[HN Gopher] Apple threatens UK market exit if court orders 'unac...
       ___________________________________________________________________
        
       Apple threatens UK market exit if court orders 'unacceptable'
       patent fees
        
       Author : shrikant
       Score  : 119 points
       Date   : 2021-07-12 09:12 UTC (13 hours ago)
        
 (HTM) web link (appleinsider.com)
 (TXT) w3m dump (appleinsider.com)
        
       | nickpp wrote:
       | I wish more companies would have the guts to fight all these
       | crazy government requests and regulations. Let the people choose
       | if they want to lose the services they rely on so that some
       | politician has a glory bulletpoint on his CV.
       | 
       | Alas, the money is too sweet and hard to say no to...
        
         | tpoacher wrote:
         | Similarly I wish more democratic governments would have the
         | guts to fight all these crazy corporate monopolies. Let the
         | people choose if they want to allow unstifled innovation rather
         | than rely on sneakily created monopolies, so that some CEO has
         | another bonus this year.
         | 
         | Alas, the lobby money is too sweet and hard to say no to...
        
       | cma wrote:
       | Thy should be happy with a charge of 30% of gross sales, it is
       | their industry standard.
        
       | amelius wrote:
       | When a quasi-monopolist threatens to exit your market ... perhaps
       | the reason why isn't really all that important.
        
         | forty wrote:
         | That indeed feels like a great opportunity to create something
         | new :) though I'd rather it happening not because of patent
         | trolls :/
        
         | tpush wrote:
         | How is Apple a 'quasi-monopolist'?
        
           | petre wrote:
           | They have nearly 50% of UK smart phone market share. The next
           | big player, Samsung is at 28.7%. That's also probably why the
           | judge said they are unlikely to leave.
        
         | DocTomoe wrote:
         | Sure. On the other hand, this will create societal backlash,
         | not against Apple, but against the government. Tracy needs her
         | iPhone.
        
           | marak830 wrote:
           | Maybe it's time Tracy grew up.
           | 
           | Flippant answer aside, we need governments to learn to stand
           | up more against the superlarge multinational companies that
           | think they can bully their way over what a countries
           | government thinks is good for the population. (I know a whole
           | bunch of hand waving - elected by the people for the people
           | that doesn't always work).
           | 
           | We should applaud a government for standing up though.
        
             | FridayoLeary wrote:
             | >We should applaud a government for standing up though.
             | 
             | Don't get excited, it's just one Supreme Court justice, who
             | has very little to lose either way. No one has even heard
             | of these guys before. I don't believe that Johnson would
             | have the backbone to do such a thing.
        
             | fallingknife wrote:
             | > what a countries government thinks is good for the
             | population
             | 
             | Sounds like China
        
         | nomel wrote:
         | Are you suggesting we stop thinking whenever large corporations
         | are involved?
        
         | vmception wrote:
         | Cute but you forget that countries and municipalities are in
         | competition with each other over attracting business, trillion
         | dollar companies should make good on these threats more often
         | because then they get to come back later for pennies on the
         | dollar
        
           | tomxor wrote:
           | > countries and municipalities are in competition with each
           | other over attracting business
           | 
           | What's the point in attracting a business that doesn't pay
           | any tax... further, I (and many others) would argue Apple has
           | a far less positive impact on it's users than it used to, it
           | has turned into more of a money extracting machine and
           | vehicle for consumption.
           | 
           | In other words, if not having a quasi-monopoly operate in
           | your country is a net positive for society, then who cares if
           | they threaten to leave.
        
             | bilbo0s wrote:
             | Then let Apple leave the UK.
             | 
             | The UK should be better off.
             | 
             | Both sides are happy.
        
             | vmception wrote:
             | Jobs? Whether from the company directly or third parties
             | 
             | Such as the market for accessories creation and trading
             | 
             | All helps GDP and the local economy
        
       | onion2k wrote:
       | 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 PS39m 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.
        
         | Nasrudith wrote:
         | Bad global precedent can be far more expensive and damaging
         | than a mere $39M.
        
         | denton-scratch wrote:
         | Apple's profits fetch up in some tax-haven, as far as I'm
         | aware. They have a problem, because they hold so much cash in
         | tax-havens, that they can't repatriate without incurring
         | enormous tax liabilities.
         | 
         | So yes, the reported profit was just a massive lie.
        
         | tudorw wrote:
         | "An estimated 19,452 iPhones were sold every day in the UK in
         | 2019", give them a break, obviously struggling to get traction.
        
           | mhandley wrote:
           | So that's around 7 million phones per year. Assuming around
           | PS700/phone and 30% profit (very rough made up numbers), that
           | should be PS1.5B/year profit. If the judgement is for PS3B to
           | PS5B 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.
        
             | gcthomas wrote:
             | I'm not sure that leaving the market will absolve Apple of
             | paying the judgement, so staying in the UK market will help
             | them recoup the cost. Leaving would be unlikely to improve
             | their bottom line, so the judge was right - no evidence
             | Apple will leave. This is just posturing, which won't go
             | down well in front of a High Court judge.
        
               | willis936 wrote:
               | Why would Apple pay the fine?
        
               | throwawaycities wrote:
               | Exactly, they don't seem to respect others' legally
               | enforceable IP, the engage in tax avoidance schemes...why
               | would Apple pay a court ordered judgment for damages?
               | Wait is that not what you meant?
        
               | tonyedgecombe wrote:
               | To avoid their executives going to prison.
        
               | willis936 wrote:
               | Their executives in the US? Going to trial in the UK,
               | where the company would no longer do business? How does
               | that work, exactly? Has the US ever extradited a white
               | collar criminal?
        
               | tonyedgecombe wrote:
               | They have executives in the UK.
        
               | willis936 wrote:
               | Why would they have executives in a country that they
               | don't do business in?
        
               | tonyedgecombe wrote:
               | They do do business in the UK, as you well know.
        
               | willis936 wrote:
               | They wouldn't if they were fined, as the headline and
               | article clearly state.
        
               | prepend wrote:
               | I think the intent would be to avoid paying the fine.
               | Without assets, revenue, or profit the UK wouldn't have
               | anything to seize to pay the levy.
               | 
               | The judgement holder could then attempt to go after Apple
               | in other countries, but I think that would result in a
               | court case about whether that's possible or not.
        
             | onion2k wrote:
             | The PS3-5bn fee is a one-off payment (I think..), so you
             | can't really compare it to a single year's profit. It'd
             | need to be amortized against the lifetime of all the iPhone
             | products that are covered by the patent.
        
         | Brian_K_White wrote:
         | The reported profit is probably a joke, since they devize ways
         | to under-report to pay less tax.
        
         | Zenst wrote:
         | 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 patents as
         | they seem to be (not read the patents but mention of 3g and 4g
         | connectivity mooted) then I would of thought FRAND would take
         | presedense
         | 
         | https://en.wikipedia.org/wiki/Reasonable_and_non-discriminat...
        
           | gcthomas wrote:
           | This _is_ a FRAND case, which is why the decision will cover
           | global licence payments.
        
           | dtech wrote:
           | 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.
        
       | pabs3 wrote:
       | Hmm, I wonder what the patents are about.
        
