Apple Sues HTC to Scare Competitors

**Paul Daniel Ash** · 03-10-2010, 01:04 PM

Apple is suing rival phone maker HTC - whose popular phones are helping drive the upswing in Android sales - in order to scare off other potential competitors, according to a financial analyst with ties to the mobile phone industry. Yair Reiner of Oppenheimer Research said in a report to his clients that his "industry checks" led him to the conclusion that the legal action is "meaningfully disrupting" manufacturers' plans for new phones.

According to Fortune magazine's Apple 2.0 blog, Reiner traces the hardball Apple strategy back to a conference call early last year, where Apple number-two Tim Cook issued a blunt warning to any company thinking of making an iPhone killer. He said Apple "will not stand for having our IP ripped off and we'll use whatever weapons we have at our disposal," concluding - in a combination of corporate formality and mafioso-style threat - that "I don't know that I can be more clear than that."

Reiner said that the warning had the desired effect on companies thinking of coming out with touchscreen phones: LG, Samsung, and Nokia all backed off. When Palm came out with its Pre, Apple pretty much turned the other way, since Palm sells so few phones compared to Apple. When the Motorola Droid and HTC Eris Android-based phones shipped at the end of the year, though, the strategy shifted. Reiner says Apple figured that if it didn't respond to the challenge, other competitors would consider it a "green light." So Apple pounced on HTC, which - unlike Motorola - works with different suppliers than Apple does, and which manufactures the Nexus One phone for the Cupertino company's hated rival: Google.

Reiner says the strategy is working. Up until now, he wrote, companies have been mainly focused on avoiding making their mobiles too "iPhone-like" in terms of the user interface. Now, he says, they are looking at any technology that might come under a patent challenge. "We believe a lot of software and hardware is being sent back to engineering departments for work-arounds," Reiner told his clients.

Apple sued HTC last week in both the US International Trade Commission and the US. District Court in Delaware, charging that HTC had infringed more than 20 patents on iPhone technology. The suit asks for HTC to be banned from importing and selling phones into the US, and demands triple damages and maximum interest.

**adp** · 03-10-2010, 01:09 PM

Scare off competition? That sounds like socialism to me...wouldn't be much different to today's government though.

**Melech518** · 03-10-2010, 01:14 PM

This was covered, by me, on the front page over a week ago......

**adp** · 03-10-2010, 01:16 PM

^ I knew I had read it somewhere...
Apple is Suing the Google Phone Maker HTC

**CaptainChaos** · 03-10-2010, 01:17 PM

It's more like "protect what is yours". Scaring is a bit strong lol

**Bluprint** · 03-10-2010, 01:42 PM

Originally Posted by CaptainChaos

It's more like "protect what is yours". Scaring is a bit strong lol

Captainchaos stop humping the laser beam

**extremzocker** · 03-10-2010, 01:47 PM

"Mr Jobs, we have taken the liberty of upgrading your desk as you requested."

*unveils desk*

"The blue button is for sueing and the red for banning"

**CaptainChaos** · 03-10-2010, 01:52 PM

What does that mean "to hump a laserbeam"?

**Ichwohneinloche** · 03-10-2010, 02:08 PM

Apple has lost their mind.. I for one would prefer a HTC Legend over my Iphone 3GS any day at the moment. It's overall a better deal in comparison. Maybe 4G will keep people on the iphone and give them a reason to jump to HTC. How about competition instead of bullying *******!?!?!

**screamforme02** · 03-10-2010, 02:32 PM

Apple is a bunch of haters :P suck it apple should be happy you had the head start you've had

**one1** · 03-10-2010, 02:41 PM

Originally Posted by Melech518

This was covered, by me, on the front page over a week ago......

No the lawsuit was covered by you. This article is not focused on the lawsuit, but the underlying reasons.

**Melech518** · 03-10-2010, 02:50 PM

^touche

**TooSlo** · 03-10-2010, 03:00 PM

Interestingly Apple has also included a phone running WinMo 6.5 in their suit. News through the grapevine has also been that Microsoft and Google are 100% ready to back HTC in this fight.

I see little/nothing happening out of this all considering it will be tied up in the courts for the next decade and the question of an "iphone killer" will be long past.

http://techcrunch.com/2010/03/02/goo...apple-lawsuit/

**Bluprint** · 03-10-2010, 03:01 PM

Originally Posted by CaptainChaos

What does that mean "to hump a laserbeam"?

Never seen Austin Powers?

your like mini me humping a giant laser while Dr. Evil is blackmailing the world.

**lolcats1** · 03-10-2010, 03:21 PM

Originally Posted by adp

Scare off competition? That sounds like socialism to me...wouldn't be much different to today's government though.

erm, socialism simply means to have all industry owned by the government. socialism is the innability of companies to make any decisions at all, scaring off competition is unmoderated capitalism.

kid, how old are you?

**rkswat** · 03-10-2010, 03:47 PM

Originally Posted by adp

Scare off competition? That sounds like socialism to me...wouldn't be much different to today's government though.

Wow, talk about diarrhea of the mouth.... besides the "socialism" we already had here in America: Fire dpt, police dpt, public schools, medicare ect.... tell me one thing that has become "socialist".

As far as the joke lawsuits, pretty douche thing to do. Whats the matter apple, afraid someone might actually compete with iPhone?

**lolcats1** · 03-10-2010, 04:10 PM

Originally Posted by rkswat

Wow, talk about diarrhea of the mouth.... besides the "socialism" we already had here in America: Fire dpt, police dpt, public schools, medicare ect.... tell me one thing that has become "socialist".

none of what you said made sense there. rrhea means the increased abnormal flow of, and his statement was shorter than the one you used to try an attack him.

the second thing you said disproves itself. you said public services, and yes they are socialist, but not in the terms of government.

but then you go on and say "tell me one thing", even though you just listen 4 of them.

what are you trying to say? because you didn't

**pyromcr** · 03-10-2010, 04:19 PM

i dont think it scared anyone. it just makes apple look stupid...

**hancoma** · 03-10-2010, 05:10 PM

Soooo....what exactly is Apple suing for? Maybe I don't understand it, but it seems simply because it is a phone with similar characteristics they are suing....
Kind of like BMW suing Volvo over car designs that are very similar....
I think it's ridiculous, but then I may not have all the information.
Anyone out there willing to provide details to alleviate my confusion?

**MetallicaFan1991** · 03-10-2010, 05:23 PM

Sony should sue Apple as I'm sure the MB chiclet keyboard is copied of the Sony Vaios. I hope Microsoft and Google back HTC as lets face it the next best phone after the iPhone is HTC HD2 or Nexus One, both HTC. I think WM7 and Android updates are a threat to Apple and Apple knows they're going to have to give all the features iPhone owners want if they don't stop HTC advancing. Seeing as Apple doesn't want to give us what we want so they sue HTC.

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