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Linux and Open Source

Steven J. Vaughan-Nichols & Paula Rooney

ITC may help Apple and Microsoft force Google to negotiate

By | October 7, 2010, 12:38am PDT

Summary: Google is in a corner. How do you suggest they get out of it?

One of the less-remarked aspects of suits filed by Apple and Microsoft against Google over Android is they were also filed with the U.S. International Trade Commission.

While the court dockets are jammed, so any case on the merits of patent claims might take years to come to trial, Florian Mueller of FOSSPatents has done some research and thinks a binding ITC decision could come in just 18 months.

Google could be dead before a court can hear its claims.

The reason for this is that the Android is imported. Like nearly all phones in the U.S. market, it’s made in China. Thus it must conform to the rules of the ITC before coming to this market.

As Mueller notes:

The USITC makes determinations in investigations involving unfair practices in import trade, mainly involving allegations of infringement of U.S. patents and trademarks by imported goods. If it finds a violation of the law, the USITC may order the exclusion of the imported product from the United States.

The emphasis is mine. The ITC has the power to control imports, the Android is imported, thus the ITC can have jurisdiction over Android.

Here is where things get dicey. Since the ITC is not really a court, let alone a patent court, I doubt it has power to rule on whether the Apple or Microsoft patents are valid. Since they exist, the ITC might decide it has no choice but to keep products containing them from being imported.

In this case the patent court would be Google’s avenue of appeal. The Android could be a dead letter between an ITC decision and the time when appeals on a patent case are complete. In short, game over.

You will note that, so far, Google has only responded to Oracle’s patent suit. (Oracle can’t file with the ITC because imports are not at issue, only Java is.) It could be that Microsoft and Apple have found a fast-track to turning off Google’s bluster and forcing it to the table.

So what should advocates of open source think?

Ironically, Google’s own actions have made rooting for it seem positively unAmerican.

The beneficiaries of the Android platform, so far, are Chinese OEMs and the Bell companies. The Chinese like Android because it ends Intellectual Property (IP) royalty payments to American companies. The Bells like it because they can twist Android into a closed system.

Both these outcomes are bad for American users. I am on record as hating AT&T crapware. All an end to IP payments does to Chinese manufacturers is increase their profits, while raising America’s trade deficit.

In the current environment even Google loses. Carriers are under no requirement to support Google’s services using Android. AT&T Galaxy phones come with browsers that default to Yahoo.

This does not make me sympathetic to either Apple or Microsoft. Apple is claiming here that they control all multitouch devices for the next decade. Microsoft is claiming to control all sync technology between a mobile device and the Web. (Haven’t they heard the good news about Funambol?)

Still, in a world where America’s patents and copyrights are increasingly our only value-add in the tech world, Google is in a corner. It doesn’t just have legal troubles, it has political ones.

How do you suggest they get out of it?

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Topics

Dana Blankenhorn has been a business journalist for 30 years, a tech freelancer since 1983.

Disclosure

Dana Blankenhorn

Dana Blankenhorn has been a journalist, writer and part-time futurist for over 30 years.

At the present moment I run only a personal blog in addition to my ZDNet open source blog.

DanaBlankenhorn.Com has the subtitle The War Against Oil. In the past I have used it to write about political history, e-commerce, personal matters, some ideas related to open source, and The World of Always On, which is the idea of using sensors, motes and RFID to turn WiFi links into platforms for applications which live in the air.

My IRA account at Schwab holds a few tech shares, most notably some Intel and Applied Materials, but there are no open source companies in it. I don’t even own any CBS stock.

Biography

Dana Blankenhorn

Dana Blankenhorn has been a business journalist for nearly 25 years and has covered the online world professionally since 1985. He founded the Interactive Age Daily for CMP Media, and has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement, and dozens of other publications over the years.

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RE: ITC may help Apple and Microsoft force Google to negotiate
AirmanChairman Updated - 10th Oct 2010
@symbolset glad you noticed that the target of Microsoft's litigation is the inventor of the mobile phone and by writ thereof the owner of several crucial patents and IP relating to cellular technology.

When two parties with extensive patent portfolios and deep litigation-funding pockets go to war in court, it is usually because cross-licensing negotiations have broken down. In the case of these two protagonists, it is pretty clear that the co-respondent (the factor triggering the breakdown) is Android and the "free lunch" that it appears to suggest to handset vendors that find themselves down on their luck with the advent of the Apple iPhone and the attendant disruption of the market since 2007.

While those who say software should not be patentable may have a pseudo-ethical point, the fact still remains that this is not the case in reality, and Android may have run rough-shod over quite a few software AND hardware IP properties belonging to those who do not have its best interests at heart (or at the very least, no interest in promoting it as a competitor).