         | chasil wrote:
         | The article implied that it was for 3g and 4g radio-related
         | patents.
        
         | bell-cot wrote:
         | A slightly-critical point, which seems 99.9% ignored here. I
         | found an article - https://www.iphonehacks.com/2021/07/apple-
         | threatens-exit-uk-... - saying "A UK high court judge has ruled
         | that Apple has infringed on two patents of Optis Cellular.".
         | But nothing more.
         | 
         | If the 2 patents are "good quality" - really novel, not a bit
         | obvious to actual experts in that niche (at the time), etc. -
         | then the reasonable (morally, not legally) argument would be
         | about what is a fair rate for Apple to pay to use them.
         | 
         | If the 2 patents are "the usual patent system abuse crap" -
         | vague walls of buzzwords, prior art but with "using
         | $NameOfNewTechnology" inserted in a bunch of places, or such -
         | then the reasonable argument (again morally) would be about why
         | our wretched legal and patent systems are so badly infested
         | with such toxic swill.
         | 
         | But Apple's seeming threat to exit the UK market makes for a
         | lot of drama, and that's mostly what people care about.
        
       | FridayoLeary wrote:
       | Apple aint throwing away a multi billion pound market so cheaply
       | (relatively speaking, of course and "aint" is a real word)
        
       | tpoacher wrote:
       | > Apple threatens UK market exit if court orders 'unacceptable'
       | patent fees
       | 
       | Yes, please.
        
       | rio_de_mierda wrote:
       | Brexit really helps the UK's leverage here. As the dominant
       | economy in Europe, the UK can unilaterally set policies and
       | reasonably expect multinational companies to comply with them.
       | Their threats bear real weight. If I were Tim Apple, I'd be
       | experiencing existential terror right now.
        
         | ginko wrote:
         | The dominant economy in Europe is Germany. The UK has more or
         | less the same GDP as France.
         | 
         | https://en.wikipedia.org/wiki/List_of_sovereign_states_in_Eu...
        
           | [deleted]
        
       | mjburgess wrote:
       | 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.
        
         | throw0101a wrote:
         | > _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._
         | 
         | Devil's advocate:
         | 
         | If the original holder of a patent is a small fry, and does not
         | have the resources to go after the big fish if they take
         | advantage of the patent, shouldn't the original inventor have
         | the right to sell the patent to get _something_ , and then the
         | new holder can use their potentially larger resources to get
         | licensing compliance.
        
           | tomatotomato37 wrote:
           | If we want that to be the case then we need to start
           | differentiating between patents still owned by the original
           | inventor and those transferred through whatever means. Making
           | it so transferred patents lose their protection unless they
           | are actively being used by their new owner would eliminate
           | patent companies being a law office and nothing else while
           | still allowing for people who want to just run a Bell Labs-
           | esque institute without dealing with manufacturing to still
           | run a decent businesses. You could also extend this to
           | disallowing licensing for non-original owner patents too,
           | though I'm not as sure about the second-order effects on that
           | one.
        
             | Brian_K_White wrote:
             | There's probably some complications to that, not that I
             | don't think it's a good idea. I say, if so, address them.
             | 
             | For instance heirs. Inventor invents, dies while they would
             | and should still have all rights, say it's the day after
             | being awarded, patent is transferred.
             | 
             | Inventor recieves a patent, but later that asset or all
             | their assets are seized by the government as part of a
             | criminal process, or awarded to someone else as part of a
             | legal action.
             | 
             | There's probably lots of odd situations I can't even
             | imagine where a patent like any other preoperty or asset
             | (or debt or liability or responsibility) is transferred,
             | without it being a sale and without the recipient deserving
             | to be penalized or put under any extra burden.
             | 
             | Even fully business transactions like a company buys an
             | entire other company, rather than specifically a patent.
             | I'm not sure in that case the assets should evaporate or
             | lose their "first sale" extra value. Maybe they should, but
             | also maybe it's just as fair to consider the new owner
             | still the originator, since the originator is a company
             | which still exists. Maybe it should be considered a
             | transfer if the purchasing company closes the original
             | company as a distinct entity and simply ingests the assets.
             | 
             | Maybe this is all pretty easily handled and it's no problem
             | by just having some sort of legal metadata where the patent
             | has a property flag that says if it's considered to be in a
             | state of being before or after first sale, and any legal
             | process that performs a transfer records whether this
             | transfer constitutes a sale or not.
             | 
             | Another gotcha, it probably also means somehow identifying
             | and disqualifying some "gifts" and allowing others.
             | 
             | Anyway I do like the idea.
        
           | mjburgess wrote:
           | Sure -- my conditions were on the holder of the patent, not
           | whether it can be sold.
           | 
           | In the case the patent owner isn't doing any R&D or engaging
           | in economically productive activity (at all; nor esp. related
           | to the patent).
           | 
           | I think we need, even a very minimal, condition here:
           | 
           | The government is only going to shake-down your competitor if
           | you're actually in the same market. If you're just a guy hold
           | a slip of paper, sorry, the government isn't your muscle.
        
             | londons_explore wrote:
             | > In the case the patent owner isn't doing any R&D
             | 
             | But by licensing the patent to interested parties, they
             | might be supporting R&D of people who might not otherwise
             | be doing R&D in this direction.
             | 
             | The ability to license some tech you know is likely to work
             | in the form of a patent has some value.
        
               | mjburgess wrote:
               | They might be. All of this can be weighed by judges.
               | 
               | I'd be inclined to say: sorry, licensing/selling to
               | companies not in the market is now not possible.
               | 
               | If you need to mitigate risk, insurance companies (etc.)
               | can offer products against patents -- they still have
               | value, just only now to companies actually operating in
               | the relevant market.
               | 
               | And of course, "relevant market" can be read broadly by
               | judges.
               | 
               | Either way, patent law is running amok over innovation,
               | and goverment shake downs and money transfers from
               | producers to rentseekers is a net loss for everyone.
        
           | Kiro wrote:
           | No, because patents shouldn't even exist to begin with.
        
           | salawat wrote:
           | What you're saying:
           | 
           | >If the original holder of a patent is a small fry, and does
           | not have the resources to go after the big fish if they take
           | advantage of the patent, shouldn't the original inventor have
           | the right to sell the patent to get something, and then the
           | new holder can use their potentially larger resources to get
           | licensing compliance.
           | 
           | Hits the crux of the issue. A patent is
           | economically/politically/socially worthless to the inventor
           | themselves without the ability to spend inordinate amounts of
           | legal muscle to tell people they can't use it, and the
           | effective exercise by a patent holder of a patent renders the
           | patent valueless to society for the duration, and creates
           | many perverse incentives and business models for non-
           | practicing entities.
           | 
           | In fact, at this point I'd argue the corpus of patents out
           | there is nowadays less useful to the inventive than it is to
           | the legal profession to keep themselves in work. The last
           | time I read a patent to truly understand something was to
           | figure out how a fire-alarm use casing went back together,
           | and even then, that was of spotty levels of help.
        
