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The Apple-Samsung verdict: A “win” for Windows Phone, but will it really matter?

Aug 25, 2012 12:31 am by Kip Kniskern | 19 comments

android A verdict was reached in the Apple-Samsung US federal patent lawsuit late today, and Samsung was found to have, in some circumstances willfully, infringed on patents held by Apple in some of its Android mobile devices. The jury awarded Apple just over $1 Billion, with potentially a lot bigger award coming as the Judge Lucy Koh could award up to triple damages for the willful infringements.

A number of blog posts today pointed to Microsoft and Windows Phone as “winners” in the case, and while any attempt to slow Android down could be seen as a win, a connection between this verdict and potential Windows Phone sales is thin at best, at least this early.

Make no mistake, while Apple and Samsung were the ones in court, this suit is and always was about going after Android, the “open source” mobile operating system created by Google. In a post today entitled “A Verdict That Alters an Industry”, the New York Times quotes a University of California law professor on what the decision means for Android:

While Google is not involved in this case, Apple was clearly going after Android all along, said Robert P. Merges, professor of law and technology at University of California Berkeley School of Law. If other handset makers using Android fear that Apple will take them on and win, might they shy away from Android? “There are a lot more players in the Android world who could be involved in the future in litigation,” he said. “And it’s going to raise the cost of everyone in the Android system if the damages stick.”
Shifting to a less popular software system, like Windows or even Research in Motion’s operating system expected to arrive next year, gives Apple an advantage in the marketplace.“It’s not good news for Google,” Mr. Merges said. “Apple’s real target is the Android ecosystem, the Android world, everything having to do with Androids. That’s really what they are targeting here.”

But while this verdict and its aftermath might well make OEMs think twice about using Google’s “free” software in the future, Samsung sold $5.8 Billion worth of Android devices in just its last quarter, and almost no matter what the courts say, Android isn’t going away anytime soon.

In fact, it could be said that Google knew full well that things may come to this, but realized that the benefits of upending the industry could potentially far outweigh any pesky lawsuits that might arise (especially since it would most likely be the hardware manufacturers or the carriers, that is, the ones directly making money, who would get sued). Meanwhile, Google could slow down Apple (and oh, by the way, Microsoft, too), gain a bigger mobile foothold for Google search, and maybe even disrupt the US patent process while it was at it.

Meanwhile, it could be argued that Microsoft figured that with all its patents, it didn’t need to move quickly and boldly in the mobile marketplace, and allowed Apple and then especially Android to leave it in the dust. Microsoft may have been in the right in the eyes of the Patent Office, but Apple moved first, and Google took advantage of the situation, consequences be damned.

And even with a billion dollar verdict, the consequences just aren’t that dire. It’s far more likely that Samsung and the other manufacturers using Android will just pay a license and a fine and keep right on going. The thought that Windows Phone will see some huge surge in either immediate sales or new partnerships is probably not much more than wishful thinking.

Could Microsoft benefit from today’s verdict? Eventually, of course it could, and probably will, to some degree. Will the verdict sell any Windows Phones tomorrow, next week, or even next year? That’s more doubtful, and hopefully Microsoft has learned a lesson and will rely on innovation and speed to market and less on a pile of patents to hide behind as it tries to catch up to both Apple and Android.

This entry was posted in Featured, Opinion and tagged Android, Windows Phone. Bookmark the permalink.

