Simply put, Apple now has the power. They can threaten other android device makers with litigation, or offer them an alternative: namely, paying a royalty on every phone they sell. Many of the other companies using the Android interface will indeed be put in a very difficult position. They can deny Apple’s request to work out a licensing deal, and likely face legal action. After what happened yesterday and witnessing a significant win for Apple, most companies won’t want to take the risk of the same thing happening to them. The alternative is to work out a licensing deal with Apple, and pay a royalty fee on every device sold. If that happens, and Apple receives a $30 royalty fee for every phone (the offer they made to Samsung prior to taking legal action), Apple would actually end up generating more revenue from Android phones than Google would.This obviously wouldn’t be good for the search giant, and Google will have to make some tough decisions regarding their next course of action.
Another possibility for companies currently using the Android interface, is for them to sever ties with Google and Android completely. If these companies don’t want to risk litigation, and want to avoid royalty fees, they may ditch Android in favor of another platform, most notably Microsoft’s Windows. No matter how you look at it, the jury’s decision yesterday doesn’t bode well for Google and Android. As Steve Jobs famously quoted, “I will spend my last dying breath if I need to, and I will spend every penny of Apple’s $40 billion in the bank to right this wrong. I’m going to destroy Android because its a stolen product. I’m willing to go thermonuclear war on this.” Based on what we all witnessed yesterday, it looks like Steve Jobs and Apple might indeed be headed in that direction.
Brandon Kieltyka is currently an undergraduate studying Finance at Daytona State College.
Twitter: @kieltyka05