Greg's Bite: is Apple a patent bully?
TweetFollow Us on Twitter

Greg's Bite: is Apple a patent bully?

By Greg Mills

Recent interviews with Google executives have pandered to the notion that Apple is doing something inherently evil asserting patent rights. Nothing could be further from the truth. Without the ability to gain an advantage over competitors in making a profit from new ideas, innovation will not be sustainable.  

Rather than being a "patent bully," Apple has led the flock in the electronics segment for so long, somehow the followers have come to think stealing Apple's best ideas are in the public interest. That is nuts. It is in the interest of the companies that waste billions of dollars on R&D or have management that can't see the future when they hold it in their hands.  

Samsung struck a similar note when they said that Apple wanted to limit innovation. The opposite is actually true. Innovation costs money -- lots of money -- and there are ideas that copycats like Samsung don't have the right to steal. 

Research and development is an interesting thing from a corporate management angle. Spend too little and your competition will beat you to the next big thing and freeze you out. Spend too much foolishly and you will see your market share and market cap decline. The one thing Apple has is focus. Once they decide to do something, stand back.

The advantage of being able to choose the product ideas that have the most merit early saves billions of dollars in wasted R&D funds. Steve Jobs said that choosing what not to do was more important that choosing what to do. Ideas are cheap; brilliant ideas are more costly, but focusing on only a few good ideas is what makes Apple thrive.

Companies that are known for innovation have policies that encourage thinking outside the box. I have been to 3M Labs a number of times to discuss some of my ideas. They have a policy of allowing R&D employees time each week to play with interesting ideas that might lead to new products. Post It Notes are one such idea that took off and make 3M a lot of money. Monetizing good ideas is something 3M excels at. There is a quotation from the founder of 3M above the door leading to the labs that reads "buy it by the inch and sell it by the mile."  

Simply having good ideas isn't enough; you also have to choose the ideas that fit the company and have the potential to make money. Back when copy machines were the big thing, Xerox had money and loads of great ideas that never found a pathway to development within the company. Steve Jobs had what the leaders of Xerox didn't have: vision. The rest is history.

I read an article on "fixing Microsoft." Frankly, any plan to fix Microsoft that doesn't start with firing Balmer is doomed to failure. Missing the boat on the next big thing is now culturally engrained at Microsoft. The "it wasn't invented here so it must not be a good idea" syndrome has put Microsoft several years behind in all the categories they should have been leading in. PC operating systems, mobile OS, touch screen tablets, smartphones and cloud computing technology are all being done better and sooner by Apple.

The punishment for not innovating in the electronics sector is brutal. Microsoft, once the most valuable company in the world, is now worth less that Apple's iPhone business alone. Microsoft has lost half its market cap since Gates retired.  Microsoft is now in the position where others must fail to allow them to succeed.  If Android fails, Windows Mobile might be the only viable alternative. Bill Gates once stated that "the company that fails to obsolete its own product is doomed to see its competition do it." The slide in market share for the PC, and the rise of Apple's OS and iOS, is a case in point.  

Samsung and Google have made their bed and now they must sleep in it. While Apple still buys tons of parts from Samsung, the patent infringement situation may well be behind a shift to alternative suppliers. Apple's anger regarding Android has soured the situation between Google and Apple for the long term. Maps is only the beginning of that story. Even Google knows Siri is a shot across the bow of the search business that makes the money Google spends on everything else.  

Apple's advantage is that they can hook Siri up to use any search engine they want and users will go along. Just as Apple has gone their own way with Maps, the search engine business is potentially a giant money maker.  

Having gotten into advertising, we will see Apple leverage that into its products and services. Microsoft has spent a bundle on Bing and still spends money trying to get it working from the standpoint of making money. Yahoo is also floundering.  Hopefully, their new CEO can turn Yahoo around.  

Sprint is another company that has floundered by making bad decisions. Selling the iPhone has been both a boon and blunder for them. While they are capturing new customers with an aggressive unlimited data plan, the ClearWire, Nextel and 4G cellular network mistakes have made Sprint stock virtual junk.

I have speculated that if Apple spent only the profit on the iPhone sold to Sprint to simply buy the company, the stock would double over night in value. If Apple owned a major cellular network, they could push the iCloud connection for everything they sell.

