Another day, another patent/licensing disputeApple have put themselves in a bit of a tight spot, and Microsoft is holding the leash. It turns out that Apple was late in filing a patent for their iPod music player, and Microsoft beat them to the game. For now, it looks like Apple will have to be paying Microsoft $10 for every iPod sold -- but an appeal is most likely already under way.
The US Patent Office has ruled that Microsoft has the right to charge competitors a licence fee for each iPod sold.
Furious, Apple has said it will appeal the decision but at the moment it looks as though the firm will be paying a high price for the success of its product.
The iPod was launched in November 2001 but Apple waited until July 2002 to file for a patent; Microsoft snuck in to license some of the technology the previous May.
Oooh boy -- that Microsoft is sneaky. The only leverage that Apple has at this point is the fact that they started selling the iPod the year before Microsoft filed the patent. I'm not too sure about patent/licensing laws in various countries, but I know that they usually fall into either "first-to-file" or "first-to-invent" categories. Apple could end up paying Microsoft for every iPod sold only in certain countries.
Article Link: APPLE'S IPOD PATENT GAFFE
