Today, the U.S. International Trade Commission announced that it will review a judge’s finding that Apple infringed on a patent owned by Google’s recent acquired Motorola Mobility subsidiary. The patent related to noise reduction in 3G cell phone signals. The consequence is that the United States government could ban the import of all Apple products – to include the iPhone and iPad – that use the specific 3G technology protected by the patent. The judge found that three other patents were not infringed upon.
The iPhone accounts for nearly 60 percent of Apple’s revenue. The iPad brings in roughly 20 percent. At first take, this seems like a massive threat to Apple. However, Apple is appealing the judge’s finding. Until all appeals are exhausted, Apple can keep the import ban on hold.
Moreover, Apple is probably only a few months away from rolling out a pure 4G iPhone that might not use the 3G technology covered by the patent in question. The newest iPad is a 4G device that has 3G backup. It is conceivable that a minor tweak could remedy the transgression.
The takeaway is this: the time the appeal process takes will likely afford Apple the ability to roll out non-infringing products (assuming the judge’s finding is upheld). By the time the ban can be enforced, Apple will likely not be selling 3G products any longer. Damages awarded to Motorola Mobility — if any — should be easily absorbed by Apple. (And, the attorneys keep themselves employed.)
(Source: Forbes)