Post 9: Imperial War: Litigation or Licensing?

As the worldwide smartphone demand increases, more and more companies involve this kind of ‘battle without gunpowder’ and it will probably become more sever as time goes on. How to be the final winner of the imperial war? Let’s see how Apple and Microsoft’s different approaches to smartphone patent.

Apple: Once Apple innovates, it will shake all over the world, such as the shock we got by the first iPhone. However, once Apple’s innovation pace slows down, what would happen? When Apple’s CEO began to take over Apple’s “day-to-day operations”, Apple’s Board of Directors decided to use patent attack to replace Steve Jobs’ innovateon staff. By then, Apple’s patent war debut. It filed the patent lawsuit against its number one target, Google, smoothly under HTC and Samsung in the sight, perhaps, there are more enemies. So far, Apple has sued HTC, Nokia, Samsung. Nokia has sued LG, Toshiba, Hitachi, sharp, and etc. At the same time, HTC, Nokia, Samsung, Qualcomm responded spontaneously when facing their own plaintiffs. We can’t deny how great Apple used to be; however, we can also see the gradually reducing of innovation element in the generation interchange of the iPad and iPhone family. The new products bring less and less surprise to Apple fans.

Microsoft: Unlike Apple, Microsoft chose a different approach to enter the smartphone market. It chose to pursue de facto licensing arrangements in lieu of litigation. Instead of suing all other companies, Microsoft chose to cooperate with them as long as they pay royalties to Microsoft.

By comparing these two companies’ business behavior, we can’t judge whether it’s right or wrong. But if you let me select, I would prefer Microsoft’s way to do business. Reasons are simple, like professor Lavian mentioned in the PowerPoint, suing for patent infringement is costly and no way to make friend. Plus, the smartphone market is so large; it is impossible for one company to monopolize it. Yet, facing the market, you can fight with others or cooperate with them. It’s all your choices. I think if Apple wants to get back its leading position in the smartphone market, it’s not too late for them to think about their market strategy. Perhaps, Microsoft is the best model for them to learn.