Thursday, November 3, 2011

Apple Loses Android Patent Suit In Spain

Apple (AAPL) is in the legal equivalent of a World War right now, claiming key patents on smartphone technology and saying it will not, under any circumstances, license its market advantages.

The extent of its claims was made clear last week when the company won a patent on its "slide to unlock" feature.

The war is especially intense over Android, a Google (GOOG)-sponsored version of Linux used on tablets and smartphones, and with Samsung (SSNLF.PK), Android's largest OEM.

But a case in Spain might rain on Apple's legal parade.

A small Spanish company selling Android-based tablets under the http://www.nt-k.com/www.nt-k.com/ brand, has beaten Apple's Community design claim, the same right that got Samsung products kicked out of Germany.

Yes, it's a local court, in the picturesque town of Quart de Poblet. But Apple has been playing serious hardball here. Last year it won a customs ban on the nt-k, and had even brought criminal charges. Now the shoe is on the other foot, with the smaller company seeking damages and lodging an antitrust complaint.

It's a big deal because Apple has been seeking broad patent protection for its iOS devices, and because Android phones have begun out-selling iOS in the market, and started catching up in the tablet arena as well. Jobs felt Google stole Apple's intellectual property with Android and, until now, had been winning most of the legal battles.

While it's unlikely the U.S. courts will be reading the Spanish case notes, it's possible higher courts might do just that, which could leave Apple with some very significant competition down the road. Right now the courts look bullish for Apple, but it needs a knock-out, not just a win by decision, to boost its earnings significantly.

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