Technology Patents: Why Everyone is Suing Everyone
Technology Patents: Why Everyone is Suing Everyone
2012-01-31
hey guys this is Austin and sting here
with a little bit of a rant video going
over something that thing has gotten way
ridiculous and that is patents and
lawsuits and all kinds of just craziness
as far as phones and tablet
manufacturers go now to start off with I
wanted to start with a little bit of a
story so bear with me here so earlier
this month I was at CES with my friend
Phil you guys probably know him as AI
cryptic and so what we were doing is we
were together and we were walking around
hitting all the different booths and you
know one was filming and one was like
doing a little demo and some of the
stuff was interesting like some phones
and tablets we're interesting some of it
wasn't but for the most part we were
getting footage of pretty much as much
as we could so if we thought hey this is
very you know whatever we could just you
know add the footage later it would all
be good so at one point we're in a booth
and we were looking at a tablet so Phil
he pulls out his camcorder and I start
giving a demo so I start swiping through
the home screen I think it's like an
Android 3.0 honeycomb tablet so swiping
through it looking at the apps and you
know just kind of just giving a general
overview of it and halfway through I'm
like wait a minute what's this called
so one kind of weird thing was there was
no plaque or anything about it so
usually for the most part for example
you know if it was like a Samsung Galaxy
Nexus or whatever would have like a
plaque saying the name you have some
kind of information it's got like 4G and
this and that you just kind of give you
a little bit of background information
but with this woman there was nothing it
was just the tablet and it didn't look
all that bad but it wasn't really
anything that spectacular
so about after a couple minutes Evgeny
I'm messaging down with a little bit of
rap walked up go hi can I help you I'm
like yeah well what's the name of this
tablet and the little guy looks at me
goes oh it's the hi pad so I just wanted
to tell that story just kind of say
there are two sides of this I think that
that's kind of ridiculous I think that
there's a pretty good chance that some
people may confuse the iPad with the hi
pad you know but on the other hand I do
think overall that a lot of this stuff
has gotten ridiculous one example of
this is what's going on between Apple
and Samsung so a little while back Apple
sued Samsung they sued back over all
kinds of things but one of the biggest
things the bet came out of all this was
Apple's lawsuit against the Samsung
Galaxy Tab 10.1 as you guys can see here
it does look fairly similar to the iPad
however I wouldn't say it's perhaps a
blatant ripoff but overall Apple
was definitely not very happy with this
so they sued is a big bunch of talking
and this and that but the end result was
that they actually got banned in Germany
so you know as far as the Samsung Galaxy
Tab nope you can't buy the 10.1 in
Germany at all it's banned now of course
this really is not acceptable all the
Samsung when you design a tablet or
phone it cost you millions millions of
dollars and you expect to be able to you
know sell it here and here and here and
except etc so what they did was they
create a different version of the
Samsung Galaxy Tab called the 10.1 in
now this is pretty much for all intents
and purposes the same as the 10.1 over
they tweaked the design some of the
complaints to Apple had as far as you
know like the look of it and whatnot
they tweaked the design perfectly fine
now it's on sale in Germany the thing is
with this kind of stuff though is that
that costs a lot of money to retool now
what you might think yes the same
tablets just got a little bit of a
different design that costs millions and
millions of dollars you know I do they
have to make new advertising and all
that kind of stuff but they have to
retool so you got to keep in mind that
you know all the cases and you know the
designs whatnot all that kinda stuff has
to be retool which is just
astronomically expensive so that was
really really a major expense for
Samsung they had to redesign even if it
was fairly minor they had to redesign
their tablet just to be able to have it
on sale of course it goes the other way
too
just this morning the European Union
launched an antitrust investigation
against Samsung for them suing all kinds
of other manufacturers over 3G patents
now of course there is 3G technology and
pretty much every single phone that you
buy today even 4G phones typically will
have some kind of 3G radio inside so
that can communicate with older networks
now Samsung definitely does hold a lot
of patents in this area however the main
issue there is that they daren't release
licensing them fairly or at least
they're supposedly not licensing them
fairly if you guys don't know what
licensing patents is all about for the
most part they can design something so
let's say I design a multi-touch screen
and that's mine I designed it and let's
say Apple says hey I want to use your
design well I can go sure you can use it
you can use my neck technology however I
designed it the only thing is you need
to pay me like 50 cents for every iPhone
and of course you know the terms a lot
kind of stuff can vary wildly but
licensing patents is very very common as
far as this goes there's a lot of gray
areas some patents that are out are a
little bit broad and
we have invented a new technology called
multi-touch and boy have we patented it
oh you know this just multi-touch on the
Samsung Focus flash and the year 2012 no
big deal
so just take for example Android yeah
I'm sure as most of you guys know it's a
free and open-source operating system so
today if I decide that I want to make a
phone I can go to the Android website I
can download Android and I can use it
freely on any phone tablet or pretty
much whatever else I want however it's
not quite that simple many Android
manufacturers today actually pay
royalties to Microsoft for the sale of
every single Android phone so the way
this works is there's some kind of
licensing agreement that there's some
patents that Microsoft owns that are in
Android and so to do it they pay for
anything from 5 to 15 dollars for every
Android phone sold now this is kind of
where it comes back to you guys now
whenever someone who signs a phone or a
tablet they pretty much you've got to
work out what's gonna cost what and etc
etc so for example they'll dedicate so
much money to the screen and they'll
dedicate to the processor to the memory
to you know someone designing the phone
so they're usually there's gonna be some
kind of designs to you involved there's
a lot of different things that are
involved now on top of all this just the
hardware and the software I want not now
you've got things like ok well now we
have to pay also Microsoft ten dollars
per phone for this or maybe we have to
pay three or four dollars for our legal
fees for these lawsuits here and here
and here and while they're probably not
going to make a $200 phone turn into a
two hundred and twelve dollar phone what
they may do is actually cut some kind of
features so for example a phone they
might decide okay it's gonna have 32
gigabytes of storage oh wait now we have
to pay this much for legal fees in this
much for licensing fees okay we know
what let's just go ahead and give it 16
gigabytes of storage same thing goes and
maybe a Super AMOLED to supply they're
like oh that's too expensive we need to
go down to an LCD display now overall
it's really really complicated now don't
get me wrong I definitely support
patents and copyright and all that kind
of stuff
for example if I decide that I'm gonna
design a phone right now and then
someone else copies it entirely I should
be able to sue them I mean that's just
right they stole it but on the other
hand there are definitely some patents
and some definitely some things that are
kind of overly broad and kind of a
little bit silly that I think all it
does is really just hurt you as a
consumer that you're going to get maybe
a
a bit of a less quality phone this and
that so I want to know what do you guys
think about this whole mess nothing be
sure to leave your thoughts in the
comment section below I'm very curious
to know I think there's a lot to be said
on this issue and of course if you found
this video informational helpful whatnot
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