[IP] Apple blunder gives Gates iPod royalty
Begin forwarded message:
From: Henry Fleischmann <henry@xxxxxxxxxxxx>
Date: August 14, 2005 8:55:44 AM EDT
To: "Farber, Dave" <dave@xxxxxxxxxx>
Subject: Apple blunder gives Gates iPod royalty
For IP if you like
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http://news.independent.co.uk/business/news/article305638.ece
Apple blunder gives Gates iPod royalty
By Katherine Griffiths in New York
Published: 14 August 2005
Apple Computer may be forced to pay royalties to Microsoft for every  
iPod it sells after it emerged that Bill Gates's software giant beat  
Steve Jobs' firm in the race to file a crucial patent on technology  
used in the popular portable music players. The total bill could run  
into hundreds of millions of dollars.
Although Apple introduced the iPod in November 2001, it did not file  
a provisional patent application until July 2002, and a full  
application was filed only in October that year.
In the meantime, Microsoft submitted an application in May 2002 to  
patent some key elements of music players, including song menu software.
Apple and Microsoft were two of several companies that developed  
portable players, but the iPod, with its sleek design and user- 
friendly controls, has dominated the market.
IPods make up three of every four portable music players bought in  
the US and account for almost one-third of Apple's sales. Piper  
Jaffray, a US analyst, believes Apple will sell 25 million iPods this  
year, bringing the total sold in the four years since its launch to  
35 million.
In July, the US Patent and Trademark Office rejected Apple's  
application, saying some ideas were similar to an earlier application  
filed by a Microsoft employee, John Platt.
The dispute, which emerged this week on the closely watched website,  
Appleinsider.com, could lead to Apple having to pay a licence fee for  
the technology of up to $10 a machine.
David Kaefer, Microsoft's director of intellectual property licensing  
and business development, said: "In general, our policy is to allow  
others to license our patents so they can use our innovative methods  
in their products."
Apple has signalled it will resist the move. A spokeswoman said Apple  
would continue to try to get its patent recognised. The company could  
take the case to the patent office's appeals board. "Apple invented  
and publicly released the iPod interface before the Microsoft patent  
application was filed," it said in a statement.
The battle comes as Microsoft is squaring up against another  
competitor, Google. Microsoft last month launched a lawsuit against  
the search-engine giant, accusing it of poaching a top executive to  
head a new research laboratory in China. The Redmond, Washington- 
based company also sued the executive, Kai-Fu Lee.
Apple Computer may be forced to pay royalties to Microsoft for every  
iPod it sells after it emerged that Bill Gates's software giant beat  
Steve Jobs' firm in the race to file a crucial patent on technology  
used in the popular portable music players. The total bill could run  
into hundreds of millions of dollars.
Although Apple introduced the iPod in November 2001, it did not file  
a provisional patent application until July 2002, and a full  
application was filed only in October that year.
In the meantime, Microsoft submitted an application in May 2002 to  
patent some key elements of music players, including song menu software.
Apple and Microsoft were two of several companies that developed  
portable players, but the iPod, with its sleek design and user- 
friendly controls, has dominated the market.
IPods make up three of every four portable music players bought in  
the US and account for almost one-third of Apple's sales. Piper  
Jaffray, a US analyst, believes Apple will sell 25 million iPods this  
year, bringing the total sold in the four years since its launch to  
35 million.
In July, the US Patent and Trademark Office rejected Apple's  
application, saying some ideas were similar to an earlier application  
filed by a Microsoft employee, John Platt.
The dispute, which emerged this week on the closely watched website,  
Appleinsider.com, could lead to Apple having to pay a licence fee for  
the technology of up to $10 a machine.
David Kaefer, Microsoft's director of intellectual property licensing  
and business development, said: "In general, our policy is to allow  
others to license our patents so they can use our innovative methods  
in their products."
Apple has signalled it will resist the move. A spokeswoman said Apple  
would continue to try to get its patent recognised. The company could  
take the case to the patent office's appeals board. "Apple invented  
and publicly released the iPod interface before the Microsoft patent  
application was filed," it said in a statement.
The battle comes as Microsoft is squaring up against another  
competitor, Google. Microsoft last month launched a lawsuit against  
the search-engine giant, accusing it of poaching a top executive to  
head a new research laboratory in China. The Redmond, Washington- 
based company also sued the executive, Kai-Fu Lee.
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