Apple has been pursuing a scorched earth litigation strategy using its patent portfolio againstGoogle and its Android mobile operating system. Shareholders and gurus almost universally support this strategy. Either there are not many who see Apple’s strategy as flawed or those who see the strategy as flawed are hiding under a rock. I do not blame anyone for not voicing an unpopular opinion. Who needs the hate mail?
I distinctly remember the amount of hate mail I received after I wrote an open letter to Tim Cook on December 29, 2011, pointing out the flaws in Apple’s strategy and suggesting an alternative strategy.
An argument can be made that as profitable as Apple is, it should not be wasting billions on legal battles. The rich are entitled to waste their money, but not when shareholders are involved. Apple should realize that the flawed strategy of not entering into licensing arrangements forces competitors to innovate faster. Forcing competitors to innovate faster and compete harder is a self-defeating strategy for Apple.
It is surprising that fans of Apple’s scorched earth litigation strategy have not woken up after Judge Posner’s 38-page decision. (Please see Judge Tosses Apple’s Case Against Motorola, Apple Management Messes Up.) Posner does not view patent injunctions in the same way that Apple does. How can Apple succeed in a litigation strategy that the court does not agree with?
Unless Apple changes its stripes, the long term risk in Apple stock has just increased…Read more at Forbes