           | jbluepolarbear wrote:
           | How does that harbor fair trade? Neither the inventor nor the
           | holder have made any attempt to bring a product to market.
           | 
           | It should be the burden of the court to prove that the patent
           | was actively being used (by the holder) to produce a product
           | and that the infringement directly hurt the potential target
           | market of the product in question.
        
             | joshuaissac wrote:
             | The patent may be too expensive for a small fry to convert
             | into a product. Requiring them to do that turns the patent
             | system into an instrument for incumbents to absorb
             | inventions from others (who cannot afford to build the full
             | product) while not having to release any of their own
             | rights (because they can afford to build the product, so
             | preserve the patent).
             | 
             | A non-practising patent holder is also more likely to
             | licence the patent to lots of other entities compared to
             | one that makes products. This is one of the concerns around
             | NVidia's proposed takeover of ARM, a non-practising entity
             | that creates and licences computer processor designs.
        
         | doublejay1999 wrote:
         | Apple are a patent troll company, often using their size and
         | weight to beat down competition. They have stolen functionality
         | at will to make the product they want, and then fought it out
         | in court.
         | 
         | https://en.wikipedia.org/wiki/Apple_Inc._litigation#Trademar...
        
         | Taniwha wrote:
         | How would this look different from someone holding a perfectly
         | valid patent that Apple was using without licensing it?
         | 
         | (I have no idea as to whether this one is valid or not, I'm as
         | against patent trolls suing people with bogus patents as anyone
         | else)
         | 
         | Surely the patent IS the innovation, and a perfectly valid way
         | to use that innovation is to license it to larger companies.
        
           | _Understated_ wrote:
           | It should be fairly trivial for a judge to ascertain whether
           | someone owns a patent to use legitimately (tech company
           | owning a tech patent for example, whether they are currently
           | using it, invented it, bought it etc.) or whether they are a
           | bunch of lawyers extorting money from legit companies by
           | (ab)using the legal system.
        
           | mjburgess wrote:
           | The patent holder would be a company operating in the same
           | market as apple, having a viable market for products
           | _somewhat related_ to the patents they hold. Eg., an
           | electronics company.
           | 
           | If they can't meet that condition, sell the patent to a
           | company who can. They'll actually innovate with it (ie., use
           | the licence feeds to fund something useful).
        
             | Brian_K_White wrote:
             | I don't see how "operating in the same field" or even
             | "somewhat related" can be determined or valid.
             | 
             | Tons of technology is used in fields other than where it
             | originated.
             | 
             | Probably a lawyer didn't legitimately invent an important
             | new chemistry for a glue, but a baker could, or a
             | landscaper, etc. And math and process/logistics can come
             | from anyone anywhere at any time, even a lawyer.
             | 
             | This may be hard to define and be correct and fair about
             | it.
             | 
             | Then again... in that case they'd be the originator which
             | could be a special status vs purchased as an asset. Maybe
             | not so hard to manage after all.
        
             | MikeDelta wrote:
             | This is a great condition that would invalidate all patent-
             | trolls.
        
             | salawat wrote:
             | This means all patents will eventually flow to a single
             | holder over time (the one most able to offer a patent
             | buyout pipeline). This is a terrible idea without strong
             | anti-trust and forced break-up and anti-consolidation
             | enforcement.
             | 
             | I hate patent trolls too, but if your two outcomes are A)
             | all you'll get is a bunch of umbrella companies coupling a
             | legal firm to a modest widget mill. This is a great way to
             | proliferate e-trash though and B ) The leviathan in town
             | sets up a window to buy out every patent they can to save
             | no long term litigation costs... Maybe your system is
             | flawed to begin with.
        
         | onion2k wrote:
         | It shouldn't matter who owns a patent. If the person or company
         | who registered it has decided to 'cash it in' and sell it to a
         | company whose business is patent licensing is OK. Whether or
         | not the patent is valid is the important issue. Optis 'won'
         | $506m in the US as well, but the supreme court reverted the
         | decision on Apple's appeal. The UK court has decided that it is
         | valid (for now).
         | 
         | Something _very_ important to note here is that the comment was
         | made in regard to a case arguing whether or not Apple agree to
         | be legal bound by another case next year to decide the patent
         | license fee. Apple are arguing that they 'll leave the market
         | if the fee is too high. The reality is actually that if they
         | agree to a binding agreement in the current case, and then
         | decide the fee is too high after the case next year and refuse
         | to pay it, they'll be banned from selling iPhones in the UK.
         | Their exit from the market won't be their choice.
         | 
         | This remark is a scare tactic aimed at making the court agree a
         | lower patent fee. No one believes that Apple will voluntarily
         | leave the UK market, but if the court imposes a high fee Apple
         | might be forced to. It's _highly_ improbable, but it 's not
         | entirely impossible.
        
           | snarf21 wrote:
           | I think that is the material change we need. Patents must be
           | used as an active and relevant part of your product or you
           | don't deserve protection. The point is to encourage
           | innovation and from someone from basically just reselling
           | your idea. If you aren't selling it, then why do you deserve
           | protection?
        
             | IfOnlyYouKnew wrote:
             | It makes literally no difference, as the parent comment
             | already mentioned. You deserve protection for coming up
             | with the technology, not for using it. These patent trolls
             | are one of the methods to support a research program.
             | Universities, for example, aren't set up to sell devices.
             | 
             | As long as the patent is for some actual innovation, there
             | is nothing wrong with this market structure, economically
             | or morally.
        
               | cmorgan31 wrote:
               | And yet the patents are often not for innovation but are
               | purposefully vague to capture iterative improvements
               | under their umbrella and profit from it. It's nonsense in
               | this actual case but the concept of patent protections
               | would be fine if to your point it was actual innovation.
               | How would you even decide what is or is not innovative
               | though? Any idea not in the patent database already?
               | Patents are going to become trickier as we abstract and
               | build more complexity into the overall ecosystem.
        
               | aaomidi wrote:
               | Everyone keeps touting that in the future technology will
               | solve climate change.
               | 
               | Will it? Or will we have to wait for the patent period to
               | expire of said technologies.
        
               | dkersten wrote:
               | > You deserve protection for coming up with the
               | technology, not for using it.
               | 
               | Why? Ideas are cheap, execution is everything and all
               | that. You don't have to literally be the person executing
               | on it, but whoever you transfer or sell the patent to
               | should. I'd be ok with licensing or selling patents to
               | others to build the technology, I'm not ok with licensing
               | or selling the patent to others who will only use it to
               | sue people who do try to build something similar.
               | 
               | The concept of patents was to encourage innovation, not
               | stifle it.
               | 
               | Its also quite common that multiple people invent the
               | same thing at roughly the same time. With these patent
               | trolls, if one of these people gets the invention
               | patented first, but does nothing but rent seeking with
               | it, that will prevent others who came up with the same
               | thing but were too slow to patent it to even try.
               | 
               | Couple that with overly broad, vague or downright invalid
               | patents and you end up with a system that discourages,
               | hinders or puts a large cost on actual innovation. Even
               | if a patent is provably invalid, it costs money in legal
               | fees to get it overturned.
        
               | freeone3000 wrote:
               | The facts alleged here are that apple is using a patented
               | technology, held by someone else, without licensing it
               | first. And now that this is discovered, the remedy is to
               | have Apple pay the licensing fees for the patent
               | (including retroactively).
               | 
               | Without the ability to sue people infringing on your
               | patent, how do you ensure people will pay to license it?
        
