Wednesday, October 6, 2010

Telecom Giants Lose Interest in Consumers - Turn to Lawsuits

Motorola Inc. is currently suing Apple Inc. over patent-infringement. Motorola claims that Apple is illegally using some of their early-stage technologies in the iPhone, iPad, iTouch, and some Macintosh computers. These complaints are nothing new to the telecommunications industry, particular to those who are top competitors. Intellectual-property lawsuits have made the courtroom as cutthroat as the marketplace, a battle ground where both rookies and veterans of the industry compete. According to one patent lawyer, these lawsuits aren’t even so much about the technologies themselves but more about slowing down the other companies and proving who has the most power.

These types of lawsuits have been filed in increasing numbers recently as the line between computer manufacturers and mobile-device makers becomes less defined, as has been seen with Apple and Hewlett-Packard Co. entering the mobile sector at the same time as traditional makers of mobile phones like Samsung Electronics Co. become players in the tablet market. The movement between markets has caused new rivalries among competitors. Due to this, companies are becoming more vigilant about licensing their intellectual-property and responding when a rival company is infringing on those patents.

While the issue of copyright infringement is serious and many of these lawsuits are just, some concerns can be raised about the idea of the courtroom as a second marketplace, implying that companies should be placing as much of a focus on suing other companies as pleasing the consumer and developing new technologies. This will do little to further the telecommunications industry and will force companies to put considerable money, time, and resources into winning these legal battles. Not to mention the impact it will have on their CSR if they are found guilty of stealing intellectual property and it is leaked to the public sector.


http://online.wsj.com/article/SB10001424052748703735804575536230822496028.html?mod=WSJ_Tech_LEFTTopNews

1 comment:

  1. This lawsuit, in my opinion, is nothing but a publicity stunt to make Apple, a power company in the industry, look bad. The idea that these lawsuits are not sincere is very unethical and just a peak into what people will do to succeed. In this article, Mark Kesslen, a patent attorney says that Apple will most likely retaliate with a lawsuit against Motorola. I wonder, for what? Is this really the way businesses want to run?

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