Apple's (NASDAQ: AAPL) Lawsuit Campaign: The Good and the Bad

Apple's (NASDAQ: AAPL) Lawsuit Campaign: The Good and the Bad

Apple’s (NASDAQ: AAPL) Lawsuit Campaign: The Good and the Bad

Over the past several years, Apple (NASDAQ: AAPL) has engaged in a long fought legal campaign against its competitors such as Samsung, Google (NASDAQ: GOOG), HTC, Motorola and more.  There have been some wins for the tech giant and some losses as well.  Apple seems to have a tougher time with lawsuits over in China, as there are a lot of copycat companies that make an identical product, patent it, and sue Apple for infringement, racking up major legal fees for Apple. In theory, over time, these lawsuits could ultimately do a lot of damage

Earlier this week, we got big news that Apple and HTC had finally settled their differences and signed a “peace treaty”.  Under the new agreement, HTC will pay Apple $6 to $8 for every phone they sell.  Next year, HTC has forecasted to sell 30-35 million smartphones next year, which translates to $180-$280 million for Apple.  Apple and HTC both expressed relief in their settlement and thereby ending their three-year legal battles.  Many analysts and industry professionals suggest that Apple should use a similar approach to end the legal battles with its bigger competitors such as Samsung. However, Apple’s legal issues do not stop there.  It was recently discovered that a small, new company from China called GooPhone, has made an identical replica of the iPhone 5 that runs Android 4.1.  Unfortunately, the company is looking into suing Apple for patent infringement and this could get the iPhone 5 banned from China all together. 

The bottom line here is that Apple may be trying to deescalate the patent wars through its larger competitors but the little, fly by night companies are hurting the company as their lawsuits could have a serious impact.  Overall, I see Apple pulling through and returning to a high stock price.  All we must do is sit and wait for any new developments.

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    The lawsuits have been an enormous strain on the technology sector with corporate lawyers reaping the benefit. It would be grat if the stop fighting and concentrate more on innovation.

  • nmaithya

    The battle of patents will continue as long as rivalry exists. Apple knows this better, and that is why the tech giant will not rest. Additionally, patent infringement lawsuits is becoming another stream of income in the industry.

  • Tyokunbo

    Apple will find it difficult winning. It’s fighting on too many fronts at the same time.

  • lyieke

    Apple is taking it too far with patents. I wouldn’t be surprised if one day Apple patented the color of its devices. The blow back of the patents will eventually land at Apple’s doorsteps. Sooner or later, consumers are going to realize that Apple’s knack for patenting everything is one of the biggest hindrances to innovation.

  • samanthapl

    It’s easy to say that, but Apple was a major innovator into the smartphone market with its iPhone… there was nothing like it before. It’s design was copied. Why shouldn’t it sue?