There are no permanent friends or enemies in this business, as Microsoft well understands. The point they are forcibly making to Motorola and all other Android-adopting handset vendors is that there is no such thing as a free lunch, as my dear old mum used to say.
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Google should negotiate and make the appropriate licensing payments. They are not a true subscriber to Open Source. They have taken over open source products like linux and java and used them to their own advantage. But, they have not contributed back to the open source community as they are supposed to.

At the same time, they have appropriated other company's technologies in the same way as they have appropriated personal information of their users and other sources. They have run fast and furious taking everything they can and it is time they are brought to heel.

Google would be a much less profitable and powerful company if they were forced to pay for all the information and IP that they use. In the mean time, they have become one of the most dangerous companies in the world because of the stock of personal data they have on their servers. Let Google pay!
How about they just quit exporting jobs overseas & start letting Americans create their own version of Android? Open source has succeeded outside the US, I realize, because the poorer countries have far more to gain in getting onto the Web with things that don't cost out the wazoo like MS & Apple products, but esp. with the recession, more & more Americans are warming up to Open Source, helped by Android phones & Ubuntu (& other easy to use Linux distros). We can no longer afford the big guys' pricey products, nor can our companies, esp. as taxes are increasingly levied on businesses & higher-end earners. There has never been a better time for Google to let US programmers patent their software in the US, where the Communist control freaks aren't quite in control here just yet (but that's another rant along the lines of my not seeing elections in 2012 due to a climate that lets our president do as he wishes without restrictions, even when it's not legal).
Google: You're supposed to be an American company. You make a lot of your money here. Leave the other countries with their version & let Americans go them one better, with patents in the US. When what we have is clearly better, you won't have these concerns. You'll back the expensive guys into a corner where their only market is the elites of the world.
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@bamyclouse@...

You Tea Party crazies or retards would have so much more validity and a true sense of reform if your message was not convoluted in extremist "right-wing" can't think for myself propaganda that just sounds like a two year old crying over spilled milk . . . then you all wonder why no one takes you seriously . . .
but then again to socialists marxist he probably doesnt sound extreme right now...
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@Johnny Vegas
Health care reform has been attempted by Republican and Democratic Presidents for like a hundred years and he ran on it so he kept his promise and did what prior administrations have failed to do for a hundred years now. So that might seem extreme but in a good way.

He's so far been fairly middle of the road as far as I can tell. The Liberals and Conservatives are all up in arms about him. Basically the Liberals think he's too conservative and the Conservatives thing he's too liberal so to my mind that means he's middle of the road.

Name these extreme policies and or words he has used please.

Pagan jim
Not a well researched or written article, I have to say...

Which part of the Android OS is "unfair practice"?
- Everyone (except Moto, and even they seem to relent) who builds Android phones and exports them to US is already paying M$ the due royalties for ludicrous software patents
- There is nothing holding Microsoft back in building & publishing a competitive phone OS, it's their own fault that they're late to the party
- I am not sure about Apple's part in this - but even they settled with HTC at least (maybe with others too?) in their patent dispute

I can see how they may be infringing SW patents - in the same way that almost every piece of software does, one way or another. What I cannot see, however, is how this is unfair practice.

I am also not sure what Microsoft would try to achieve with this - IF the ITC were to take their side (big IF), it would be the manufacturers that are already building Android phones that would suffer - the very same companies that are supposed to partner with Microsoft for building WP7 phones. Why are they trying to piss off their partners?
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Fact check...
ietom 7th Oct 2010
Did you research this article at all???

Apple filed ITC complaints against HTC and Nokia, in HTC case, all handsets concerned ran either Android OS or Windows Mobile 6/6.5, nothing specific targeting Google.

this article very misleading
@ietom .. and that's because going after Google would have meant a decade long patent case in court... too much time to have the disired effect of slowing androids roll and removing the android is free argument.. it's not free.. when you use android you have to pay people all over the map for the IP it contains... targeting a foreign manufacture (HTC) through the iTC means a resolution in about a year and not having to actually validate and defend the patent itself... only prove that it has been violated. this way they can strong arm HTC and others into paying royalties, spread FUD about android etc.. Microsoft same thing.. android is selling well.. and a) they get a piece of that pie and b) all this licensing means that android is actually not free, so android doesn't have that we're free argument anymore... in order to use android you have to pay licensing to all kinds of people and this is good for WinPhone7..
@doctorSpoc

For Starters, Apple ITC complaints refer directly to HTC violating Apple IP (UI Elements in HTC Sense, Managing Power on Device, Object-Oriented Graphic System used in HTC Sense), on both Windows Mobile 6.5 and Android!!!!

If what your saying is true, Apple be filing complaints against Dell, LG, Samsung, Sony Ericsson, Motorola, Lenovo, ASUSTeK ..... And many more

BTW Microsoft suing Motorola will have little effect on the success/failure of Windows Phone 7

ZDNet please research articles before publishing!!!
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DoctorSpoc
DanaBlankenhorn 8th Oct 2010
@doctorSpoc Thanks. You've got the right explanation. The complaints name HTC and Motorola. Both are, in fact, aimed at Google and Android.