               | dkersten wrote:
               | If whoever is holding the patent is not using it for
               | anything other than sue people, then I really don't care
               | that Apple infringed it without licensing.
        
               | freeone3000 wrote:
               | That sort of goes in the face of your "licensing or
               | selling it to others" above though, right?
               | 
               | Let's say you have a patent. You're trying to get someone
               | to license it. They decide, no, we'd rather just use it
               | for free instead. Now you have no buyers, and no
               | licensors -- what is your option but a lawsuit?
        
               | ip26 wrote:
               | The whole point of the patent program is to give you a
               | boost in using the technology (to encourage you to come
               | up with it in the first place)
               | 
               | A research program that only produces patents for patent
               | trolls seems like a useless research program.
        
               | sharken wrote:
               | Useless to the general public, but a great way to collect
               | fees from those infringing.
               | 
               | I wholeheartedly agree with the sentiment that you need
               | to actively use the patent in a product or forfeit all
               | protection.
        
               | Sanguinaire wrote:
               | I'd say actively use _or pro-actively license to someone
               | else_. If a company can 't show that their patents are
               | generating revenue somehow other than lawsuits, the
               | holder should be forced to give the clarinet to a kid who
               | is gonna use it.
        
               | IfOnlyYouKnew wrote:
               | Split a company's research from its production and sales
               | departments into two organisations, and one licenses its
               | patents to the other.
               | 
               | You have transformed a structure where one entities
               | invents and produces to a market structure with one where
               | those are separate roles.
               | 
               | You like the former and abhor the later. But from the
               | outside, this change is absolutely meaningless. It's no
               | different than any other make-or-buy decision.
               | 
               | (Note that "sells a license" is exactly the same as
               | "patent trolling".)
               | 
               | All these feelings you people have are based on the idea
               | of "superficial" patents that aren't "real innovation".
               | Which is, indeed, a problem. But it has nothing to do
               | with the above. Assume some actually useful patent, and
               | these objections fall apart.
        
               | joshuaissac wrote:
               | It is not meaningless. The split structure is actually
               | better (if it is genuinely spun off, rather than created
               | as a tax evasion mechanism) because it can licence the
               | technology to multiple entities, which spurs competition
               | among them.
        
               | simonh wrote:
               | That is no the whole point, and certainly hasn't been
               | going back to the 18th century at least. It is routine
               | for patent holders to license their patents to
               | manufacturers for production. That would not be possible
               | if inventors had to make the product for commercial sale
               | by themselves. It would render novel inventions by
               | independent inventors untenable. Only big corporations
               | with manufacturing resources would ever be able to patent
               | anything.
               | 
               | Take James Watt for example, Matthew Boulton could just
               | have told Watt to take a hike and started manufacturing
               | improved steam engines by himself. Watt couldn't have
               | afforded to make steam engines independently, and why
               | would any investor bother supporting him with capital if
               | they could just set up production without him too?
               | 
               | The problem is with trivial patents, not patents in
               | general.
        
               | dantheman wrote:
               | Your facts are completely false, and in fact it's easier
               | to bring things to market than it's ever been.
               | 
               | Watts held back progress significantly and steam engine
               | development was hampered by his and others patents until
               | the expired. The steam engine would have been built to
               | pump water out of mines whether patents existed or not.
        
               | Buttons840 wrote:
               | I personally consider it morally wrong to deny people
               | from implementing ideas of their own invention.
        
             | cma wrote:
             | This would mean only mega corporaions capable of funding
             | hundred million dollar FDA trials could have drug patents,
             | and people who came up with novel drug mechanisms would all
             | have to work for these companies rather than specialize on
             | early stage innovative research and sell to them.
        
               | evandijk70 wrote:
               | An example would we the Biotech/Pfizer vaccine - it could
               | never have finished clinical trials so quickly if patents
               | were not transferrable between companies
        
               | 3mr wrote:
               | Mega corporations capable of funding FDA trials buy
               | patents and use them to create/produce drugs. Patent
               | trolls don't create anything.
        
               | cma wrote:
               | > buy patents
               | 
               | Whose non-existant patent would they buy under the new
               | system where the non-practitioner can't have one to sell?
               | Or I can see you could only let practitioners enforce,
               | but what would be the details on that? The non-practioner
               | could just threaten to become a practitioner or sell to
               | one in exchange for a settlement from someone violating,
               | or if prior violators were grandfathered in once
               | practitioning from the holder began, it would be a race
               | to violate as many as possible before they could be put
               | into practice, in order to get them free through
               | grandfathering.
        
           | joshstrange wrote:
           | > It shouldn't matter who owns a patent. If the person or
           | company who registered it has decided to 'cash it in' and
           | sell it to a company whose business is patent licensing is
           | OK. Whether or not the patent is valid is the important
           | issue.
           | 
           | Disagree, fully, 100%. To believe this you have to first buy
           | into the idea that the patent system is a good one and/or
           | that people who are doing none of the actual work should be
           | able to rent-seek the people who actually are. If you aren't
           | using the patent you should not be allowed to force other
           | companies to pay you for it, that's just a stupid system
           | (even if it's the system we currently have). I don't care if
           | it's Apple, Google, Facebook, Oracle, or an indie developer,
           | none of them should have to put up with BS patents like this.
        
             | joshuaissac wrote:
             | > If you aren't using the patent you should not be allowed
             | to force other companies to pay you for it
             | 
             | Companies like ARM would not be able to exist under the
             | system you propose. Their whole business model is creating
             | patents and licensing them to others instead of using the
             | patents themselves.
             | 
             | Preventing companies like ARM from licensing their patents
             | would only benefit incumbents like Intel who can afford the
             | massive amounts of investment required to turn those
             | patents into chips.
        
               | joshstrange wrote:
               | So I think we can all agree there is a big difference
               | between the generic/basic patents we've seen trolls use
               | over and over again (stuff like "an input device causes
               | and output device to do something") and an instruction
               | set/CPU architecture. Also I'd bet money ARM has multiple
               | in-house processors for testing/R&D. That's a far cry
               | from the patent trolls who do nothing but "own" a patent
               | they do nothing with and didn't come up with in the first
               | place most of the time.
               | 
               | All that said: so what? My ideal world wouldn't have
               | patents at all. They cause way more harm than good. And
               | we've seen time and time again that the big companies
               | will just straight up copy or buy up any competition, the
               | system is broken.
        
