2017-01-27
The widely popular electronic brand, Apple, was introduced to the world in 1976. The brand initiated by developing and selling personal computers under the name, Apple Computers Inc. However, in 2007, the company was renamed to Apple Inc. to reflect its shift towards consumer electronic products. Since its inception, the brand has been involved in creating several electronic devices and software including phones, tablets, music pods, operating systems, watches, etc. Being one of the world’s largest information technology companies, Apple is continuously involved in innovation and research.
Approach Towards Patents
With a high level of brand loyalty, goodwill and continuous inventions, there is no doubt that patents play a vital role in protecting the firm’s inventions. Apple is known to have several patents, including utility and design patents for its inventions. The brand also has the uniqueness of having products that are not compatible with goods of other brands. For example, if you have an Apple MacBook, you get a charger specifically built for that. These unique factors make it vital for the firm to invest in patents.
Apple is known to have a defensive strategy towards patent. This has been clear since the release of the iPhone. According to an article in the New York Times , while Apple had been adept at filing patents when it came to the new iPhone, the then CEO Steve Jobs had a simple, decisive answer ‘we are going to patent it all’. Hence, anything that could be patented is patented by Apple. And it was patented in as many different ways as possible. For example, when inventing a new version of iPhone, not only the unique operating feature is patented but also its design. This aggressive attitude towards patents provided protection from rivals and also gave them a defensive edge in lawsuits.
Patent Litigations – General Conflict or Strategy
It is natural for a company like Apple to face competition from rivals in a tech-driven era. This rivalry can be seen in both the marketplace and the courtroom. As an example, Apple and Samsung are often embroiled in conflict. Apple took on Samsung in patent litigation on many fronts to see if the company could be stopped from eating its market share. Much has been written about their patent disputes. Neither company has successfully thrown the other out of the market altogether by means of patent litigation. So what could be the goal behind the litigation strategy?
Patent litigation often ends as the result of a settlement. The ultimate goal is to force the competition to alter details of the product in some markets, and not push the competition out of the market but to make them pay by increasing production costs. All of this is done to maintain market dominance, effective market entrance or increase their share in the market.
Recently, Apple has chosen not to file patent applications for all of its inventions and has instead kept them confidential. This can create more enthusiasm amongst its fans, and reduce competition. But the change also raises a question - has Apple’s aggressive patent strategy begun losing steam and is that reflection of company issues or just a tactic? For now, it just seems a shift in trend that the public is not able to fully anticipate.
