How Much of Your Device Cost is Going Towards Legal Fees?

Jason Marquand - Bayshore Solutions IT Manager
By: Jason Marquand – Bayshore Solutions IT Team
Every day as I make my way through all of my tech blogs, I see at least one article about one technology corporation suing another over patents. This has been occurring so frequently in present day that you have to wonder “How much of what I bought is going towards legal fees?” It’s either Apple suing Samsung or Google, or vice versa for patents that should not be applicable in the first place. The patent laws in this country need to be reformed, and quickly. Hundreds of millions of dollars a year are spent by these corporations over frivolous legal battles attempting to ban the import of competitor’s products, or force them into some sort of expensive licensing structure. Microsoft makes money on every Android device that is sold, an estimated $444 million a year. Google is purchasing Motorola Mobility for their patents to help cover their device vendors, which will help negate the legal woes created by patent infringement. Apple uses lawsuits to counteract their slipping hold on the mobile OS market, particularly with their largest competitor, Samsung.
In this day in age we see more and more anti-competitive behavior from businesses dressed in lawsuits over patents that should never have been allowed. One of my favorite recent lawsuits is over the slide to unlock patent. Apple is suing anyone and everyone who uses his feature. But if you think about it, should a thumb swipe to bring a phone out of a lockscreen be something you patent? It is a simple human behavior that is intuitive and easily learned. Should we patent the simple mechanics of the human hand next? Who gets that patent? Everyone’s deity of choice? Charles Darwin? This sort of mechanic should not be patent worthy. The only things that should be covered by patent laws are things that require manufacture. It should not be a sword that a company uses to keep their competition at bay.
Over the holiday we saw a few items that sold quite well, namely for this example the Kindle Fire. It managed to outsell the iPad, which has had a stranglehold on the tablet market. The entry price point of $199 for a well equipped tablet made this tablet a big seller. Now in comparison to other Android based offerings on the market, even the iPad it was within 50-60% cheaper than anything else on the market. What Amazon did to differentiate their product was to use a custom skin that skated around the patents already at play by their competitors. This kept price down and allowed them to get some saturation in a market dominated by Apple. Now look at the iPad and the other higher end Android tablets in the tablet space. They start at $400 and reach prices as high as $700, based on internal storage and size of the device. Which makes you wonder how much of that cost is legal fees, and licensing? Wouldn’t it be easier to stop the legal wrangling and reform patent laws to exclude some of the more common sense aspects of design and ergonomics to deter the manufacturers from filing non-stop lawsuits? Which would then lower costs for the end user and increase market share by getting these products into the hands of people that cannot afford these items at their current price points? Just my $.02.
Jason Marquand is an IT Manager at Bayshore Solutions—a Tampa Web Design, Web Development, and Internet Marketing Company.




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