Copy-right or patently unfair?

The patent may have been a British invention but today it is very much an American institution.

Who are you going to be cheering on as the smartphone war rages?

Photo credit: eyelk.com

Our patriot friends have a long history of taking British innovations and generating their own exaggerated Americanised versions – as has been the case with rugby and, more recently, world dominance. Patents are no exception to this rule and, alongside trademarking and copyright law, have tied neatly into their particular brand of freedom – where freedom can often mean restriction and limitations. That is not to say that patents do not exist elsewhere or that they are pursued less enthusiastically in other countries; but the US started our modern obsession with them, redefining our approach to intellectual property in the process.

The trend in patenting has also resulted in a fair amount of criticism, having allowed drug companies to price the most vulnerable out of the market. But now, the explosion of new technology and a highly competitive tech industry is about to draw the debate much more firmly into the average human consciousness. In the US, 63% per cent of the population own and use smartphones. In the UK, that figure stands at 50%. For just over half of those, their daily phone-unlocking ritual might be about to change. Have I got your attention now?

Good.

So what are patents for? Well, nine times out of ten it’s enough to secure you a deal on Dragon’s Den (unless you’re that chap who invented the rotating washing line). But, if you work for Apple’s legal team, it’s an excellent tool of one-upmanship. Recently, the most high profile case involved Apple versus Android, the brainchild of the ‘Open Handset Alliance’. The Open Handset Alliance counts Google, HTC, Intel, LG, Motorola, Samsung, T-Mobile, Sony Ericsson, Vodafone and Toshiba among its members. Although once upon a time Apple was considered the ‘underdog’, its competitors have now seen fit to assemble an army of industry giants to bring it down. Indeed, Steve Jobs’ final orders to his legal department and executive team were to ‘kill Android’. Having neutralised both Microsoft and RIM (for the time being at least), it would seem Apple still has its biggest battle to come. It’s weapon of choice? Patents.

The (rather unattractive) Open Handset Alliance Logo

Apple traded the first blows with the consortium last week regarding its ‘slide to unlock patent’, winning its case against Motorola. Motorola tried to downplay the defeat, claiming it has already developed a workaround. Buoyed by its victory however, Apple has since lodged a formal complaint with the European Commission against Motorola, claiming that its patents are in breach of the Commission and wholly unfair. As it stands, Motorola has thousands of patents that are essential to cellular technologies such as 3G and it currently charges a royalty rate of 2.25% on the sale price of the whole device rather than just the component. Google, who are in the process of buying Motorola, have said it intends to maintain this approach.

Apple vs Motorola. Who really owns slide-to-unlock?

Photo credit: lazytechguys.com

Nonetheless, Apple were granted a further 19 patents last week, which included the ‘Airplane’ mode setting on iPhones, its interactive headphones which can be used for beginning and ending calls, and the wonderfully named No. D654,072, which concerns the design of their slim ultra-book, the Macbook Air. CEO Cook was recently quoted as saying, “You’ll see the industry at large trying to copy it in some way, but they’ll find that it is not so easy”. Apple score again.

It would seem that Apple is very much the Manchester United of the patent world, with the decision usually going its way. For example, attempts by HTC and Motorola to block Apple’s products for breaching its patents have both been overturned in recent years. But Apple’s luck might be about to run out. According to Android and Me, the Android’s notification bar patent nears a possible approval and it could spell trouble for Apple’s iOS 5, presumably including the rumoured iPhone 5 that will support the new mobile operating system. Google is ready to protect its popular and powerful operating system and if it can secure the new patents, especially the drop-down notification bar, it looks like the wheel of fortune will change in the search engine’s favour.

The Macbook Air, or, as it’s more infamously known in tech circles, the D654072 design patent.

Photo credit: applenewsdaily.posterous.com

So what does this all mean for us, the consumer? Well, we can continue to expect the expensive infighting to continue, with the price of the product reflecting the amount they are having to spend in legal fees. But there’s also the genuine chance that the rising patent trend will encourage innovation, just as in the case of Motorola and their slide-to-unlock workaround. Android might force Apple to redesign their operating system and replace it with something even better. And it’s not as if Apple will always be the sole manufacturers of ultrabooks – but it will require a great deal of ingenuity by its rivals to overcome its patent. Thankfully, working within limits inspires ingenious solutions. And for that, we should be grateful.

God bless America.