Some consolidation is likely with Apple growing and key competitors and potential takeover targets out there. So far, most of Apple's acquisitions have been small potatoes. That may change.  

That is Greg's Bite.

 
AAPL
$102.99
Apple Inc.
+0.52
MSFT
$44.38
Microsoft Corpora
-0.50
GOOG
$532.71
Google Inc.
+6.17

MacTech Search:
Community Search:

Software Updates via MacUpdate

OmniOutliner 4.1.3 - Organize your ideas...
OmniOutliner is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
BBEdit 11.0 - Powerful text and HTML edi...
BBEdit is the leading professional HTML and text editor for the Mac. Specifically crafted in response to the needs of Web authors and software developers, this award-winning product provides a... Read more
Apple Security Update 2014-005 - For OS...
Apple Security Update is recommended for all users and improves the security of Mac OS X. For information on the security content of this update, please visit this website: http://support.apple.com/... Read more
EyeTV 3.6.6 - Watch and record TV on you...
EyeTV brings a rich TV experience to your Mac. Watch live TV on your Mac. Pause, rewind, and record whenever you want. EyeTV gives you powerful control over what you watch and how you watch it. Put... Read more
RapidWeaver 6.0 - Create template-based...
RapidWeaver is a next-generation Web design application to help you easily create professional-looking Web sites in minutes. No knowledge of complex code is required, RapidWeaver will take care of... Read more
NTFS 12.0.39 - Provides full read and wr...
Paragon NTFS breaks down the barriers between Windows and OS X. Paragon NTFS effectively solves the communication problems between the Mac system and NTFS, providing full read and write access to... Read more
RestoreMeNot 2.0.3 - Disable window rest...
RestoreMeNot provides a simple way to disable the window restoration for individual applications so that you can fine-tune this behavior to suit your needs. Please note that RestoreMeNot is designed... Read more
Macgo Blu-ray Player 2.10.9.1750 - Blu-r...
Macgo Mac Blu-ray Player can bring you the most unforgettable Blu-ray experience on your Mac. Overview Macgo Mac Blu-ray Player can satisfy just about every need you could possibly have in a Blu-ray... Read more
Apple iOS 8.1 - The latest version of Ap...
The latest version of iOS can be downloaded through iTunes. Apple iOS 8 comes with big updates to apps you use every day, like Messages and Photos. A whole new way to share content with your family.... Read more
TechTool Pro 7.0.5 - Hard drive and syst...
TechTool Pro is now 7, and this is the most advanced version of the acclaimed Macintosh troubleshooting utility created in its 20-year history. Micromat has redeveloped TechTool Pro 7 to be fully 64... Read more

Latest Forum Discussions

See All

TinType by Hipstamatic (Photography)
TinType by Hipstamatic 1.0 Device: iOS iPhone Category: Photography Price: $.99, Version: 1.0 (iTunes) Description: Create hauntingly beautiful, soul capturing portraits with TinType by Hipstamatic. Inspired by daguerreotypes,... | Read more »
The Latest Update for Heroes of Dragon A...
The Latest Update for Heroes of Dragon Age Introduces Daily PvE Challenges Posted by Ellis Spice on October 22nd, 2014 [ permalink ] | Read more »
A New Trailer has Been Revealed for Epic...
A New Trailer has Been Revealed for Epic of Kings Posted by Jessica Fisher on October 22nd, 2014 [ permalink ] Dead Mage Inc. has released a new, action-packed trailer for the upcoming Epic of Kings. | Read more »
Find the Line Review
Find the Line Review By Campbell Bird on October 22nd, 2014 Our Rating: :: INSLIDE THE LINESUniversal App - Designed for iPhone and iPad Tease out beautiful line drawings in this unique, free-to-play puzzle game.   | Read more »
The Silent Age Episode 2 Review
The Silent Age Episode 2 Review By Jennifer Allen on October 22nd, 2014 Our Rating: :: ROUNDING THINGS OFF NICELYUniversal App - Designed for iPhone and iPad Rounding off a great point and click adventure comes The Silent Age... | Read more »
Craft Your Own Mini-Games with Papercade
Craft Your Own Mini-Games with Papercade Posted by Jessica Fisher on October 22nd, 2014 [ permalink ] iPad Only App - Designed for the iPad Scrapbookers move over, Scrapgaming is the new thing. | Read more »
Reshape Review
Reshape Review By Jennifer Allen on October 22nd, 2014 Our Rating: :: SIMPLE SHAPESUniversal App - Designed for iPhone and iPad Match triangles together to form cubes in this fast-paced and twitchy game.   | Read more »
Miika (Games)
Miika 1.0.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.0 (iTunes) Description: Miika is a beautiful 3D puzzle game based on camera perspectives combined with the use of optical illusions. Miika challenges... | Read more »
Infuse Pro (Photography)
Infuse Pro 3.0 Device: iOS Universal Category: Photography Price: $9.99, Version: 3.0 (iTunes) Description: ** All-new version 3 includes fully licensed and certified DTS® and DTS-HD® audio! ** | Read more »
Swap Heroes (Games)
Swap Heroes 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: **Half price for a limited time only** Swap Heroes is a casual turn-based strategy adventure. Form a group of heroes and guide them... | Read more »