               | joshuaissac wrote:
               | > Also I'd bet money ARM has multiple in-house processors
               | for testing/R&D
               | 
               | When I worked at ARM, we just used FPGAs to emulate the
               | chips and waited for the customers to give us a board
               | with the actual chips. Maybe another division did create
               | their own hardware, but everything we worked with for
               | testing in ours was from customers.
               | 
               | > there is a big difference between the generic/basic
               | patents we've seen trolls use over and over again (stuff
               | like "an input device causes and output device to do
               | something")
               | 
               | If it is a generic/basic patent, why should it make a
               | difference whether the enforcer is a practising entity
               | (PE) or not? Unlike a non-practising entity (NPE), a PE
               | would be less inclined to licence it because they want to
               | keep competitors out. ARM is big enough that they can
               | instigate litigation on their own against infringers.
               | Smaller inventors have no chance of doing that, and
               | patent trolls are often their only venue. Many times, the
               | problem is with bogus patents that should never have been
               | granted because of prior art or obviousness (supported by
               | the authorities failing to perform due diligence before
               | granting patents). And the other is the expense of
               | defending against a valid patent that does not apply to
               | the defendant's product. Patent trolls' portfolios are
               | often full of such patents, but this is not limited to
               | NPEs.
               | 
               | > big companies will just straight up copy or buy up any
               | competition
               | 
               | An example that comes to my mind is Nuance, a practising
               | entity that engaged in frivolous patent infringement
               | lawsuits against a new competitor Vlingo. Nuance did turn
               | their patents into products (Dragon NaturallySpeaking),
               | so they are not considered a patent troll under the usual
               | definition. Yet, their actions against Vlingo were the
               | same as that of a troll, and even though Vlingo won, they
               | were weakened enough to be bought out by Nuance.
        
           | mjburgess wrote:
           | Well as you say it's "leave the market for mobile phones",
           | ie., it'll be iPhone which goes -- rather than Apple as such.
           | 
           | If the fee is 20x on their profits from iphones, personally,
           | I'd leave -- for a few years at least. The opportunity cost
           | is very high: leave for 2+ years and prompt the UK gov to
           | act. Then return.
           | 
           | Also, my issue is exactly with "validity" conditions.
           | Regardless of what they _are_ , my view is we need a change
           | in the law to make cases of this kind non-starters.
           | 
           | My initial stab is this: patents have to held by companies
           | operating in the relevant market to be valid. The ensures
           | licensing fees go towards companies capable of innovation,
           | and limits patent trolling.
           | 
           | I'd prefer, even, to add: those companies are _using_ those
           | patents; or otherwise, have +10 years from their last _use_
           | in a product (etc.).
           | 
           | However, one step at a time.
        
             | vinni2 wrote:
             | > If the fee is 20x on their profits from iphones,
             | personally, I'd leave -- for a few years at least. The
             | opportunity cost is very high: leave for 2+ years and
             | prompt the UK gov to act. Then return
             | 
             | And loose the customers base who would otherwise be locked
             | into iOS/Apple ecosystem? It's not just profits from
             | iPhones they would be loosing.
        
               | chasil wrote:
               | E.U. countries are very close by. Apple products would
               | likely be in duty free in force.
               | 
               | Trade in used devices would be brisk, fed in part by what
               | is brought in.
               | 
               | Then, Apple begins running ads for sympathetic members of
               | parliament, with astonishing levels of cash.
        
               | pmyteh wrote:
               | You're right about the imports. Not sure the lobbying
               | campaign would go like that: party discipline in the UK
               | is too strong for picking off sympathetic MPs to be a
               | useful strategy, and political advertising is very
               | heavily regulated.
        
               | blibble wrote:
               | the devices that infringe identify themselves to cell
               | towers don't they?
               | 
               | would be easy enough for the patent owner to obtain an
               | injunction preventing new devices being used on major
               | cellular operators
        
             | denton-scratch wrote:
             | Trying to blackmail the government by threatening to leave
             | the market suggests phrases involving noses, faces, and
             | spite. It's apple buyers that would be hurt by apple
             | leaving the market -not the government, which would look
             | weak if it capitulates to blackmail threats.
             | 
             | The government doesn't care about apple users. They don't
             | care about any citizens. And anyway, the apple users can
             | always buy their devices in the EU.
        
           | thaumasiotes wrote:
           | > Something very important to note here is that the comment
           | was made in regard to a case arguing whether or not Apple
           | agree to be legal bound by another case next year to decide
           | the patent license fee. Apple are arguing that they'll leave
           | the market if the fee is too high. The reality is actually
           | that if they agree to a binding agreement in the current
           | case, and then decide the fee is too high after the case next
           | year and refuse to pay it, they'll be banned from selling
           | iPhones in the UK. Their exit from the market won't be their
           | choice.
           | 
           | I'm having trouble seeing why this sequence:
           | Court: pay $X fee or stop selling iPhones.
           | Apple: OK, we'll stop selling iPhones.
           | 
           | doesn't represent Apple choosing to stop selling iPhones.
        
             | jsbdk wrote:
             | Pay x or I'll break your legs.
        
               | thaumasiotes wrote:
               | I think you've gotten your example backwards. If you tell
               | me "Pay $X or I'll break your legs", and I say I'll take
               | the broken legs, and you break my legs -- you really want
               | to argue that _that 's_ the decision branch where I
               | wasn't really making a choice?
        
               | jsbdk wrote:
               | Of course you were... You could've paid.
        
               | jerf wrote:
               | Common law has the concept of "under duress". I'm sure
               | other legal traditions have something similar. It is also
               | common sense in the US culture in general that you can't
               | be said to agree to having your legs broken in a
               | situation like that.
               | 
               | While the mythical "homo econominus" may say that there's
               | no difference between "give me $$$ or I'll inflict severe
               | negative utility on you" and "give me $$$ or I'll reduce
               | the positive utility you receive from selling goods by
               | the same amount" by saying it's the same amount of
               | utility in absolute terms in both branches, in practice
               | nobody feels or operates that way, and that's _with_
               | steelmanning this argument by declining to note all the
               | obviously relevant ways in which this metaphor is a
               | mismatch.
        
               | [deleted]
        
             | onion2k wrote:
             | No doubt it's possible to reframe it so it looks like
             | Apple's decision but it isn't really. It's more like;
             | Court: Pay $x fee              Apple: No
             | Court: Your punishment is that you're no longer to allowed
             | to sell iPhones
             | 
             | The outcome is the same, but the reality is that Apple
             | really don't want to stop selling iPhones and would never
             | voluntarily stop, so they're not really _choosing_ to if
             | they 're legally prevented from doing so.
        
               | thaumasiotes wrote:
               | In your framing, did Apple not choose to say "No"? It's
               | not like they're not aware of the situation -- you're
               | commenting on them talking about it.
               | 
               | The court is providing circumstances. Apple responds to
               | circumstances. But the only way they can respond is by
               | determining what they want to do, and then trying to do
               | it.
               | 
               | Note also that in your framing, unless you believe the
               | court would respond to Apple attempting to pay the fee by
               | saying "no, you had your chance, it's gone now, get out
               | of the market", it's still Apple choosing not to sell
               | iPhones.
        
           | chasil wrote:
           | In the interests of demonstrating a harsh penalty for
           | judicial overreach, I would like to see this case made, and
           | Apple abandon the market.
           | 
           | I don't know the British system well enough to understand
           | what reaction public opinion would have on members of
           | parliament, but some censure of the judge and reversal of the
           | patent decision could happen.
        
             | ben_w wrote:
             | Even as a Brit, I don't feel that I understand the British
             | system, though from everything post 2016 I've reached the
             | conclusion that neither does the current British
             | government, and therefore they may well censure the judges
             | even though the judges are supposed to be independent.
             | 
             | Or they might do nothing, because Apple isn't a British
             | company and they want to help Amstrad take over its market
             | share.
        
