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Jobs' 'nuclear war' is not doing Apple any good - analyst

Rivals will evade patents with crafty workarounds

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Apple's patent wars will start to hurt shareholders if Apple continues to pursue its lawsuits against Samsung, HTC and Motorola, an analyst has said.

Kevin Rivette, a managing partner at 3LP Advisors LLC, told Bloomberg that even if Apple won its patent battles, it was playing a losing game. Legal fees aside, the "thermonuclear war" that Jobs launched against the Android manufacturers in a fit of rage circa 2009 isn't stamping out Cupertino's competition but the hostility engendered could stop Apple from getting access to new technology it needs.

Lawsuit decisions that go Apple's way don't rid the market of competition, said Rivette, because in most cases the manufacturers will find a workaround which may hamper their devices but doesn't keep them out of the market. For example, after a ban on their tablet device in Germany, Samsung modified the Galaxy Tab, creating a new 10.1 N version that looks likely to be accepted by German courts. The Oz ban on the Samsung gadget has been lifted too.

“A scorched-earth strategy is bad news because it doesn’t optimize the value of their patents -- because people will get around them,” he said. In cases where Apple lose, Rivette argues that the tech titan would have been better off seeking settlements to get its hands on rivals' technologies.

There's no immediate end in sight, though. The past few days have seen Apple's thirst for patents continue unabated, such as the Apple land-grab of fuel cells for mobiles. Meanwhile Samsung is suing Apple for its use of emoticons. ®

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Frankly...

...the more I hear about the inner workings (if they can be called that, rather than 'Dictation By Edict') of Apple, the less I want to see their products on the shelves. Good God, FUEL CELLS now?!

I'm sincerely hoping the the shareholders for Apple will take their collective votes and use them to tell Apple to STFU on patents (which I firmly believe are being horribly misused in this war of stupidity), and to either become innovative again, which they were, pre-idiotphone, or to take a sodding chill pill and duke it out like normal companies, with their products, not their sodding lawyers.

In the mean time, here's a quote to consider: "Will someone not rid me of this troublesome priest?!"

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wow

The first bit of sense I have read/heard in regards to this bs.

Now how about the patent holders just develop work arounds for patents Apple holds and stop licensing anything to them that isn't covered under FRAND?

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OK, Probing Analyst ...

... since no-one else has tried to answer your point, I will.

I downvoted you because I do not agree with your comment. You seem to suggest that other companies refusing to let Apple use their IP is a bad thing, and equivalent to what Apple is doing to other to other companies. You also seem to suggest that you approve of Apple's actions. I disagree on both points:

1) For the other companies to shut Apple out of the playground is what any sensible group would do. I use the analogy deliberately, because Apple is the equivalent of a playground bully, taking other people's work and claiming it as their own, and even claiming that it invented the stick and that anyone using a long woody thing must pay protection money to do so. The sensible thing is for the others (who do not get along all the time but have a basic set of rules that they tend to stick to, more or less) to ostracise the bully and make him play on his own, but without any of the benefits of being in the "gang". This is the only way to restabilise the situation.

2) Apple may be operating within the strict rules of capitalism, but no-one likes anyone that plays games by the strict rules - they tend to be people with marked personality flaws. For that reason alone I do not like Apple, and can not approve of anything they have done under Jobs' rule. That doesn't mean that I couldn't change my mind about them, but so far, Apple has not produced anything that I would want.

I hope that helps. Happy New Year!

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