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Apple?s legal battle with Samsung is hurting mobile users

Score one for Apple in its ongoing patent infringement battle involving Samsung, with the Korean handset manufacturer agreeing to keep its Galaxy Tab 10.1 out of Australia until the legal issues are resolved.

With Apple successfully blocking Galaxy Tab imports in Australia and Google purchasing over 1,000 IBM patents, it is clear that the legal side of mobile continues to gain in importance for companies. Not only that, but the Samsung news shows that these legal maneuverings are beginning to have an impact on consumers.

?Apple block Samsung imports is a little unique in the sense that this stuff usually ends up getting settled with money,? said Michael Morgan, senior analyst for mobile devices at ABI Research, New York.

?It?s also disconcerting because if companies are forced to stop shipping to specific regions, this is directly hurting consumers,? he said.

?All of this can stop the growth in mobile in terms of innovation.?

Tablet shipments stopped
Apple has sued Samsung over patent infringement related to smartphones and tablets in several countries, including the United States, with Samsung countersuing.

The court agreement recently reached by Apple and Samsung in Australia calls for Samsung to stop sales and advertising for the Galaxy Tab 10.1 until the lawsuit is resolved or the court says sales can continue.

Apple has agreed to pay Samsung an unspecified amount if it loses the lawsuit.

Google?s patent play
Additionally, Google?s acquisition of over 1,000 patents from IBM is another example of just how important technology patents are right now.

?Patents are going to become more and more valuable going forward, which speaks to how competitive this space has become ? companies are using every tool in their arsenals,? Mr. Morgan said.

Building a patent portfolio is a new strategy for Google.

?Now that Google is big and making other people nervous, they are going to have accept that [IP infringement suits] are a reality of doing business today ? the IBM deal is an indication that they are,? he said.

?Before Google was trying to keep a hands-off approach and saying that all this patent stuff is hindering innovation.?

The IBM patents involved in the purchase relate to the fabrication and architecture of memory and microprocessing chips as well as computer architecture including servers and routers.

It is not immediately clear how the IBM patents will help Google in the mobile space.

?From the initial reports of what the acquisition seems to entail, I don?t see a fit,? Mr. Morgan said. ?But, it?s all in how they spin it.?

Google is trying to not only protect itself but also its entire ecosystem since recent legal activity extends to key parts of the Android ecosystem such as app developers and handset manufacturers.

However, Google may be willing to go only so far to protect these companies.

?I don?t expect to see Google jump in and support handset manufacturers in their legal run-ins,? Mr. Morgan said. ?It is buying up patents so no one even tries to sue these companies or, if they do try, Google has some bartering stuff to go to.?

Google may be facing a tougher time building up its patent portfolio than it initially expected.
The company recently lost a bid to acquire Nortel?s patent, with the winning bid of $4.5 billion going to a group of companies that included Apple and Microsoft.

Google is also reportedly in talks to buy InterDigital Inc., which owns and licenses thousands of patents related to wireless technologies. 

?The value of intellectual property in mobile at the current moment is rising quickly and reaching a bubble,? Mr. Morgan said.

Final Take
Chantal Tode is associate editor on Mobile Marketer