               | arethuza wrote:
               | "I don't feel that I understand the British system"
               | 
               | Probably doesn't help that there isn't a single UK-wide
               | legal system...
               | 
               | Edit: There are 3 or 4 legal systems in the UK depending
               | on how you count them:
               | 
               | https://en.wikipedia.org/wiki/Law_of_the_United_Kingdom#T
               | hre...
        
               | mjburgess wrote:
               | The judiciary isnt supposed to be independent. That is
               | the american system.
               | 
               | In the UK all power is held by parliament and extends
               | from parliament.
        
               | sofixa wrote:
               | Judicial independence is a mainstay of most democratic
               | countries ( separation of powers in general).
        
               | zabzonk wrote:
               | Parliament writes the laws - the judiciary interprets &
               | implements them, as in all other democracies that I'm
               | aware of.
        
               | michaelt wrote:
               | I don't know why this is being downvoted; compared to the
               | US system, the UK system doesn't implement anywhere near
               | the same amount of separation of powers. As you can read
               | about in sources like [1]
               | 
               | While judges in the UK have life tenure and aren't
               | allowed to stand for parliament, judges are
               | constitutionally subordnate to parliament - they can't
               | challenge the validity of acts of parliament.
               | 
               | And separation of executive and legislature is
               | essentially nonexistent: Getting the support of a
               | majority in parliament makes you the prime minister - and
               | the first-past-the-post system makes it very common that
               | a single party will control a majority of the seats.
               | 
               | [1] https://researchbriefings.files.parliament.uk/documen
               | ts/SN06...
        
               | mjburgess wrote:
               | To add to your comment,
               | 
               | The executive is staffed by members of the lower house.
               | 
               | Until recently the head of the courts were _from the
               | upper house_. So the lower house provided the executive,
               | and the upper provided the courts.
               | 
               | Compared to constitutional systems like the US, the UK is
               | basically still in the same position.
               | 
               | There is no "constitution" that the legal system forces
               | parliament to adhere to. Our courts simply enforce acts
               | and "send them back" to parliament only when there are
               | inconsistencies.
               | 
               | I actually regard the creation of the supreme court here
               | in the UK a pretty silly thing, it should've reminded
               | with the upper house.
               | 
               | Either way, it isnt independent in the US sense.
        
               | [deleted]
        
               | ben_w wrote:
               | The power may flow from parliament, but the judiciary is
               | still (supposed to be) independent:
               | 
               | * https://www.judiciary.uk/about-the-judiciary/the-
               | judiciary-t...
               | 
               | * https://www.judiciary.uk/announcements/swearing-in-of-
               | the-ne...
        
               | M2Ys4U wrote:
               | That's not strictly true. It's the Crown that is the font
               | of all power.
               | 
               | Parliament legislates as the Crown in Parliament - hence
               | the mace must be present in the chambers while Parliament
               | is sitting and all bills must receive royal assent to
               | become Acts of Parliament.
               | 
               | There also exist powers that are (currently) outwith
               | Parliament - namely the royal prerogatives.
               | 
               | The court system is similar, courts derive their power
               | from the Crown, although, of course, they are subject to
               | statute passed by Parliament.
        
             | denton-scratch wrote:
             | In any of the British jurisdictions, neither parliament nor
             | the government can dismiss judges. Nor can anyone else.
             | 
             | If they displease the government, then they might not be
             | chosen to head lucrative judicial inquiries - I think
             | that's the only sanction that government can inflict on
             | them.
             | 
             | Neither government nor parliament can "reverse" a patent
             | decision.
             | 
             | Government and parliament have been known to "censure"
             | (criticise) judicial decisions; usually that behaviour
             | provokes a negative reaction among educated people and
             | thoughtful newspapers. It doesn't happen often.
             | 
             | The government can also appeal against sentence in crimnal
             | cases, if they think the sentence was unduly lenient. This
             | is fairly recent statute legislation, and controversial.
        
               | mjburgess wrote:
               | > neither parliament nor the government can dismiss
               | judges
               | 
               | This is wholly untrue. Parliament can do what it pleases,
               | including disestablish the judiciary and the executive.
        
               | denton-scratch wrote:
               | You're right, it can do what it pleases; it has been
               | known to behead a monarch.
               | 
               | But it still can't dismiss a judge, because Parliament
               | doesn't employ the judges.
        
               | pjc50 wrote:
               | This is technically true but kind of irrelevant? If it
               | comes down to that level of radical transformation, of
               | abolishing the judiciary, the state is on its way to
               | disintegrating. Rather like the Royal power that exists
               | only as long as it's not used.
        
         | dantheman wrote:
         | Patents shouldn't exist.
        
         | Spartan-S63 wrote:
         | Curious: what might the unintended consequences be of making
         | patents non-transferable?
        
           | denton-scratch wrote:
           | Only entities with the money to defend patents would bother
           | to acquire them. Owning a patent would become useless to
           | small-fry. So only large entities would own patents.
           | 
           | The solution is to stop registering stupid patents, and (this
           | would require a massive effort) invalidate all the stupid
           | patents that are already on file.
           | 
           | Or perhaps, change the law so that if an alleged infringer
           | turns out to have "infringed" an invalid patent, all costs go
           | to the alleged infringer. That would encourage people to
           | fight patent trolls, rather than just roll over.
           | 
           | [Edit] I suppose that would only work if the petitioning NPE
           | were required to deposit a bond with the court.
        
         | tut-urut-utut wrote:
         | 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.
        
           | rasz wrote:
           | Apple is super pro patents, they never go for patent
           | invalidation. Case in point they got sued by S3 for S3TC,
           | despite S3TC being stolen Apple QuickTime Road Pizza patent
           | https://news.ycombinator.com/item?id=26758884, and caved in
           | without much fight.
        
             | tooltalk wrote:
             | Apple knows how to play the patent game and routinely
             | petitions PTAB review to invalidate patents. I'm willing to
             | wager that there are at least a few dozens of on-going
             | reviews petitioned by Apple (and its proxy) at any given
             | moment. Take for instance Apple's lawsuits with VirnetX
             | which have been dragged out for several years appeal after
             | appeal with multiple patent invalidations -- in one of the
             | lawsuits, Apple ended up losing to the tune of $500+M,
             | finally paid out in 2021. Apple is pro-patent -- and also
             | one of the most egregious abuser -- insofaras it can game
             | the system in their favor. Like many patent trolls, Apple
             | also shops around for favorable legal outcome, aka, forum
             | shopping, -- eg, Lucy Koh in Apple's backyard is one
             | notorious example.
             | 
             | And who can forget Apple's patent troll operation, Rockstar
             | consortium, that crashed and burned as it was taking off.
        
           | londons_explore wrote:
           | > bunch of small innovative companies
           | 
           | The smart move for the patent troll is to target some of
           | these smaller companies and write license agreements in the
           | form of "I agree to pay $20 per device sold to license this
           | patent". $20 is nothing to a company selling Ships, Oil rigs,
           | tunnel boring machines, etc.
           | 
           | Then when it comes to apple, paying $20 per iphone is
           | suddenly rather expensive, but the troll can show the court
           | lots of licensees all agreeing to pay that rate, and it can
           | then be established as a reasonable rate for this specific
           | patent.
        
