Monday, October 17, 2011

Getting the competition right: Is it 'Apple against Samsung' or 'Apple against Android'?

I was just doing a response post on IVLE on a thread regarding the ongoing patent wars, particularly Apple v. Samsung, and a thought occurred to me: who's the biggest loser in this equation?

So far, apart from Samsung, Apple is also embroiled in several cases across several jurisdictions with major Android phone makers such as HTC and Motorola. One of the reasons is that because of Android’s late entry into the digital platforms market, therefore it is still lack a wide range of patent holdings to render itself immune to litigation. As compared to Android systems, Apple seems to be in less legal tussles with WebOS and Windows Phone, and the fundamental reason might be because of the strong patent portfolio of its creators (HP and Microsoft respectively).

But it looks like Samsung is find loopholes through which it can get its products out to consumers in a legitimate way, despite the courts’ unfavorable ruling. When the ruling was passed in August 2011 that Samsung smartphones are banned from sales in the Netherlands due to an infringement of Apples patented photo-flicking technology, Samsung sidestepped the ruling by removing the disputed function from its Galaxy smartphones before launching them on the market. Problem solved. Samsung also, upon court injunction for a page-turning patent, simply re-engineered the function and issued an update to its users, skirting the issue easily. But other Android makers like Motorola and LG Electronics have decided to play it safe with a ‘wait-and-see’ tactic by withdrawing disputed functions from their devices’ OS before launching, in the wake of the many legal tussles regarding patented technologies.

At the end of the day, patent wars will mean the ousting of competitors without a diverse patent portfolio and consolidation of companies to form strong alliances against other alliances, thus effectively stifling competition and space for creativity and innovation. So instead of having a diverse range of products to choose from, consumers will have fewer choices in markets where certain products are banned from sales. This allows companies such as Apple to exert forceful control over consumer choice instead of allowing market forces to play the part in ensuring healthy competition. It is not too difficult to see who the biggest loser in the patent wars is.

‘Does Apple’s Patent Win Against Samsung Put More Android Devices at Risk?’http://www.wired.com/gadgetlab/2011/10/apple-samsung-australia/
‘Samsung to Sell Smartphone Without Apple Patents’http://english.chosun.com/site/data/html_dir/2011/10/13/2011101301164.html
‘Apple/Samsung Circus Could Impact Consumers’ http://www.thestreet.com/story/11259079/1/applesamsung-circus-could-impact-consumers.html

(This first appeared in NUS IVLE Forum for NM4206 Media and Communication Regulation. So I'm not infringing upon my own copyrights. :P )

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