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Apple threatens UK market exit if court orders 'unacceptable' patent fees

appleinsider.com

11–20 of 188 posts

Re: Apple threatens UK market exit if court orders 'unacceptable' patent fees

#11

The UK has a relatively strong chance of creating decent competitive challengers to Apple if the UK market opens up with their exit. Even if a few consumers are frustrated in the short term this could lead to a fantastic outcome for a competitive consumer marketplace over the long-term.

I don’t know about your politics, but regardless, “the UK will be able to build an Apple competitor” sounds like a level 99 brexiteer delusion.

Re: Apple threatens UK market exit if court orders 'unacceptable' patent fees

#12
post #3
post #2

How much the fees should be and how Apple react to them are separate issues. Given the fact that Apple Retail UK posted a profit of just £39m in 2020 though, it seems likely that they'll have to exit the market as they won't be able afford even a reasonably low patent fee. Assuming that their reported profit wasn't just a massive lie to avoid tax, obviously.

"An estimated 19,452 iPhones were sold every day in the UK in 2019", give them a break, obviously struggling to get traction.

So that's around 7 million phones per year. Assuming around £700/phone and 30% profit (very rough made up numbers), that should be £1.5B/year profit. If the judgement is for £3B to £5B as the article states, I can see why they might decide to exit the UK market. But that only makes sense if they don't then lose the patent cases in other juristictions, and end up having to pay similar royalties anyway.

Re: Apple threatens UK market exit if court orders 'unacceptable' patent fees

#13
post #7

When a quasi-monopolist threatens to exit your market ... perhaps the reason why isn't really all that important.

Sure. On the other hand, this will create societal backlash, not against Apple, but against the government. Tracy needs her iPhone.

Re: Apple threatens UK market exit if court orders 'unacceptable' patent fees

#14
Let's be clear. This is a patent troll company engaged in anti-innovation rent-seeking behaviour. They're seeking billions in payouts and provide zero innovation, research, development, etc.

Just because it's targeting Apple doesn't make it right. Companies of this type should be illegal. A patent is a government-sponsored monopoly which shouldn't be "pooled" by "patent companies" whose only purpose is to use the state to extract money from companies actually producing goods.

All people holding patents need to be innovating with them, or otherwise, lose them after a short period.

Re: Apple threatens UK market exit if court orders 'unacceptable' patent fees

#15

The UK has a relatively strong chance of creating decent competitive challengers to Apple if the UK market opens up with their exit. Even if a few consumers are frustrated in the short term this could lead to a fantastic outcome for a competitive consumer marketplace over the long-term.

[deleted]

Re: Apple threatens UK market exit if court orders 'unacceptable' patent fees

#16

Let's be clear. This is a patent troll company engaged in anti-innovation rent-seeking behaviour. They're seeking billions in payouts and provide zero innovation, research, development, etc. Just because it's targeting Apple doesn't make it right. Companies of this type should be illegal. A patent is a government-sponsored monopoly which shouldn't be "pooled" by "patent companies" whose only purpose is to use the sta…

In this case, I'm glad it's actually targeting Apple. There are a bunch of small innovative companies targeted by patent trolls that don't have means of Apple to fight back and actually change the system to be more level-headed.

But I'm afraid Apple will not fight for the reform of the patent system, but will just try to protect itself. In which case I don't care about the outcome, since Apple also uses the same patent trolling tactics elsewhere to suppress its competition, e.g. litigations against Samsung in Germany, to name one such case.

Re: Apple threatens UK market exit if court orders 'unacceptable' patent fees

#18
post #4
post #2

How much the fees should be and how Apple react to them are separate issues. Given the fact that Apple Retail UK posted a profit of just £39m in 2020 though, it seems likely that they'll have to exit the market as they won't be able afford even a reasonably low patent fee. Assuming that their reported profit wasn't just a massive lie to avoid tax, obviously.

In 2020, the UK was still part of the EU and with that Apple could and did move much EU based sales to Ireland for tax purposes. So with that in mind, along with how companies game the tax systems, I take any figure with a pinch of salt. That said Apple postulating this as retaliation to a legal court case pertaining to a valid patent, does seem a bit purile. But the real question I have is - if these are core patent…

Even when outside of the EU, this is still very much possible. The cayman islands aren't part of the EU or US and still very popular tax havens.

Re: Apple threatens UK market exit if court orders 'unacceptable' patent fees

#19
The quote in the article didn’t read like a threat to me. I don’t have the full context, but the quote from Apple’s lawyer is:

> I'm not sure that is right. Apple's position is it should indeed be able to reflect on the terms and decide whether commercially it is right to accept them or to leave the UK market. There may be terms that are set by the court which are just commercially unacceptable.

Perhaps that’s diplomatic lawyer-speak for “we’re leaving and taking our ball with us” (any lawyers please do comment), but as an outsider I don’t see it.

Re: Apple threatens UK market exit if court orders 'unacceptable' patent fees

#20

Let's be clear. This is a patent troll company engaged in anti-innovation rent-seeking behaviour. They're seeking billions in payouts and provide zero innovation, research, development, etc. Just because it's targeting Apple doesn't make it right. Companies of this type should be illegal. A patent is a government-sponsored monopoly which shouldn't be "pooled" by "patent companies" whose only purpose is to use the sta…

In this case, I'm glad it's actually targeting Apple. There are a bunch of small innovative companies targeted by patent trolls that don't have means of Apple to fight back and actually change the system to be more level-headed. But I'm afraid Apple will not fight for the reform of the patent system, but will just try to protect itself. In which case I don't care about the outcome, since Apple also uses the same pate…

They are literally fighting it with this case, no? Exiting if they fail will also be great as it might become more clear to those who can change the system how much of a detriment it is.
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