           | Tenoke wrote:
           | 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.
        
             | mjburgess wrote:
             | If apple's UK _iPhone_ profits really are in the c. 50mil
             | range, then a (5 to 10)bn fee to remain is commercially
             | non-viable.
             | 
             | Note that this is about Apple's ability to sell an iPhone
             | in the UK, and as far as I can see, it wouldnt affect
             | whether the entire company would remain in the UK.
             | 
             | If I were apple, I would withdraw a product from a country
             | which supported this kind of racketeering.
        
               | Mindwipe wrote:
               | > If I were apple, I would withdraw a product from a
               | country which supported this kind of racketeering.
               | 
               | Lol. If this is "racketeering" then Apple will have to
               | withdraw from literally every Western developed nation.
               | 
               | This case only didn't happen in the US because the court
               | didn't find the patent to be valid, by a thin margin.
        
               | inertiatic wrote:
               | Apple sells 7 million iPhones a year in the UK, Google
               | tells me. Even at just 100 profit a unit, should be way
               | more than 50 million in profit. Ignoring income from
               | other things like accessories, the store etc.
        
               | TeMPOraL wrote:
               | Not to mention, the complementary effects. Someone buying
               | an iPhone today is more likely to choose an Apple device
               | as their laptop. Someone buying an iPhone today is more
               | likely to buy another iPhone in a few years, over an
               | Android phone.
        
               | bilbo0s wrote:
               | If it's only 7 million, then Apple would definitely
               | leave.
               | 
               | I had no idea it was that low. I would have thought it
               | would be from 10 to 14. To put it in perspective, Apple
               | sells 4 times that many in China. With China and the US
               | being their bread and butter. Also, their marketshare in
               | China and the US has way more upside. (Room for growth.)
               | 
               | I can understand now. You definitely don't want to pay
               | money to stay in a market that has less upside than your
               | money makers. That would mean you're using money from
               | your money makers to fund customers who are not your
               | money makers. From a much smaller businessman's
               | perspective, I'd file that under, "There are some
               | customers out there that are too much trouble."
        
               | Tsiklon wrote:
               | There are 65 Million people in the UK, China and the
               | United States are significantly larger both in terms of
               | population. I haven't checked the numbers, but it is not
               | unreasonable to assume that there is a similar amount of
               | iPhones sold per year per capita in the UK as compared to
               | those other two markets.
        
               | denton-scratch wrote:
               | Leaving the UK market won't save them licence fees.
               | They've already been incurred. It would be less like
               | relatiation, more like flouncing off in a huff.
        
             | rchaud wrote:
             | Doesn't seem to be that detrimental in China. Apple always
             | manages to work something out over there.
        
         | Black101 wrote:
         | > All people holding patents need to be innovating with them,
         | or otherwise, lose them after a short period.
         | 
         | A patent only last 15 or 20 years... copyright is a much bigger
         | issue (copyright protection lasts for the life of the author
         | plus an additional 70 years).
        
         | crossroadsguy wrote:
         | What do you think of patents Apple owns?
         | 
         | If some company decides to borrow those patents and Apple asks
         | for money, who should set the price? Again, Apple?
        
       | MR4D wrote:
       | It seems like this is the part that most offends Apple:
       | 
       | "* In 2020, the UK Supreme Court ruled a UK court can set the
       | rate for patent payments worldwide, despite the court only being
       | able to consider the infringement of UK patents.*"
       | 
       | If every country took that approach that the UK Court seems to be
       | taking, international trade would suffer greatly.
        
         | gcthomas wrote:
         | This is not for patent disputes in general, only disputes
         | involving standard essential patents (SEPs), which these are.
         | The court took standards setting organisation powers to decide
         | fair, reasonable, and non-discriminatory (FRAND) terms for
         | global application. FRAND licences are global by their nature,
         | so we shouldn't be surprised that the Supreme Court asserted
         | this in its decision.
         | 
         | This isn't UK over-reach, but an application of international
         | standard approach, afaict.
        
       | henearkr wrote:
       | When I read "patent company" I can't help but understand it as
       | "patent troll".
       | 
       | A company specialized in making money from patents can't be any
       | good...
        
       | ben_w wrote:
       | 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.
        
       | benjaminjosephw wrote:
       | 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.
        
         | Zenst wrote:
         | Reading https://www.techradar.com/uk/news/apple-app-store-was-
         | a-majo... I'd say it is not so much the consumers that would be
         | impacted by such a hissy fit that Apple has mooted.
        
           | sdflhasjd wrote:
           | Of course, that's a claim from Apple in response claims of
           | anticompetitive behaviour.
           | 
           | I find it difficult to believe, as a mobile developer myself,
           | that 330,000 jobs are being supported by the App Store in any
           | meaningful way.
        
             | ben_w wrote:
             | Sounds about right to me.
             | 
             | Fermi estimate:
             | 
             | apps-not-abandoned * average-developers-per-app-this-year
             | ~> 2 million apps * 2 developer-months ~> 333,000
             | developers
        
               | sdflhasjd wrote:
               | _UK jobs_.
               | 
               | I know "meaningful" isn't well-defined, but more than 1%
               | of the entire UK workforce is not dependent on the App
               | Store (that couldn't be replaced by any other app
               | marketplace)
        
               | ben_w wrote:
               | Ah, I missed that. That does make a difference, and I
               | could only justify it in the unlikely event of a decent
               | percentage of those apps being for businesses
               | specifically dependent on _iOS apps_ in particular rather
               | than mobile phones and websites in general.
        
         | wccrawford wrote:
         | It would create quite a power vacuum, and it would scare people
         | in other countries as well.
         | 
         | But I'm not convinced that it would cause a new competitor to
         | exist. I think it's more likely that existing companies will
         | eat up that market instead, and I don't think there are any UK
         | companies poised to take over that market segment.
        
           | jowsie wrote:
           | People will simply import iPhones from elsewhere, or buy
           | Samsungs instead.
        
             | PeterisP wrote:
             | "People will simply import iPhones from elsewhere" is not
             | an option - if there's a patent decision, then it would
             | also mean that imports are a patent violation, all iPhones
             | would have to be seized at the customs. Not-for sale items
             | in personal luggage might be exempt, but bringing a new
             | iPhone in a box for someone else would literally be
             | contraband in this situation.
        
               | pjc50 wrote:
               | Fortunately the UK has an open land border with Ireland.
               | Pop over to Belfast, train to Dublin.
               | 
               | (Apple make EUR110bn profit in Ireland according to their
               | accounts. There is no Dublin Apple Store.)
        
               | Nasrudith wrote:
               | Well yes but smuggling is a very old occupation for a
               | reason. People won't follow a law they think is
               | illegitimate when they feel they can get away with it. So
               | it would work like the war on drugs. Cocaine is very
               | common for a consumable "not an option" for importing.
               | 
               | Hell that same circumstance of personal use is how the
               | underground USSR blue jeans market came about!
        
         | moshiv wrote:
         | It will never happen. Just have to count the number of iphones
         | and macs in the hands of people with power.
        
