When Apple Inc. announced its awesomely positive earnings report earlier in the week, the conversation with press and analysts turned to the iPhone and the fact that there are so many competing devices in the market right now. That’s when Apple’s Tim Cook said he liked competition but warned that there would be a swift and strong legal response if anyone “rips off” Apple’s IP. And that’s when the trouble began.
When pressed, Cook said his comments were merely general statements, but Palm Inc. certainly didn’t take it that way, nor did the journalists and bloggers across the land fanning the flames of a competitive, possibly litigious fire — two days later.
The comments: “We’re watching the landscape, and we like competition, as long as they don't rip off our IP,” Cook said. “And we’ll go after anyone that does.”
He added: “Competition is good, it makes us all better. And we’re ready to suit up and go against anyone. However, we won't stand for having our IP ripped off and we will use whatever weapons we have at our disposal if that happens.”
And sure, that’s some posturing.
That’s when an analyst asked if he was talking about Palm’s new Pre device, which uses a multi-touch approach to its touchscreen interface that is very similar to the iPhone. Cook said, “I’m making a general statement,” and reiterated essentially that Apple would sue the pants off anyone that infringed on its patents — and rightly so.
So ... is there a story there? Palm would like there to be, apparently. A Palm spokesperson made a comment regarding Cook’s remarks in the blog All Things Digital: “Palm has a long history of innovation that is reflected in our products and robust patent portfolio, and we have long been recognized for our fundamental patents in the mobile space. If faced with legal action, we are confident that we have the tools necessary to defend ourselves.”
Is Palm telling Apple to “bring it on, sucka?” We don’t know for sure, but that hasn’t stopped every major technology news outlet and some mainstream sites to pick up the story of the coming “smartphone feud” on Friday. Who can blame them: Everyone likes a good corporate flame war.
But one thing is certain: Palm must be enjoying the buzz, as the attention is just what it needs for the new Palm Pre and its hopes to turn around its business to succeed. Touted as a very real “iPhone killer?” We think the company will take that kind of analysis.
For its part, Apple sees its competitive advantage to lie in its software rather than form factor details, which could provide a clue as to Cook’s IP fears. “Software is the key ingredient, and we are years ahead,” said Cook. “The App Store has a half-billion downloads.” And later: “We have a software platform business. That’s fundamentally different from people approaching the market from a hardware point of view.”
Could the application developer stores in production for Android, BlackBerry and Palm be at issue eventually? Is it irresponsible to speculate? Is it a slow news day? Should the rhetorical question be struck from this journalist’s arsenal?
You be the judge.