Price Scanner via MacPrices.net

Save with Best Buy’s College Student Deals
Take an additional $50 off all MacBooks and iMacs at Best Buy Online with their College Students Deals Savings, valid through November 1st. Anyone with a valid .EDU email address can take advantage... Read more
iPad Air 2 & iPad mini 3 Best Tablets Yet...
The new iPads turned out to be pretty much everything I’d been hoping for and more than I’d expected.”More” particularly in terms of a drinking-from-a-firehose choice of models and configurations,... Read more
Drafts 4 Reinvents iOS Productivity App
N Richland Hills, Texas based Agile Tortoise has announced the release of Drafts 4 for iPhone and iPad. Drafts is a quick capture note taking app with flexible output actions. Drafts 4 scales from... Read more
AT&T accepting preorders for new iPads fo...
AT&T Wireless is accepting preorders for the new iPad Air 2 and iPad mini 3, cellular models, for $100 off MSRP with a 2-year service agreement: - 16GB iPad Air 2 WiFi + Cellular: $529.99 - 64GB... Read more
Apple offering refurbished Mac Pros for up to...
The Apple Store is offering Apple Certified Refurbished 2013 Mac Pros for up to $600 off the cost of new models. An Apple one-year warranty is included with each Mac Pro, and shipping is free. The... Read more
Select MacBook Airs $100 off MSRP, free shipp...
B&H Photo has 2014 a couple of MacBook Airs on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only. They also include free copies of Parallels Desktop and LoJack for... Read more
13-inch 2.5GHz MacBook Pro on sale for $100 o...
B&H Photo has the 13″ 2.5GHz MacBook Pro on sale for $999.99 including free shipping plus NY sales tax only. Their price is $100 off MSRP. Read more
Strong iPhone, Mac And App Store Sales Drive...
Apple on Monday announced financial results for its fiscal 2014 fourth quarter ended September 27, 2014. The Company posted quarterly revenue of $42.1 billion and quarterly net profit of $8.5 billion... Read more
Apple Posts How-To For OS X Recovery
OS X 10.7 Lion and later include OS X Recovery. This feature includes all of the tools you need to reinstall OS X, repair your disk, and even restore from a Time Machine backup. OS X Recovery... Read more
Mac OS X Versions (Builds) Supported By Vario...
Apple Support has posted a handy resource explaining which Mac OS X versions (builds) originally shipped with or are available for your computer via retail discs, downloads, or Software Update. Apple... Read more

Jobs Board

Senior Event Manager, *Apple* Retail Market...
…This senior level position is responsible for leading and imagining the Apple Retail Team's global event strategy. Delivering an overarching brand story; in-store, Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
Project Manager / Business Analyst, WW *Appl...
…a senior project manager / business analyst to work within our Worldwide Apple Fulfillment Operations and the Business Process Re-engineering team. This role will work Read more
*Apple* Retail - Multiple Positions (US) - A...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
Position Opening at *Apple* - Apple (United...
…customers purchase our products, you're the one who helps them get more out of their new Apple technology. Your day in the Apple Store is filled with a range of Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.