           | paulcole wrote:
           | Also it's a nearly free victory to anybody challenging the
           | incumbents in power at the time. Imagine being one of the
           | people on duty when Apple (a hugely popular consumer brand)
           | pulls out of your country. Hard to explain that one to the
           | constituency and come out looking good.
        
             | deregulateMed wrote:
             | Yeah Apple has a far bigger marketing budget than any
             | politician.
             | 
             | A politician could be correct that 1+1=2, but Apple will
             | twist your emotions until you cave.
             | 
             | Or at least that works on some people.
        
             | bb101 wrote:
             | We'd have new legislation within a week targeting patent
             | trolls. I can't imagine anything that'd make a government
             | more unpopular than taking away everyone's iPhones, iPads
             | and Macs.
        
         | LightG wrote:
         | Please allow me a hearty, LOOOOOOOL.
         | 
         | And I'm not really a fan of Apple either, but still.
        
         | arcturus17 wrote:
         | 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.
        
           | [deleted]
        
           | benjaminjosephw wrote:
           | Imagining a change in the tech landscape isn't that absurd.
           | If there's a vacuum in the market, do you not think there are
           | capable technology startups in the UK that could fill it?
        
             | bencollier49 wrote:
             | We have tons of opportunities in the UK to build a mobile
             | firm. ARM is based here, for starters.
             | 
             | Unfortunately with Brexit it has become fashionable in
             | certain quarters to 'do-down' the UK's capabilities.
        
               | arcturus17 wrote:
               | Like I said in another comment, the high-end consumer
               | mobile market outside of Apple is a red ocean and I
               | seriously doubt the UK would be able to build a global
               | scale corporation commanding ludicrous margins like
               | Apple.
               | 
               | > with Brexit it has become fashionable in certain
               | quarters to 'do-down' the UK's capabilities
               | 
               | It has also certainly become fashionable in other
               | quarters to 'do-up' the UK's capabilities.
               | 
               | I don't deny that the UK has technological clout beyond
               | digital, with excellent universities, a great tradition
               | in science and engineering, and a global hub in London.
               | 
               | But a competitor to Apple? Come on.
        
               | Apocryphon wrote:
               | Time for the great Dana Sibera
               | (https://twitter.com/NanoRaptor) to make some wondrous
               | alternate history pictures of a world where there was a
               | BBC Micro smartphone, or a ZX tablet.
        
               | Mindwipe wrote:
               | > We have tons of opportunities in the UK to build a
               | mobile firm. ARM is based here, for starters.
               | Unfortunately with Brexit it has become fashionable in
               | certain quarters to 'do-down' the UK's capabilities.
               | 
               | The problem with building a mobile firm is that it's
               | extremely expensive capital wise, and difficult.
               | 
               | There has not been an effective new entrant in the market
               | globally in quite some time. It is not "doing the UK
               | down" to suggest that there is no opportunity here for
               | someone who doesn't already do high end phone
               | manufacturing, and it's worth noting that the margins for
               | everyone else in the mobile market are pretty crummy
               | actually.
        
               | saati wrote:
               | Apple only licenses the ARM ISA, ARM core designs are way
               | behind the Apple ones.
        
             | pjc50 wrote:
             | Someone did try: https://wileyfox.com/
             | 
             | Made in China, obviously, but British labelling and
             | marketing. They lasted a few years before bankruptcy.
             | 
             | I think if apple somehow did exit the UK the replacement
             | would be (a) black market iphones and (b) all the other
             | Android manufacturers.
        
             | Mindwipe wrote:
             | > Imagining a change in the tech landscape isn't that
             | absurd. If there's a vacuum in the market, do you not think
             | there are capable technology startups in the UK that could
             | fill it?
             | 
             | No.
             | 
             | Samsung, Huawei and Sony would fill it.
             | 
             | There is no UK company that has the scale to be able to
             | deliver a competing product before those companies absorb
             | all the available market share.
        
             | ben_w wrote:
             | I expect any change in the marketplace that a startup could
             | fill is one where Apple is already non-dominant, and
             | therefore not preventing a vacuum by occupying. Worse, in
             | the hypothetical where Apple left the UK in order to not be
             | bound by a UK-specific IP infringement judgment, Apple
             | would be have _greater_ liberty to just fire up the
             | metaphorical photocopier.
        
             | arcturus17 wrote:
             | I can certainly imagine the UK doing well in some tech
             | niches, but not in high-end, global scale consumer
             | electronics like Apple, no.
             | 
             | The high-end mobile phone market outside Apple is a shark-
             | infested red ocean to start with. Then there's the fact
             | that even if Apple stopped operating in the UK, you'd still
             | have to compete with them globally.
             | 
             | I cannot foresee a Black Swan event like a random dude from
             | the Midlands becoming the next Steve Jobs, but other than
             | that I don't think it's worth entertaining that there will
             | be a real British contender to the American trillion dollar
             | mastodon.
        
               | bb101 wrote:
               | To be fair, a random dude from Essex designed the
               | original iMac, iPod and most Apple devices thereafter.
        
               | arcturus17 wrote:
               | But Americans capitalized on it, and it's not a
               | coincidence.
        
               | OJFord wrote:
               | Using a British chip architecture.
               | 
               | I don't think a sudden Apple competitor is at all likely
               | to appear either, but not from any country, nothing
               | really significantly making it more or less likely from
               | the USA or UK (or Germany or Canada or ...) IMO.
               | 
               | With the exception I suppose that perhaps it _is_ more
               | likely from China than anywhere, public perception really
               | soured but you could imagine Huawei (or Xioami or
               | whatever) phones could 've gotten popular. (They can
               | never seem to get fonts and branding 'right' though? I
               | don't understand why they don't hire 'western' branding
               | consultants, even dirt cheap students, just to get some
               | feedback on the way things look. It wouldn't take much to
               | be able to charge a lot more for the obviously
               | identifiable tat on Amazon (and also all over
               | AliExpress).)
        
             | [deleted]
        
         | [deleted]
        
       | ksec wrote:
       | For reference the King of all 3G/4G and 5G patents Qualcomm only
       | charge ~$7-$15 per devices depending on how you count the rebate
       | on Modem.
       | 
       | >In 2020, the UK Supreme Court ruled a UK court can set the rate
       | for patent payments worldwide, despite the court only being able
       | to consider the infringement of UK patents. A trial in 2022 will
       | determine how much Apple will have to pay.
       | 
       | From my limited reading I _think_ and correct me if I am wrong
       | that is why the numbers it so large at $7B. It is basically if a
       | patent that is ruled valid in the UK, the company will have to
       | pay the fees for it worldwide, i.e ~250M unit per year and all
       | the past years of infringement. The only way to not have to pay
       | would be to get out of the UK market so the company will have to
       | have its patent on trial in court in every other country.
       | 
       | There is no way that $7B was made solely on the iPhone sold in
       | UK. The numbers just dont add up.
       | 
       | >> 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.
       | 
       | This is not a threat. But a valid argument, which is so rare from
       | Apple. It is not the first time Apple has _threaten_ to leave the
       | market in numerous other occasions such Australia, Germany, or
       | EU.
        
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