Two victories could increase Apple's IPR threat

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Two victories could increase Apple's IPR threat

iPhone maker gains important multitouch patent and can bid for Nortel's IPR, both could lead to pursuit of its rivals

By CAROLINE GABRIEL

Published: 24 June, 2011

READ MORE: Apple | UI | Patents/IPR

After its defeat by Nokia, Apple has received two pieces of better news related to intellectual property, both with the potential to increase its leverage over its wireless rivals. It has been awarded a multitouch patent with which some experts believe it could aggressively pursue smartphone competitors, and it has been cleared by antitrust agencies to bid for Nortel's huge store of IPR at a bankruptcy auction next week.

The multitouch patent was filed when Apple first launched the iPhone in 2007 and has only just been awarded. Some observers played down its significance because it is highly specific, covering a specific set of gestures to navigate web pages on touchscreen devices ' in particular governing frames within pages, such as embedded maps. The patent is entitled 'Portable multifunction device, method, and graphical user interface for translating displayed content'.

But others believe US patent 7,966,578 will bring Apple the ability to litigate against most of its rivals, or force them to develop expensive workarounds, because it covers such basic functions of the smartphone user interface. Of course, it's early days to make such claims, since the process of analyzing its strength, and any infringements, will be complex, but the award highlights once again how vital IPR assets are to competiveness in the top ranks of the mobile industry.

Florian Mueller, an expert who writes the FOSS Patents blog, wrote: "This patent describes the solution at such a high level that it effectively lays an exclusive claim to the problem itself, and any solutions to it. Moving objects on a touchscreen with multitouch gestures is a very essential function. I can hardly imagine that smartphones and tablets would be competitive in the future without multitouch object moving."

"Since Apple acquired FingerWorks in 2005, they've been regularly filing patents for gestural interfaces. They've had a significant headstart on the competition in this regard, and that bodes well for Apple's ability to defend its intellectual property," Raven Zachary, an analyst and iOS consultant, told CNet. He added: "If Apple were to defend its gestural patent portfolio broadly in the emerging tablet market, it could really hinder innovation by other technology companies. Does anyone really think that Apple would opt to license its patent portfolio unless it's bilaterally"

Meanwhile, the company could gain greater firepower in the essential workings of wireless networks and devices, areas where its relative weakness led to defeat by Nokia. It has received approval from the Justice Department's antitrust division to bid for Nortel's patent portfolio, which includes many important assets related to LTE, MIMO and other critical technologies. Google has set the starting price for next week's auction with a $900m stalking horse offer designed to boost the search giant's low profile in wireless IPR. Apple will be keen to prevent that, and to enhance its own position against more established mobile players like Nokia and Ericsson. These giants could also bid, as could Intel, RIM, patent accumulator RPX and Microsoft.

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