Law & Apple: Apple Clearly Winning Global Patent War

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site7000

There is no evidence anywhere, and it certainly makes no logical sense, that Apple has reduced R & D spending as a result of legal expenses. Apple has more cash than it knows what to do with and R & D is its lifeblood.

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Adrian Hoppel

Hi site 7000,

Thanks for the reply. There is evidence that Apple has spent more on legal fees than on R&D, but you are right; there is no evidence that they spent *less* on R&D because of the legal fee spend. I was basing my content on this quote from the NYT (October 8, 2012, beginning on page A1 of the New York edition with the headline: The Patent, Used as a Sword):

"In the smartphone industry alone, according to a Stanford University analysis, as much as $20 billion was spent on patent litigation and patent purchases in the last two years — an amount equal to eight Mars rover missions. Last year, for the first time, spending by Apple and Google on patent lawsuits and unusually big-dollar patent purchases exceeded spending on research and development of new products, according to public filings."

I do believe that the amount that is spent on patent litigation and patent purchases impacts the amount of cash flow that Apple and Google are willing to spend on other operational costs, including R&D. I also believe that if the patent wars ended, and Apple and Google went back to focusing the vast majority of their resources on R&D other consumer-facing areas, we (the users) would benefit.

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