[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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