
excusive sales agreements with certain
‘Phone is now available through 185 communication service providers, including Verizon Wireless.
Ths i
« meang that the communication service providers will compete to offer the Apple iPhone more
cheaply. "2
So
sme analysts argue that the patent infringement battles won't have an enormous impact on
folios of intellectual property. with
market share
The major competitors have carefully buill uP por
search to uncover where the other
les of tovsands
of patents. They are spending time and ro
the day." one Wired analyst wales.
Companies mi
iat be infringing on their patents. “But, atthe end of
ther. Motorola
“all the
Major play
ers in the market will end up signing licensing agreements with one anott
Intellectual Proper