Apple’s Ongoing Patent Battle May Pose Risks For Its Shareholders

According to Bloomberg, Apple’s ongoing patent war with the manufacturers of Android-based devices has mixed results. Bloomberg wrote that Apple could cut its losses and earn 10$ per Android-based device sold if the company would reach settlements with its competitors.

Also  Apple’s agressive legal actions seeking to block rivals from using company’s intellectual property may prove less profitable for shareholders than granting licences for technologies. Intellectual property advisor Kevin Rivette said:

“A scorched-earth strategy is bad news because it doesn’t optimize the value of their patents -- because people will get around them”.

Rivette said that Apple could drop its more than twenty claims against Samsung Electronics in exchange for its consent to hold off implementing Apple technology for about 1 year. Also he said that Tim Cook could try to receive price breaks or agreements that would provide it greater access to components manufactured by Samsung.

Other industry experts hold a different view, saying that Apple has yet to address any serious threat from its rivals in the intellectual property sphere and in the meantime they are slowed by Apple’s active legal actions. Chairman of the MDB Capital Group Christopher Marlett said:

“Apple has the patents, the money and the expertise to go to war”.

“I just don’t see why Apple would seek détente, since they’re the clear leader. Until they’re hit with an injunction by Google or Samsung, they don’t need to get serious about licensing”.

But even those who think that Apple’s course remains viable for now said that sooner or later the company will have to change its strategy and achieve settlements.