Although the critics have a point as well. Motorola or HTC could seek to negotiate out of this on their own, either making changes to their phones or paying Microsoft and/or Apple.

The game by Microsoft and Apple is to force those who want to use Android to pay more in IP charges than they presently pay to other players, eliminating the Android cost advantage.

Sorry this wasn't more clear. Blame the time difference.
They should stop using technology that uses other peoples patents, unless they're paying licensing to use those patents
@mgrubb@... the ip that they are paying for is bs. Software patents should not exist. Especially the broad spectrum bs filed by Apple and Microsoft.
This author posts a lot of pro corporatist against the small guy type articles. Google is small by no means but Google does seem to take a stronger stand on issues that affect the small guy than either Microsoft or Apple. I'd take Google any day.
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For all you guys crying about jobs going to China or made in China this or that but hate government . . . good luck with that. Your love for corporate good will is going to be the downfall of this country. Corporations hate regulations for a reason because they do not want rules. That my dear sir is the real reason our country is in the tank.
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Check the author's title . . .
eprisencc 7th Oct 2010
Business journalist for 30 years, a tech freelancer since 1983. Right before Reagan's reelection and all this deregulation nonsense.
@eprisencc You mean I'm a Reagan Republican? Who knew.
This is some bs. Android is better and bigger and companies with their closed crappy platform (ios sucks and is controlled by Steve jobs) and (wp7 is a step back from WM). Also the companies that are profiting are not Chinese (unless hey are the physical oem but then again everything is made in China so should we stop importing all goods because China is making money?) Since Motorola is not Chinese and is the most popular maker of android handsets in the USA.
IMHO: All it requires of Google is a quiet chat with Commissioner Karel De Gucht, Dr. Surin Pitsuwan, Deputy Head Vladimir Tkachenko and the guy in charge at UNASUR. It's mainly an SaaS World now-a-day's and in the A&M-version of it, nothing much is left to the rest of us. So, this thing can get into a real stink politically, right up to the eye-balls of both Steve's.

//S
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This article is baloney
Mah 9th Oct 2010
Google is an American Company. Android is developed primarily in America. Android code is in America. Google is not importing Android.The only thing that is being imported is the mobile phone hardware. To bypass any absurd decision a kangaroo court like ITC may come to, all it would take is to include a bootstrap software (which ITC can't block) in the phone hardware, and then have users bootstrap the all American Android software into it in the good old US of A using 3G.
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Moto has patents too
symbolset 9th Oct 2010
We haven't heard their response to the suit yet, but Moto has tens of thousands of patents in the field of cellular technology. Motorola invented the cellular phone.

If Microsoft wants to play duelling injunctions with the ITC, they're going to find themselves on the short end of this one.
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@symbolset glad you noticed that the target of Microsoft's litigation is the inventor of the mobile phone and by writ thereof the owner of several crucial patents and IP relating to cellular technology.

When two parties with extensive patent portfolios and deep litigation-funding pockets go to war in court, it is usually because cross-licensing negotiations have broken down. In the case of these two protagonists, it is pretty clear that the co-respondent (the factor triggering the breakdown) is Android and the "free lunch" that it appears to suggest to handset vendors that find themselves down on their luck with the advent of the Apple iPhone and the attendant disruption of the market since 2007.

While those who say software should not be patentable may have a pseudo-ethical point, the fact still remains that this is not the case in reality, and Android may have run rough-shod over quite a few software AND hardware IP properties belonging to those who do not have its best interests at heart (or at the very least, no interest in promoting it as a competitor).

There are no permanent friends or enemies in this business, as Microsoft well understands. The point they are forcibly making to Motorola and all other Android-adopting handset vendors is that there is no such thing as a free lunch, as my dear old mum used to say.
It's all about personal preference at the end of the day.

None of the parties in this litigation is faultless or blameless, but I can't just get over the treacherous way that Google at one moment were Apple partners with their CEO sitting on Apple's board of directors (to the extent that the partnership was being investigated by the FTC/ITC for anti-competitiveness), then the next minute diving headlong into all Apple's markets with competing products and withholding their best software from the Apple mobile platform.

At the same time, they carved an end-run around Sun Microsystems by avoiding licensing the Java VM through Dalvik (and just by some "coincidence" Sun Microsystems dissolved as an entity after this perfidious act), triggering fury and litigation from Oracle.

I like (nay LOVE) my Google products, even though I realize I am paying nothing for them and by consequence I am likely to be the commodity that Google sells to its real customers, Corporate entities and quite possibly the Governments of the (Western) world.

But the doubts are starting to stream in relentlessly where previously they were just creeping.

I tend to side with the CEO who pronounced sarcastically in recent times '"Don't be Evil" is a load of BS'.

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