Apple in Jeopardy?
Sometimes I don’t know how Apple keeps up with it all: dreary reports about Apple’s future due to a drastic decrease in stock value this week and the fact that ZapMedia’s pending patent sale threatens all digital audio and video companies that distribute on the Internet.
TechWeb Technology News reports ZapMedia Services now owns Patent No. 7,020,704 and has put it up for sale. Whoever buys the patent will hold the key to a potential digital rights management platform; a distribution model for audio and video digital content.
“The patent, issued in March, is the first in the portfolio to gain approval. Three other patents are pending, said Lava Group president and CEO Robert Frohwein on Wednesday. “The patent covers content that’s acquired and licensed over the Internet, as well as content that you may have acquired or licensed and uploaded to the portal,” he said. “Until now, the patent has really flown under the radar because it’s not assigned to a particular company. Claim No. 7 is particularly important.’”
Claim No. 7 is expected to create the problems for Apple. According to TechWeb, the first portion of the claim refers to a user account that corresponds with at least one person, and a virtual media asset library with reference to multiple assets the user has a license to access. The second portion of Claim No. 7 refers to software that can connect the media portal to more than one device.
Floam told TechWeb he remembers ZapMedia having difficulties gaining the rights to distribute media assets over the Internet. “Ironically, Apple Computer Inc. may not have been the initial innovator to many of these emerging technologies and could become subject to third-party patent rights, he said.”
ZapMedia, however, isn’t interested in enforcing the rights. Instead, the company plans to leave that up to the patent’s new owners.
Reuters reports that an Apple analyst reports that the new iPod products could be delayed up to several months, causing Apple’s stock to plummet to an 8-month low. Shaw Wu of American Technology Research told Reuters the new nano was expected in the third quarter, but will likely be pushed back to December.
And the new video iPod could be delayed until the first quarter of 2007 instead of the end of 2006, Wu wrote in a note to clients.
“Wu believes the nano delay is because Apple is switching from chips made by supplier PortalPlayer to those from another chipmaker. He said the company will also introduce a new high-end iPod.”
Despite these concerns, Wu maintains a “buy” rating on Apple because he believes it offers a unique mix of hardware, software and services. Wu also trimmed his price on Apple shares from $101 to $75.
While the iPod, and its companion iTunes music software and service, remain dominant in the digital music market, Apple has relied on new models and services to re-energize demand. But Wu notes that the last new iPod device came out last October.
“The stock has pulled back as the overall tech market has been week, but there is also a lack of new product momentum,” Wu told Reuters. “The Nano was introduced last October, it was very strong but it hasn’t done that well, and it is in need of a refresh.”
PortalPlayer is a San Jose, Calif.-based maker of semiconductors used in portable media devices, such as MP3 players.
Shares of Apple, which have traded between $36.12 and $86.40 over the last year, were down $1.72, or 3 percent, to $55.71 in afternoon trading on the Nasdaq.
So what should Apple do about all this? Roll with the punches, baby.
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Blackberry arguably faced a much more grave patent issue, but the courts managed to help them just enough to get through it based on the importance of the Blackberry to its considerable user base.
Granted, businesses aren’t likely to go down if the iPod faces a patent issue, but there are enough users that some arbitration entity (provided it even comes to that) would force a solution.
As for the stock prices and product launches, Apple fans like to point to stock stagnation and product delays to spell doom and gloom for Microsoft. But it isn’t any more true of them than it is of Apple.
You’ll know Apple’s in trouble when Jobs “retires” or decides to jump ship for Disney.
Claim No. 7 is expected to create the problems for Apple. According to TechWeb, the first portion of the claim refers to a user account that corresponds with at least one person, and a virtual media asset library with reference to multiple assets the user has a license to access. The second portion of Claim No. 7 refers to software that can connect the media portal to more than one device.-Darcy
Another flim-flam IP extortionists (worst than IP trolls) in the making. We’ll see how they can back that “prior art” counter-attack that definitely would ensue upon mere enforcement. It doesn’t hold a jug of juice for me.
And, Darcy, you are saying this is the reason for the delayed introduction of the new iPod armaments? That is a dubious claim. Perhaps, I misunderstood you.
We know that the new iPod warships are delayed a few months but will be available for fall’s climactic battles with M$‘s much-rumored “iPod-killer"s.
Alas, iPod shipbuilders SigmaTel got the nod for supplying Apple its much-needed media processors after apparent snafu of one of Portal Player’s tactical leaders. Apple’s commando elite Steve will not tolerate such disgraceful act as disclosing trade secrets. Better luck next time with your next-gen processors, PP. It isn’t too late to apologize and impress the Steve.
You’ll know Apple’s in trouble when Jobs “retires” or decides to jump ship for Disney. -Bbx
Another bad assumption without factual data? Steve’s almighty spirit can handle Apple just as well as his physical greatness.
Let’s play “what if?” then. What if Steve retires? Well, Steve’s ethos and tactical weaponries and information shall be handed down to the next, most capable of them all - Me. If someone else is selected by God’s grace, then he will have everything on his expense to continue the battle with M$ and her mutant minions.
Another, Disney is now under Steve’s spell anyway so he won’t even need to be at Disney physically.
After visually absorbing the newest Masterpiece of Unpredictability and Creativity - Disney/Pixar’s creative genius John Lasseter’s Cars (http://en.wikipedia.org/wiki/John_Lasseter) over the weekend, Disney in my mind has rightly “fork"ed over $7.4 bln and change to the Steve for just the opportunity to have John’s creative genius (make note of that, Bbx!) contaminate the entire Disney culture of bland, boring, predictable, unmotivated artists. People in Burbank needs more Mac faithfuls leading the way to entertainment heaven.
When Iger is gone, do not for a nanosecond, assume Steve will take the reigns, for His creative elite John is doing a OK without Steve’s breathing behind. John Lasseter has ALL my votes to take Disney where it has never been since the great Walter/Roy Disney duopoly of creativity.
And as for Apple post-Steve is also not a concern (http://en.wikipedia.org/wiki/Apple_Computer).
COO Tim Cook, Marketing SVP Phillip Schiller, and the most-inspiring of all Steve proteges: SVP Industrial Design Jonathan Ive (http://en.wikipedia.org/wiki/Jonathan_Ive).
Jonathan has to be the leading candidate for his youthful vigor in all things design. He has the making of a Jobs-like nitpicky demeanor, if not already, by the examples of his designs: the “lamp"uette iMac G4, simplicity and functionalities in the iPod lines, and let’s not forget, the bulbous CRT-iMacs or yore.