Hulmiho
apple is evil and jobs was a vampire
JSYOUNG571
Absolutely Not! Apple and Google are big in the mobile industry because they are consistent and reliable. That is what Microsoft is “NOT” when it comes to Windows Phone. A court case like this is not going to bring customers back who’s trust was broken with a company that has done nothing but put out beta phones that have turned into bricks in a matter of months. Sorry. My keyboard on my Titan just disappeared again.
- Avatar Roku
  Android has been consistent and reliable? Thanks a lot, you made me spit milk all over my laptop!
- Guest
  Huh? Android upgrades are in complete disarray. And even Apple has repeatedly not backported new OS features to previous phones. I’m not defending what MS did with the WP7->WP8 transition, but let’s be clear about the facts. Apple is big in the phone industry because it changed the paradigm and made smartphones much easier to use. Google is big because they filled the vacuum left by MS’s WM sidelining, were free, and were the only semi-compelling option OEMs had at that time.�
- http://www.facebook.com/ShaneNokes Shane Nokes
  Talk to AT&T about that. Tango is available, and HTC already finished the update. It’s AT&T dragging their heels on it at this point it would seem.
http://twitter.com/efjay01 Ef Jay
Well said, Kip. Should send this over to the dreamers at wmpoweruser, they’ve practically declared android dead and WP as the new #1 mobile OS!
Kyle
I don’t really think this changes much, really. If you look closely at the verdict, the Samsung phones that were found to infringe on Apple patents all had their custom Samsung skin. The “Google Experience” phones largely escaped. So, this verdict isn’t a win for Microsoft (sadly), it’s a potential win for anyone who hated having that skin on their phone.
cornerofthemoon
I recently switched to Windows Phone from Android. WP runs smoothly and it has yet to crash or freeze on me. WP8 seems to address the current platforms shortcomings. I doubt Microsoft will ever overtake Apple or Android but they at least deserve to be a solid #3.
- Avatar Roku
  Microsoft will overtake the competition if they are the least costly/safest choice for OEMs.
  - Guest
    If that were true, Symbian or Bada or xx would be king.
Avatar Roku
The writer of the article fails to understand the damages done to Samsung and Android beyond just the monetary damages. Because of the willful infringement findings of the jury the judge has the power to triple the damages, but even beyond that there are more serious problems.
With this ruling and the jury validation of these patents, Samsung and other Android phones will be quickly and easily banned from sale in the US. Future phones and current Android phones will be forced to rip out important features like multitouch in order to avoid bans and willful infringement penalties. Samsung’s brand is also irreparably harmed as the mainstream media reports on this ruling.
This ruling could be the beginning of the end of Android as we know it. If Android devices can’t do pinch to zoom or one-finger scrolling for example without fear of willful infringement findings and injunctions this will lower customer satisfaction with these devices even further.
- http://www.LiveSide.net Kip Kniskern – LiveSide.net
  If the rulings survive appeal, Samsung may be forced to license the technologies from Apple,and cut into the profits it earns, as we said, but we doubt these rulings will shut Samsung Android development down.
  If those fees are high enough, it may make Windows a more attractive alternative, but we just don’t see the situation as being so dire that there will be an immediate rush away from Android.
  - Avatar Roku
    A jury decision isn’t going to get overturned on an appeal.
    It won’t shut down Samsung Android development overnight but $24-$30 per phone royalty to Apple on top of a $10 per phone royalty to Microsoft on top of further lawsuits and royalties paid to patent trolls and whoever else has free reign to go after Android OEMs…. Suddenly a Windows Phone license and indemnification begins to look really attractive at only $15.
    If Samsung signs this royalty deal with Apple there will be a sizeable move away from Android. If it becomes a requirement to pay $35-$45 per phone to Apple & Microsoft with no protection from other patent claims then Android is no longer an attractive option for OEMs.
    And Apple wants $40 for every Android tablet so that combined with the impending success of Windows 8 really makes the Android tablet situation bleak.
    - Guest
      The problem for MS is that it hasn’t been able to generate much momentum for WP. And what fans for WP it did have got screwed over when WP8 wasn’t backward compatible. So now WP8 will have to start all over again, but with the baggage of WP7 having not done well in the market and dead-ended the few people who did buy it. If Samsung’s choice is to pay $45-60 to Apple. MS, etc, but preserve the high velocity of its Android sales vs $15 to MS and be in the uphill demand creation business with a less sweet deal than Nokia, which are they going to choose?�
scorpdragon
Let’s not make to big of a deal until we see the verdict on the appeal.
Guest
MS lost to Apple in mobile not because it was confident in its patents, but because it was convinced that Apple couldn’t enter a high volume commodity business and become a seriously challenger overnight when MS had taken a decade to get into a #3 or 4 position. It was typical MS arrogance and epic competitive misjudgement. Android managed to slip in after because MS took three years to respond and OEMs could’t afford to stand by with only WM to compete with.
It’s been reasonably well established via the Oracle trial that Google was fully aware of Android’s IP exposure. So you’re on target with your speculations there. And I agree that this loss changes very little for Android. Yes, some of the more minor Android OEMs who can less affors settlements this big will be worried. But Samsung is the Android leader by far, and can easily afford a billion here and a billion there. The genie is out of the bottle. Android is the defacto Windows of the mobile world. It will probably become the defacto Windows of the tablet world too. Apple will be left with their traditional spot of smaller, high-end, very profitable alternative, and MS looks to be SOL.
WebUser
I agree that the connection is weak, people who are talking about it did think twice, however, in a grant scale, android is a dead platform. As I said it before, with release of Windows 8, android in tablet will diminish instantly. With Nokia WP8 out, I don’t think anyone would be buy shit from Samsung no matter what OS they are running on. �
- RM199724
  Android is dead? If you haven’t noticed the Nexus 7, maybe the Nexus 10 will awake you.Android will die together with Google. You think Google will die soon?
Rikkirik
Yes it does matter. Android is a pile of mounting cost for Google and it’s partners. First of all most Google partners making Android products (phones, chrome and tablet) are making huge losses, except Samsung. Secondly 98% of Android smartphone makers are licensing patented technology (used in Android) from Microsoft, including Samsung, HTC, LG, Amazon, Barnes & Noble etc. Android does infringe on Microsoft patents and Samsung devices do infringe on desigh patents from Apple. Now Samsung will have to rethink their desigh and invest in new concepts for smartphones and apps. What these cases prove is first of all that what comes cheap, does not a profit make. Secondly, it highlights the weakness of Google to project it’s Android partners against infringement of core Android software and desigh patents, despite it’s 12 billion forced acquisition of the lossmaking Motorolla company (Google was forced by Apple and Microsoft to aquire Motorolla for it’s patents, to protect itself against litigations from Apple and Microsoft). The forced aquisition of Motorolla also lead to a restructuring, which meant a big hit for Google with the restructuring costs likely to mount in the coming years. Android is becomming a liability for Google and it’s partners and the end is not yet in sight, since more companies are taking Android makers to court (like Nokia). These year on year mounting losses on Android, compiled by Google and it’s partners, are huge. Since 96% of Google revenue and profits still come from Search, Android is a big money losing venture for Google and it’s partners. Microsoft will benefit from this all, even if it’s just because of the licensing deals that Android smartphone makers have to pay Microsoft. But is will mostly benefit of this because of W8, which will be unique and differntiate itself in many more ways than W7 ever did. W8 phones multicore and integration with W8 tablets, PC and other windows bussines applications will be the ultimate differentiating factor which will boost W8 phones sales. Android will only lose market share from the launch of W8 phones, tablets and PC’s. Mark these words, consider it done. �